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Is This A Deal?

nateham6 profile photo
  • Wednesday, February 22, 2006 @ 07:49 PM EST
  • 2 Comments
Is this a deal that can work?

Seller owes $151K
ARV: $160K
Repairs: Carpet maybe ($2000)
Payment: $1200

Proposed exit strategy:
Do a sandwich lease option. Have the seller do a lease option with me for nothing down and the payment equal to the mortgage payment.
Then offer a lease option to a tenant/buyer for an option fee(instant cash) and a higher rent(cash flow).

What do you all think?

Thanks,

Nate
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  • IBuyHousesInc
    IBuyHousesInc9th February, 2006
    0
    Reply

    Could you buy subject to the existing loan and for that amount, have the seller agree to make the next 3 monthly payments.

    Exist strategy would be a resale sub 2 at 170,000.00- 175,000 at an interest rate greater than that of the current mortgage with 7.5k down all due in 5 years or before the sub 2 interest rate increases... no repairs

    or lease with option to purchase at 175,000 7500.00 option consideration and a monthly rent payment of 1500.00 with a 200.00 rent credit must cure purchase within 24 months.

    I don’t like sandwich leases… What happens if the seller defaults on selling you the property?
    [addsig]

  • nateham6
    nateham610th February, 2006
    0
    Reply

    Thanks for the advice.

    On the first suggestion, are you suggesting taking the deed to house and then selling it with a wrap around mortgage to another buying? Thats what is sounds like.

    And on the second suggestion, take the deed and offer a lease option with those terms?

    Moral of the story: Take the deed, right?

    Thanks,

    Nate

    [addsig]

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