Fred McIntire

I guess I should have clarified that, as MC said, I will be sending the back payments, as well as all future payments to the lender myself. The other mitigating factor is the fact that I know the person who owns the house. I wouldn't suggest doing this on a regular basis with a total stranger, either.

The ink is on the paper! I now have the property leased with the option to purchase! I'm sorting thru the ad callers now to try to find a decent tenant / buyer. I have one with a 557 credit score. I'm not sure about the others. I'm not wasting time on those who are not motivated enough to call me back after giving them the address to drive by. So far, so good. I'll post a picture of the property soon.

Well, here's an update. The deal is going together! I know that some advise against negotiating anything extra into the deal but to offset my out of pocket expenses, I'm getting a 1998 Dodge Ram Pick up that needs a little work as well as the house. The truck ought to be worth $3,500. I'm working on putting the paperwork together now. Hopefully this will all be wrapped up by this time tomorrow. Then the real fun starts! I've gotten 7 calls from potential tenant buyers over the last 2 days on my Rent To Buy ad that I ran in the local paper. I'll keep you updated. Fred

MC; Thanks for the response. I was hoping you would jump in here. As for the back payments, I would bring them current out of my funds. I had also planned on doing the repairs. After looking at it, I think I can pare the cost of repairs down to less than $1,500. Installing carpet they have already purchased; painting; replacing the trim around the interior door frames; and maybe a little kitchen spruce up. I don't like the idea of tenants doing initial repairs. I've been there and done that! I suppose I could give a credit on the interior painting if they wanted to do it. ???? Maybe $500 dollars applied towards the option fee. ???? I think if I did that though I would raise the option fee by $500 to keep actual cash money flowing into the deal. Maybe a $3,000 option fee and give a credit of $500 towards that for them doing the interior painting. What has been your experience with tenant buyers doing work or repairs? As far as the option consideration, I feel certain I could get at least $2,500. It may be a little stretch to get the $5,000 but remember we are talking $85,000 to $89,000, not the purchase price of $68,000. Then you never know, it is tax refund time. I did go ahead and run a Rent To Buy ad in the local newspaper that serves the area just as a quick test to see what kind of response I get, if any. I felt it was $50 well spent as due diligence. Thanks again for your input. Fred

The seller is 2, going on 3, mortgage payments behind. The house is a Single Family Residence in a small town. The payoff is $68,000, not including a 2 year PPP of 6 months interest, or $3,450. The back payments, 2 months total $1,150. (Monthly payment is $575 plus $32 month real estate taxes) Repairs / Deferred Maintenance $2,400. After the repairs / maintenance is done, the house should market for $85,000 to $89,000. I am thinking a lease / purchase from the owner at $68,000., for 3 years. (PPP Eliminated) Lease the house for 24 months to a tenant buyer for $695 month, w/ option to purchase at $84,900, $5000 Non Refundable Option Fee. The way I see it, I will have zero out of pocket and $1450 in reserves, after the repairs are done, if the tenant buyer doesn't perform. Your thoughts, suggestions, constructive criticism, and caveats are greatly appreciated. Fred

I'm a real estate broker in the Indianapolis, Indiana area looking for hard money or a private investor to fund the following: The first deal is: $216,000 After Repaired Value $122,500 Purchase Price $12,725 Repairs $135,225 Loan Amount Needed (62% LTV) The second deal is: $139,000 After Repaired Value $99,000 Purchase Price $1,500 Repairs $95,000 Loan Amount Needed (68% LTV) The houses are both purchased in the name of my investment corporation. I have a long history of doing these types of real estate purchases and rehabs. I only purchase newer properties in nice neighborhoods that need major cosmetic renovations and/or minor structural repairs. We aren’t talking ghettos or slum lord neighborhoods. The average days on the market time in these areas are less than 90 days for maximum sales price. I would like for the loan to have no pre payment penalty as I do not hold these properties more than 6 months. If I can find an investor that I can work with, I would anticipate doing 12 to 25 of these deals in 2007. Thanks! Fred McIntire (317) 965-8034 Direct