Guest realestateprofit Report post Posted March 30, 2003 Hi all, I've been receiving a lot of leads from motivated sellers. Here is one that I am currently working with: SFR 4 bedroom 2 1/2 bath 3400 square two story. Good condition. Nice neighborhood. Owner owes 116k balance and house is valued between 140-148K. I don't think she'd be willing to do a L/O...at least not yet. Here's what I am thinking of doing. I offer her a cash price of 122k. With the house in my possesion I then proceed to L/O to a t/b. 122k purchase price140-148 FMV = 18 to 26k in equity (this part I like b/c I can use the money for other investments) Has anyone done this before and if not do you think this would be a legitimate way to L/O? Any problems tha tyou can think of? Thanks in advance! Vic Share this post Link to post Share on other sites
-Tony- 0 Report post Posted March 30, 2003 realestateprofit, seeing MichaelC is out of town. I thought this might help. I had a similar Question Tony Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 31, 2003 Hello, Vic. Based on the limited info you presented it appears the numbers work. It isn't a great deal, but if you're assessment is accurate you would have an immediate equity position in the $20K range. You could then turn and market the property as a lease option as you described, probably in the low $150's if you are offering it with terms. Share this post Link to post Share on other sites
chitown83 0 Report post Posted March 31, 2003 I just have 1 question. You say that you will offer he 122 cash and then possibly put a T/B in the property. If you have 122K cash why would you want to tie all of that money up in 1 property? Maybe I am missing something and am confused, if not it would seem that all that cash could bring you better opportunities. Good luck with what you do. Jim Schultz Share this post Link to post Share on other sites
-Tony- 0 Report post Posted March 31, 2003 chitown83, Cash dosen't mean his cash it may be i.e. a mortgage ccompany Tony Share this post Link to post Share on other sites
