Heres a situation

[Bradley 0]

theres a house for $149,000 and he wants a down payment of $6,000 and he will assume the mortgage. Can I work this into a Lease Option?

[Mr Saint 0]

and he will assume the mortgage. Can I work this into a Lease Option?

...you mean the owner will finance the deal??

[JerseyJeff 0]

When you say "Owner will finance" or "Owner financing" does that mean, if I wanted to buy the house, I wouldn't have to go through a bank, I would just pay the owner of the home the mortgage?

 

jerseyJeff

[Bradley 0]

K sorry guys this is what I menat,

S.NUTANA - 1000 sq. ft., 3+1 Bdrm w/3/4 bath, f/s, d/w. 140 Middleton Cres. $117,500 or $6000 down & assume Mtg. To view call 374-5081 or 260-6110. No agents.

 

can i Make a lease option with jsut assumeing the house?

[Mr Saint 0]

Yes you can make a L/O work when you take over someone's payments. However, there really isn't enough information here to determine if this is a good deal or not. From the ad, it sounds like this guy may be somewhat motivated and you already know he's open to being creative (owner financing). Give him a call, you never know, he may be up for a straight sandwich L/O or it may work out to assume the mortgage.

 

Good luck!

[-Tony- 0]

Bradley,

 

I see 2 possibilities here

• he is truly motivated
  
• he is an other investor selling a house he took sub 2
  

Questions: What is the fmv of the property? 149k?

he wants 117.5k or 6k down and assume (sub 2)?

What is the payoff on the house?

Are there any other liens on the property?

Is the house in disrepair?

how much are his payments and interest rate?

Do you have the 6k to put down or can you refinance?

if not would he be open to something more creative like 3k down $250 a month for twelve month?

or 3k down with 4k when you refinance?

How motivated is he?

 

sounds like he is a motivated seller and you may not make much of anything up front (unless you Sell outright) but the back end looks good. you may even have a nice middle depending on mtg. and what you can get for rent.

 

just a little more info would help ! ! ! !

[MichaelC 160]

just a little more info would help

Like Tony said, Bradley. What is this $149K you speak of?

[Bradley 0]

Ok guys here it is

asking price is $117,000

she wants $117 k or a $6,000 down and assume

she has $109,000 left she owes on it

 

 

Looked at it today very nice house, lol anyways

 

rent in that area is around $900 per month

tax permonth $172

Mgt payments $840

utilites about $200

 

house is clear, no liens

 

I guess i am very confused on the part about the $6,000 down up front?

 

There it is?

[Bradley 0]

ok the numbers dont add up because of the rent amount.

I am guessing that I house in that area would rent out for like $1,200

So say I would rent it for $1,500 that would be roughly $1,200 for all the payments and leave about $200 left over.

 

 

but now im left witht the $6,000 confusing me?

[-Tony- 0]

Bradley,

Okay basically she needs 6k of her equity...still good for you if it is worth 149k (desperately motivated)

 

for 6k your buying 34k in equity....you will get the deed to the property for 6k BUT you will have to make her mortgage payments...check with her on the tax per month it may be added into her mtg and don't worry about the utilities the t/b will pay for their own

 

congrats

[MichaelC 160]

Bradley, the homeowner is asking for $6K down. So, if you were to give her what she is asking for, you would need to come up with that amount of money. Then, you would receive title/deed to the property, and take over her existing mortgage payments. Sounds to me like she is offering an assumption of her mortgage. Not a bad way to go if the numbers add up.

But, here is my concern. You say the montly rent in the area is about $900. But your monthly obligations appear to be higher, resulting in a negative monthly cash flow. Are you prepared to deal with this?

[-Tony- 0]

Bradley,

 

what are the comps in that area? where did you get the 149k from? What is her true equity? What is the average time it takes for a seller to sell (you can use this in your negotiations)? hows the carpet and paint any repairs any thing to knock the 6k down....