Trying to put my first deal together

[dee 0]

I am trying to remember to start a new thread, with my new questions.

 

FSBO - asking $140,000 (owes- $101,000, 6.7% adjustable rate, adjusting in 9/07)has PP(she did not realise that.

 

zwillow.com sas the house estamites around $133,000.

Profit

 

sellsP--- $130,000

Tb PP $143,000 12mo. lo $13,000

 

Sellers PITI $800.00

TB - $1200.00 $4800 ann.

 

Crediting back

Option Fee $4300.00

 

Total $22,100 useable money through out the yr.

 

Credit back $ 4300 Option money

$200 of mo. rent $2400 Rent Credit

 

Total credit towards purchase is $ 6700.00

 

Time to exercise Option tb close $143,000

less credit - 6700 Off SP or towards CCost

Fin 136,300

 

I need to do a Release of the Option for a fee

Tb closing 136,300

 

Close with Sellers $130,000

 

My fee to release Option? $6,300

 

For the most part have I figured this right???

 

By the way the sellers want to buy a new home. So.... I found a guy that 2 brand new homes that he needs to move.

It still needs dirt work to be leveled out the mound of dirt their, sod and landscaping.

 

He is asking $193K, he purchased it for $179K financed $161K @ 6.875 5 yr arm.

There is a new house across the street nicer looking and landscaped for $210K

I know he needs out from under the payments, I was thinking along the lines of offering a LO for $185K, for up to 3 yrs.

Relieve him of that monthly debt, put a TB in there for a 12 or 24 mo LO for $210K. But I really do not want to be out any money from my pocket for the dirt work and landscaping.

 

What do you think??

[dee 0]

I hope that I did not make this confussing to everyone.

 

I have a mission! I need and will make this business work. Just need a little reasurance that I am on the right track. Putting the numbers together and all.

 

Please, I need advise, good bad or ugly .

 

Thank you all

[Jonathan RexfordFL 8]

You will not need to use any release fee for option.

[dee 0]

You will not need to use any release fee for option.

 

So... how do I get my money and walk way from the deal, and let the transaction of purchase be between the ower/seller and the TB.

I thought I would have to sign something to release me from the contract I have with the Seller, & release the memorandum or some other release form??

 

I need to go back and read some of the other threads.... I have missed something...

 

Thank You

[Jonathan RexfordFL 8]

I am assuming that you are doing a Lease option from seller and then you are in the middle for the term. If not then just assign the agreement based on they CA agreement that you are established with the seller. When tenant buyer is found and approved by seller you get paid.

 

When you are in the middle then you will be paid when it sells.

 

Double close.

You can get memorandum and get money then. Seasoning should not be an issue.