tara.lancaster 0 Report post Posted June 6, 2007 My name is Tara. I've been reading many of your postings and it seems as if you're seasoned and good at what you do so I would like to get your opinion about something. I started trying to get my feet wet in real estate a little over a year ago and met my mentor, Clair McManigal, and learned many things from him, but he became ill some time ago and has been ordered by the doctor to rest. Here's the situation: I contacted a couple back in Jan about a house they had posted for sale for $101,500. I approached them about doing a lease option on the property and they contacted me and said they would do it for 18 months with $3,000 down and $825 per month. I think that's a little steep so I stepped away. Well here it is June and the home is still advertised for sale for the same price. I went to the county assessor's website and got the following information: The purchased the home for $85,000 in July 05. The assessor's appraisal on the home is $91,460. I believe the couple purchased another home and currently have two mortgage payments. I want to contact them again about doing a lease option on the property. How should I construct this deal? What I want to do if I get the property is put someone in the home and let them cash me out of find someone that will buy it from me sooner. Thanks in advance for your input. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 6, 2007 Tara, it is now six months after your initial contact and the property is still available. If they aren't motivated by now, they never will be. Another offer is in order, but before doing so you must determine, accurately, the value of the home. The assessor's estimate is usually inaccurate. You need to get hold of recent sales activity. Once you have that, do the same for the local rental market. What will the house rent for? With this info in hand you are now ready to make an offer. You want time: the longer, the better. You want to get in light: preferably nothing down, (it happens more often than you think), or perhaps a month's rent. But even this isn't payable until you collect option money from your t/b. And you want a price that will give you a spread so you can sell for a higher price to your t/b.All in all, if the owners dig in their heels and fight you tooth and nail, they aren't motivated to sell. Don't fight 'em. Move on. Share this post Link to post Share on other sites
Tantric Realty 0 Report post Posted June 7, 2007 I would heed MC's advice, 3K down is not acceptable, especially when that's probably all you will get from a TB. (You Don't Work For Free). Though I only have 1 deal under me, I was prepared if the seller were to talk about Option Fees, just turn the conversation around... like "oh, you mean like a security deposit? yeah sure, what do those go for these days? about a month's rent...I can do that, once I find a Qualified Buyer, you will get the deposit"? Share this post Link to post Share on other sites
