Learning and Burning 11 Report post Posted January 14, 2013 Happy New Year All.Got this s.l.o deal, and the place needs work. Place is nice and livable but needs work. Buyer has seen it wants it but feels more secure for doing the work to it that he wants to have more of a steak then lease with option to buy. Seller is open to such,so now the What do i do to get him his securiity for such? And give seller her security? and keep me in the deal. Im working on the get in and get out part now. No more s.l.o now dine and dash.Staying Hungry.... Thanks again.... Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 14, 2013 If I understand you, (and it's Happy Hour here, so I'm not sure that I do), the potential buyer in the deal plans on doing some needed repairs and so he doesn't want to run the risk of putting cash and sweat in the deal and not end up with title to the property. Is that about it?1) Are both parties on the same page about this? If so, what has been discussed about keeping everyone happy?2) Can the buyer get financing, or is the property in disrepair to the extent that no lender will go near it?3) Since you have an existing agreement in place with the owner, you're protected in the deal, correct? Share this post Link to post Share on other sites
Learning and Burning 11 Report post Posted January 15, 2013 Don't think the house will finance. Seller is widowed and would like to sell. She's open to getting something done. Been trying to sell herself. Looking to talk with her to tonight about such. Yes buyer wants to do the deal but has concernes as mentioned. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 15, 2013 The tenant/buyers concerns are understandable. Never repair a property you don't have title to. Does the owner understand that the house can't be financed in present condition? Would she be open to some short term owner financing? A land contract, perhaps? Share this post Link to post Share on other sites
Learning and Burning 11 Report post Posted January 15, 2013 I do have lease with option and $5.00 at steak on my end. Share this post Link to post Share on other sites
Learning and Burning 11 Report post Posted January 15, 2013 I'm wanting scenarios to run by her that make sence for everybody She want a deal done... How would that one work? Share this post Link to post Share on other sites
<Steve> 82 Report post Posted January 15, 2013 hmmm You could record a memorandum of option to secure the tenant/buyer in the deal. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 15, 2013 What is the existing financing on the property, by the way? Share this post Link to post Share on other sites
Learning and Burning 11 Report post Posted January 15, 2013 Owned free and clear Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 15, 2013 That's ideal. As an example, the owner can offer a short term loan with an agreed to amount down, amortized over 15 years and a two year balloon. Of course, all numbers are negotiable.But this would give the buyer the opportunity to purchase the property and the seller gets the monkey off her back. In the meantime, the new buyer makes the necessary repairs and increases the value of the property, making a refi with the bank more likely. Once he refinances, the seller is cashed out. Share this post Link to post Share on other sites
Learning and Burning 11 Report post Posted January 15, 2013 So, example.Price. 115,000 $ 5,000 downAmortized over 20 years with a balloon in 3 years. @5% Buyer to do all repairs etc, by that time to get financing.So, for writing this up and how i get paid now, is from the down $? As i was looking to get 2-3 k of that origally. Then im out of the deal.And how would i write tihis up? What contract? and it gets recorded as a ? with the county.You know the old C.Y.O.A that my mom mumma told me bout. Learning waiting to get burning on this one. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 15, 2013 Since your changing the deal in midstream, your payment isn't as cut and dry as it once was. Has anything been discussed with the seller about this? You aren't being unreasonable at all, earning $3K for your smarts and effort. If a licensed Agent were in the middle, the seller would be paying double that amount.There are a number of ways you can protect your position. I think the easiest would be to first reach a verbal agreement with the seller. Then scratch out a simple Promissory Note that states she owes you $3K upon receipt of down payment from buyer. Call it a marketing fee and you should be good to go. Share this post Link to post Share on other sites
Learning and Burning 11 Report post Posted January 15, 2013 So she signs a purchase contract with stipulated terms with buyer . That's between them or do I have what they need ? I get a signed prommissory note. Get paid and get another one. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 15, 2013 That's definitely between homeowner and buyer. You're not a licensed Broker and you don't want to behave like one. They agree to terms, they deal with the paperwork. You have a Promissory Note on the side. When the deal goes down and the down payment is made, you collect your marketing fee and move on. Share this post Link to post Share on other sites
Learning and Burning 11 Report post Posted January 16, 2013 I dont want to put myself in any situation that gets me grief. So wont be acting as what im not and wont even do it on T.V.So, that guy wants to do an inspection and is making this more difficult then needs be i Think. One of those types.Now got another buyer interested for a lease with option to buy. Seller has agreed to terms, but now i will be simply handing over my tenant buyer to her for a fee then im out. I have a lease with option with seller. She has agreed to take less then original contract $110,00 to $99,000 same terms and monthly. And now i am wondering what i need to have signed? with who? and be able to walk away HAPPY.... Keepin on..... Share this post Link to post Share on other sites