DanielSun 7 Report post Posted April 30, 2014 I currently contracted a beautiful house available for rent to own near a lake, i am selling it for 20k less than what it could be worth, and I am kicking myself for it Here comes a family, with 10k downpayment, and their income can support the rent, but somewhat shy of affording the house. (rent is $1700, but to own this need to afford a monthly mortgage of roughly $2100) I know this, but they want it bad. So what would you do? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 30, 2014 Hello, Daniel. First question: why are you selling it for less than it's worth? I'm asking because you seem to be having second thoughts about doing so.As for the prospective t/b, what about extending the deal to give them more time to save for additional down payment when they apply for their mortgage? Have they sat down with a few mortgage brokers to go over various scenarios and possibilities? Knowing they love the property and are willing to put down $10K, it's time for everyone to put their heads together and find a way to make this work. Share this post Link to post Share on other sites
DanielSun 7 Report post Posted April 30, 2014 I am selling it for less because...well at first I was just trying to get this done quickly so I priced good. This property is 1 hour away drive from where I am so I didn't want to do a lot of work. soon I realized I priced it low, but I have already advertised the price to the buyers. the average price on the same area is 30k higher!! So it all comes down to my laziness. The owner is not willing to extend the lease, he lives 3 hours away from this! and thats the only reason he wants to get rid of it. I will advise them to see some brokers. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 30, 2014 $30K will cover a lot of round trips to the property. But if the deal gets done, it's a good deal nevertheless. I'm assuming it's a 12 month lease? If these folks are as excited as you say, they ought to run to some mortgage brokers to see how they can get financing. Good luck, Daniel! Share this post Link to post Share on other sites
DanielSun 7 Report post Posted April 30, 2014 It's 24 months. I always do at least 24 months, won't even touch 12 months. Thanks michael Share this post Link to post Share on other sites
MichaelC 160 Report post Posted April 30, 2014 24 months should give most t/b the opportunity to get their financing in order. But if this property is truly out of their price range, they need to find out now so as not to waste your time and their money. Bottom line: they need to sit down with a professional who can tell them what their prospects are for obtaining a mortgage. Share this post Link to post Share on other sites
DanielSun 7 Report post Posted May 1, 2014 lol I learned something that amazes me 1 month ago I contracted a townhouse in a good area, the townhouse needs about $5000 of cosmetic work, but I thought this is a $350k house selling at a good price, good term, nobody would mind the minor repairs. I brought probably 15 families to see it, nobody wanted it. I ended up cancel the agreement. This house near the lake has a beautiful surrounding, but the current tenant in there is no cooperating. He won't show the house to anyone else. Long story. But I had 2 families drive by the house, saw how beautiful the surrounding is, and they both want the house without seeing inside!! lol Share this post Link to post Share on other sites
MichaelC 160 Report post Posted May 1, 2014 Everyone wants to date the pretty girl, Daniel. 1 Share this post Link to post Share on other sites
pilot76180 51 Report post Posted July 17, 2014 DanielSun.... I go by the 43% rule just like FHA. If they can't do that, then you are putting the buyer in harms way. Share this post Link to post Share on other sites