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Mastamike6

Owner Finance

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This may seem like a juvenile question but I need some help on putting this deal together. Currently I have a lease option agreement with a homeowner for $298,000 purchase price, $1300/month rent. I was planning on doing a CA on it. I just received an offer requesting to owner finance the house with 10% down and a 5 year balloon payment cashing her out. Buyer is self employed with a successful construction company and has the money to put down, but he has not been in business long enough to qualify for a mortgage. How can I structure this deal with the homeowner and still receive my assignment fee? Pure option? Any feedback would be helpful, thank you!

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Is the offer from the homeowner or a T/B wanting to buy with OF?

 

You could resell on a Wrap, increasing both the price and interest rate to your buyer, making a spread on both.

 

Lynn FL)

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Aother is a Contract for Deed with a 5 year balloon. Be a consultant and split the 10% with the owner.

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Mike, you can also go with a Pure Option, as you mentioned. Lock in your best price with the homeowner and then assign you option to the buyer for an agreed to assignment fee. You're out of the deal, cash in hand, and on to bigger and better things.

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Convert your option to a purchase and sales agreement (P&S)...

Then..

 

Buy the House for X.. (sub2 or sub3)

Sell the House on a wrap...

 

Collect not just an assignment fee...

But....

 

The front... the middle... and the back end...

 

Why make what realtor makes... when you can

make what an investor makes...

 

Oh yeah... and get rid of the balloon...

 

Instead insert a rising interest rate...

 

David Alexander

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