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Learning and Burning

Balance and payments only

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I have come across a seller that just wants what he owe's for the house and the payments to be covered, I will meet with him tomorrow and so need to know what numbers to put into the agreement. He owe's $132.000 and payments of $1100,00 per month. That is all he wants and looking at a three year agreement. I am not sure how it plays out if i put the balance as the purchase price? But not sure there is another way?

Thanks Again,

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Are you looking to purchase the property outright, seller financing, conventional financing, a lease option of some kind, etc. Then, what are your plans on the other side? Buy and hold, flip it, etc? Some details, Mike.

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My first thoughts are a lease option and thats what i was working. So yes the scenario first. I come across sellers that want only to get the house off there plate payments and balance so to speak. Balances with little room for sale today price, but with time im banking will turn more in my favor. No activity with realtors for sale or rent and out of town owners. Now with the details how would you look at this deal and where would you go with it? I am looking at these with lease option eyes and would like to hear how you all would see such a scenario?

 

Learning and burning.

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Mike, what is your estimate of the property's value, and what will it rent for?

The longer the term, the better for you, of course. 36 months is good, 48 or 60 even better. Any appreciation that kicks in over the lease is yours, obviously. If the market unexpectedly tanks, you can always hand the keys back to the owner at the end of the lease and walk away. In the meantime, you've been receiving cash flow. . .assuming his $1,100 monthly that you took over is below market rent.

As for purchase price, you can always set it up so the payoff balance at closing the price. Just be sure to confirm before hand what his balance is presently.

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As of this month balance is $98,000 my estimated value is $105 give or take, for todays market. in 36 to 60 months there will not be much movement for a big gain. So time is the Money factor for this one as i see it. So in the Lease with option to purchase agreement line 13 c i will put pay off balance at time of closing seeing that is all the seller is asking for? Also in line 19 b escrow as follows, what do i put in this spot? Not sure what to put there.

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