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I am closing a short sale on the 28th of this month. I'm buying it for $109,200, appraised at $136,000 and 2 other comparable properties sold within the last 6 months for $144,500 and $141,500. My mortgage payment is going to be roughly $450 (interest only) and I have 2 renters that will pay me $999. My repairs are only $3,600 and closing cost of $3,300. Today I found a person interested in a lease option that would pay me a $4,550 non-refundable deposit and $799 per month. My sale price to her during or before the expiration of the agreement would be $135,900. I also have a no seasoning loan so I was thinking about doing the repairs and then selling it for a quick sale of $129,900. So I really have three exit strategies. What do you think would be the best route to take?

Comments(5)

  • TheShortSalePro20th July, 2004

    In my opinion, take the route that results in the fastest turnaround.... in other words, take the money and run.

  • homebuyer1320th July, 2004

    So you're saying do the lease option?

  • feltman20th July, 2004

    I don't there is any true decision to be made here; take the lease option - even better if you can add your closing costs to the loan.

    Think about setting your price to increase every 12 months - $135900 for 12 months; then $138,600 from 13 to 24 months (a 2% increase); just explain the current value is $141k +/- and going UP - nearly ANYONE making a $800 a month payment ON TIME will easily qualify for a loan to excersize a lease option after 12 months.

    Please let us know what you decide!

  • TheShortSalePro21st July, 2004

    In my opinion, I would do the repairs, market it to sell fast, sell it, then take the money and onto your next deal (which you should be working on now).

  • homebuyer1321st July, 2004

    I have 2 other deals in the pipeline and have even taken on a few clients that I'm negotiating short sales for. From my experience I have learned that the best deals are those without a lot of obstacles to overcome such as multiple mortgages, unmotivated sellers or lenders, etc.

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