Lease Option Deal
Having a meeting with a potential seller tomorrow
he contacted me about purchasing is home. The house is vacant, it was paid off - but he refied 2 years ago for 72,000 at 9% - now he just want to get out of the property. The ARV is arround 85-88K.. To me its not enough equity for me to buy him out - But over the phone is was willing to consider a lease option. It will need some work to get it FMV condition.
Our initial conversations - was that I would take care of all repairs, upgrades.
I want to structure the deal where we only pay a portion of the his monthly payments. so that can afford to put a qualified tenant buyer in the property and have some cash flow -
it would benefit him for the short term - lowering his monthly expenses , he will have is property take care off - and lastly he will be able to have this property sold with in 6 months to a year.
My only concern is how do I protect myself from the money I put in the property to get in FM condition -
-I was thinking a could put a clause it the agreement
if he breaks the lease agreement he would have to
pay me for all repairs-
Or I was thinking I can do a sale and purchase aggreement and lock the property of for a year.
Can I do a sale and purchase agreement and lease option at the same time. I want to control the property for at least year - but have it agreed that if I want to buy the property with in a year -it will be for the pay off amount of his loan at that time, or just put that in our lease option contract
Any thoughts
thanks in Advance
Comments(0)