Advice
Hi everyone,
I need some advice, this might be a little www.long.I talked to a rehaber today he
has a house he will L/o.Here's what he offers 3 year l/o no proplem wants 5000 dn
1250 mon rent 250 rent credit l/o is 172,500
cash 169,500 said home is in move in www.cond.good neighborhood.(problem he needs the 5000 down I asked if he could wait till I get t/b he said he couldn't.Trying to do this with nothing out of pocket.He told me
he knows all about l/o's.I think he realy
wants me to have put in so I have something
to loose.Any help would be greatly appreciated.Have a good day everyone.
I haven't done a sandwich Lease Option, but will share my 2 cents. If you can get a $5,000 option payment from a tenant buyer, you would be all set with no money down. Do you have buyers lined up? Another thought is that as I understand the sandwich lease option, you really only want to do this when you can get the property at a large discount, from a motivated seller. If he is already giving you an appreciated purchase price, and inflated rent, you will have a hard time getting cash flow and appreciation out of the property. Your option price should be at today's prices and your rent should be market rent. This allows you to option it to a tenant buyer with 24 months appreciation and charge 110% of market rent.
Hope that helps - Good luck!
Mike
Hi Lansinginvester,
Thanks for the www.reply.The
jest of this thread is he wants me to have a risk 5,000 dollars worth till iI find a tenant www.buyer.That is a risk I don't take.He
won't take the 5,000 increase in price he wants it www.upfront.I could recoup the money and
still make a profit,and still get fmr or better.But I want to go NO MONEY from me.
Thanks and have a good day.
You could ask him to carry paper for the 5k. If it's a risk he is looking for, do a note for 5k, either interest only payments, or set-up a balloon payment at 24 months for the 5k, you would pay this when your tenant buyer purchases the property, if not, you refinance and cash him out. If he balks at this, he may really need the cash, but is trying to make it look like he just wants you to have some cash at risk.