Possible Opportunity
I need some help guys!
I have a friend who is currently in the process of trying to purchase a home. Unfortunatly her debt ratio will not allow her to qualify for a mortgage. I know that the seller is motivated because he already had a deal fall through. I would likte to talk to him and see if I can get the house as a lease option and than rent it out to my friend for two years until she can afford to buy it. What do you all think??? How can I structure this deal?? I only know the basics of how this type of deal could work. How much would you normally ask for down?
It's possible that a motivated seller would agree to this. There are others in this forum who could tell you how to structure the deal better than I, but I will offer my two cents anyway.<g>
Serving as a financial middleman for a friend can be one of the fastest ways to lose a friend. What if your friend still doesn't qualify for a mortgage in two years? Or what if her debt load interferes with her ability to pay her rent on time?
Not trying to be negative. None of this may happen, but it would make me nervous. If all you want to do is help your friend, have the seller directly negotiate with your friend. They could do a lease option or a land contract. You could help your friend work out a good deal, but you wouldn't get caught in the middle if something went wrong.
Just my two cents...
Amelia
I must agree.
Talk with the seller. Maybe you can get a small fee for helping the deal go through. Maybe you can get a fee from your friend for helping with negotiating. If there is not much in the deal, you could be getting in deeper than you want.
Be happy with a small fee from one or both parties. They will be glad you helped, you will make a little, everyone happy.