Need Advice On A Deal:)
Hey folks,
Need advice on a possible deal. This is an update ot my previous e-mail.
Investor from here in Bloomington, IN owns a house that he acquired subject-to approximately 3 months ago. Investor is now moving out of area and wants to get rid of property.
Loan is $130,000 @ 8%. Appraised value is $140,000. Payment is $900 per month. There is also a 1% pre-payment penalty on the $130,000 loan ($1,300). The investor has had the property for 3 months and has been unbale to fill it. He has been asking $5,000 option consideration up front, $1,095 lease payment, and $149,900 price.
He wants to assign me the beneficial interest in the trust that the property is in for "a few thousand dollars".
What should I offer this guy for the property?
Thanks
JohnM
JohnM,
Who do you think needs the deal more? It sounds like he needs you more than you need him. He's moving out of the area. I wouldn't feel obligated to offer him more than $1,000 to take over his position. If he leaves the appliances, and leaves the place clean.
While Lease Options are a great tool, when you are setting the terms,
if you're dealing with another investor, it is not the best way to purchase property. He's doing it right, that means that he's making the money. Whats left for you?
Good Luck,
Jeff
By my calculation the deal is worthless. Offer to take him to dinner. Maybe pay him $250.
Give him $500-1000 AFTER you get your option money.
Why hasn't he been able to sell it on a l/o?
What is your exit stratergy should you buy it?
lil-pa
Thanks for the feedback and for kick-starting my brain on this deal. I have decided to back out on it. I would have been taking on his problem any way you look at it.
Again, thanks for your help
Sincerely,
JohnMP