Owner Financing Or Lease Option
Hello everyone! I need some help. I have an owner who is willing to owner finance a 3/1 house at $67,900 for 30yrs at 8% ($489). The house is in a good resale neighborhood and has been remodeled but is vacant . The owners inherited it and there is no mortgage. Sounds good so far but the down payment is $4000 and they are listed with a realtor who is basically not gonna cooperate with me unless he is a dual agent. I have been in this business for 3.5 years now but only done all cash transactions. Can someone help me with an offer? The house could sell for about $70,000 with a little touch up paint job on the outside and the owners are not in a desperate situation. 
Really would appreciate the help.
Since the real estate agent is not cooperative to your expectations, can you determine when the listing will expire. The agent will legally be out of the way and you can resume business with the seller. If this is a new listing, pass your ‘personal’ realtor a freebie and make them your buyers agent.
Option 1
Will the current owner inflate the price of the home in lieu of a down payment, if so, market the home and request a down payment from the lease option tenant/buyer. This will put money in your pocket right away.
Option 2
You can also create monthly cash flow for 30 years, from the ORIGINAL owners financing. Example: The proposed deal is: 67,900 @ 8% = $498 while after a great marketing campaign ad stating: (Motivated Seller - - Owner Financing) the tenant buyers sales price is $77,900 @ 9.5% = $655. With a $4K down payment from the buyer. Over the life of the loan the total interest paid would be $157,901.50.
Eric & Rosa
[addsig]
I'm not sure as to why you're even considering the deal. Owners are willing to sell for $67,500 but after some paint you can only sell for about $70,000?
Exactly where is your profit? $2,500 minus painting, minus closing costs, minus any reduction in selling price? Doesn't sound like a lot of $$$ will be going into your pocket.
Of course, I may be missing something.
Roger
Thanks for your replies. The realtor says the owner needs some cash up front in order to owner finance. Of course his suggestion to them is $4000 so he can get his commission. So should I just lease the property with right to sublease in order to avoid the ownership worry about no money down? I am interested because I am looking more for the monthly cashflow (can rent for $700mth).
I dont understand - why dont you just buy it and pay the 4000 down payment?
I dont have the down payment that is the issue. I am trying to find out if anyone knows any good strategies I could use to make the deal work with out having the $4000.
How did you structure your all cash deals before? Is there a reason that you can't do it again?
No offense, but it seems to me that you've got your eye set on the property and not the deal. The deal is the most important part of REI.
Think about it. You're trying to buy a property at full FMV (or above depending on repairs) and are still having trouble with the deal. Personally, I'd move on.
However, if you can't get your 'all cash' offer on the table, the next best thing is to get ALL of the dealmakers to the same table at the SAME time (ie the owners, you, and the RE agent). Work the deal out or not. Either way, its over quickly.
Roger
I agree with rajwarrior. It is difficult to deal / negotiate with sellers that aren't desperate. The realtor seems to be throwing a kink in this deal, too. Furthermore, there doesn't seem to be a lot of money in it for you.
It seems you have your heart set on this property, so you still can:
Keep an eye on it. Perhaps if it sits on the market for awhile, they will be willing to negotiate.
Have you talked with seller directly to see when the lsiting expires?
Submit an offer that you are comfortable with. So what if you make it no money down?You never know until you try.
Good Luck!