To All Those Who Have More Experience Than Me…
Hello Friends,
I came across motivated seller today who would like to do lease option. Please help me to structure this deal so I could present him an offer.
Here are the numbers:
Single Family house completely remodeled and listed with an agent. Have been on the market about 4 months. 3 bedroom, 2 bathroom and 2 car garage.
Appraised Value: $215,000
Current Asking Price: $215,000
First Loan Balance: $172,000
1st loan rate: 5.875%
1st loan payment: $842.08 (interest only)
2nd loan balance: $22,400
2nd loan rate: 4.75%
2nd loan payment: $116.85 (interest only)
Arrears: $0.00
How can I structure this transaction? Just some ideas please.
Thank you!!!!!!!!!!
If he is asking full price he is NOT a motivated seller. Are you looking to L/O this home for you or to make money?
I would offer him a subject to deal and even then it is a bit thin. Plus I would have him get rid of the Real Estate agent.
You could make some money on this, but I am not sure it is worth the trouble unless the seller has more motivation.
What makes you say he is motivated in the first place?
Thanks for your reply!
The seller told me that he is motivated to sell because he bought the property to remodel and sell, but it is not selling and he was not able to rent it, so he has $900+ negative cash flow.
I am not going to live in the property. I would find a renter buyer.
The point was, if they're asking 215k and it's worth 215k, it's not a motivated seller. Now if you could take over the loan and begin making payments for them, basically buying for 194k, then it's a motivated seller, but still not a great deal, unless you can LO it to a buyer for 230k, charging $1300 month.
Quote:
On 2004-12-02 00:49, tomazas wrote:
Thanks for your reply!
The seller told me that he is motivated to sell because he bought the property to remodel and sell, but it is not selling and he was not able to rent it, so he has $900+ negative cash flow.
I am not going to live in the property. I would find a renter buyer.
You'll find better deals dealing directly with FSBOs and avoiding listed property.
[addsig]
THis is definately a deal to pass by. First, there is NO way the house is worth 215k! If it was worth 215, it would have been sold in the 4 months it has been on the market.
If you really like the property and believe you can succeed where someone else has failed; then encourage the seller to remove the agent and discuss a direct purchase.
If he removes the agent, you can probably work out a wrap loan for 100% financing - but don;t pay over 200k since this would have been the highest net he likely would have received with a realtor.