OfflineI would love some advise on the best route for me to take on some brand new homes.They were built in 2007.1400sqft/4bd/2ba.Recently selling for $120,000 and just dropped to $85,000.The payment on the home would be very low and the bank will take zero down and do lease options.I was told that putting some renters in there would be great cash flow.The area is growing and defenitly has potential to keep growing.Lots of passing traffic through the town,because of the 2 city's between it.I'm running some ghost ads to see if I get any renters to bite on it.
I'm trying hard to get my first deal and have been trying to get an assignment done to pay down my credit cards,but I know this is a great opportunity to get some positive cash flow for myself.I just need advise on structuring a good deal that won't affect me if I can't keep renters in the home.
Any thoughts would be great and also help other newbie's see the creative way's you guy's come up with.
Thanks
DGFAM IS AWESOME
Jason S.
San Diego, CA.
**All CASH House Buyer!**
Refer Us To Neighbors, Friends & Family, Earn $1,000
LIKE my FB page http://www.facebook.com/JandBHouseSolutions
Wow! What a great deal you have going on here. I would sign that lease option with the bank ASAP. Then I would go out and find a buyer/Tenant willing to do a lease with the option to buy. Say for instant you run an ad on Craig’s list.
Rent to Own a Brand New Home $5,000 down $1,000 a month payment, with no bank Qual.
You do not have to give the bank any money down so you will have $5,000 in your pocket immediately and then what are you going to pay to the bank each month for the lease? Let’s say you have to pay the bank $900 a month then charge the buyer/tenant $1,000. Now you have the option to buy the property from the bank at $85,000 in 24 months turn around and give the option to your buyer/tenant to buy it at $120,000 in 12 months.
This is a huge profit
$5,000 on the front end
$100 a month for 12 months = $1,200
Sales price of $120,000 you only paid $85,000 $35,000 profit.
Total profit = $41,200
Recently selling at 120K is another way to say "no longer selling at 120"... You can set your LO there but your TB wont get financed unless the property actually appraises for 120 in a year.
If you know that the bank will accept 85 then you gotta offer less. Quite a bit less.
It is amazing me that you are always right there with solid kick**s advice whenever someone needs it.
I am hoping that you can help me out with something soon too.
Angela
I'll say go with the lease option, keep it simple.
"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." — Peter F. Drucker