OfflineI have a owner that we have been going back and forth for a month now. She has a property that is 3/1.5 and it is free and clear. The property is worth 56k and she was asking 30k all cash! I told her that I would take the property for 30k on a lease purchase owner finance.
Here is the offer:
30,000
5 yrs
4% interest
payments for 60 months
with 10% down
We are working out the monthly payments now, I need the payments to be 450 or less and I can rent it out for 850 a month! But I don't have the 3k to put down. I have a investor that will take it but he is not going to put down no more than 3k for the property! Man I need help!
__________________
and ask her if you can reduce the down payment to 5% ($1500) and add the rest into the monthly payments. That would work out to be an extra $25 a month you would have to pay.
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
Real Estate Glossary - Click Here for PDF
View My Everyday Blog - Click Here
the investor will put down 3K? so you do have the 3K to give to the seller? that still leaves you with about $400/month for putting the deal together.
wishing you success,
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
If you can, advertise for a Lease/option tenant in advance than you can get the option-down payment from the tenant. You get $5,000.00 down from your tenant/buyer-you pay the seller $3000.00 and you make $2,000.00 to start the deal.Than you also make a monthly positive cash flow because you are getting $850.00 per month and you are only paying $450.00 ,than of course you are selling the property for say $56,000.00 at the end. You make money at the beginning/option-down, In the middle -monthly cash flow and at the end when your tenant/buyer purchases. This is how we structure no money down...No money out of our pocket. Usually when we do a lease option we do not use a interest rate. We negotiate the best monthly payment we can and than we ask for a monthly rent credit. say you pay $450.00 per month rent and you ask for 50% of the rent to be credited towards the purchase.
Good luck to you.
John and Julie Wakefield
JCW Properties, LLC