OfflineHE I have a homeowner who was trying to sell her house. I called her and now she is trying to rent the house out! I was trying to found her a renter! After a week of this I called her today to ssee If she was willing to do a owner finance on the property and turns out that she will! The prop is a 3/2 with no rehab work to be done!I am going to get her to sign a option contract and market the house to find some one to put 5 to 10k down on the the house. Then I will take the option fee! The houe was rented out but now is not and it is move in ready! The taxes are paid and she owes 60,000 on the house and will take 70,000. So I am going to market the property for 84,000 and negotiable so the I can get the 5k to 10k option fee!
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Congrats to you and I know ur excited. Your post didnt ask any questions and that means your have a good handle on things. Btw, if you would add some information to your bio it would help us know who we are talking to, where you live and what your goals are. Not necessary, but network helpful. Best of luck on your deal and keep us updated.
Steve
Steve
We seldom get what we want, but we will always get what we expect.
Have you run comps on the property? What is the FMV of the prop. If houses in the area are selling for 100k or above, it might be a good move on your part to market the property under what the area is showing and proceed from there. Is the house free and clear? Have you figured in PITI and what the new buyer will have to pay monthly? Just some areas for you to consider...Jan
This is awesome Kris, I am glad to see you getting out there and making things happen!
It sounds like you are looking to do a lease option assignment on this one. I would stay away from "Owner Financing", because the owner wants more than she owes. In this case you will need to create a wrap around mortgage and it can be very complicated fast!
You basically want to sign an option contract with the seller for her asking price, and then start to market the property Rent-To-Own, because you will be doing a lease option with the tenant buyer. Make sure the seller knows you will be assigning your contract and keeping the down payment. Always give full disclosure on this! The tenant buyer should also know exactly what you are doing as well. If both parties are motivated, they won't care.
After you get your end buyer it's just reworking the numbers and the contracts. I always recommend having a lease and an option contract in place. Don't forget the lead paint disclosure either. Sometimes it's good just to check with an attorney or another investor in your area to make sure your doing everything correctly in your state.
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