OfflineI have a person who aproach me to find someone to buy there home on a assumable loan at $126000 and it only worth $99000 there willing to pay all closing cost and pay out $15000 thousand to the person that assume the loans which will leave one who assume the loan with home worth only $99000 with $15000 in there pocket but still oweing more on the there new house. The owners said the person has to have good credit to do this. I need a better way to approach this so ican doit myself. So iwas thinking to offer a lease option with the 126000 owed as the price a 5-7 year lease with $15000 still offered to me to fixed up property for future purchase and cashed out at 126000 at the end of contract looking for other stratergies please respond
Blessed
This is a great possibility. The biggest thing you want to ask yourself is will this market (and property) appreciate in the 5-7 year time frame? If all of the signs point toward appreciation then I would say go for it with the terms you are outlining. If it doesn't look like you will have an asset worth much more than the 126k after 5 years then I would walk away. I can't imagine a property not appreciating in that time frame but you want to check out the housing market forecast to be sure.
Good luck!
Chris
"Faith is the eternal elixir which gives life, power, and action to the impulse of thought.
"Faith is the starting point of all accumulation of riches!"
- Napoleon Hill, Think and Grow Rich
Your exit strategy of hopefully the market appreciating isn't a very good strategy. But if the seller is willing to give you the option i Think that would be fine. He give you 15K to purchase the home, which is unheard of by a seller.
Are you going to live in the property or planning to rent it or lease option it out? If you are going to rent it how much cash flow will you have. I would make sure you can bring in enough on the investment of a rental to make my decision, not on the appreciation. never speculate! But if it works as a rental or LO, then go for it you can't lose.
Thanks
Mikessler
Advisor
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