OfflineGoing to check out a possible lease option tomorrow. I am so nervous. This is the first deal that i am working on. Its a 1120 sq ft house with 3 bedrooms. Could use some work but it is in rent able shape. The owners are looking for $40000 out of the property but are willing to accept less. The monthly payment would be around 560 to them. Could really use some help on this if anyone out there is willing. I told the owners i would need between 30-60 days to put any money down on the place. They said that would be possible but would want around 3000 down. here is the craigslist ad for the property:
HOUSE FOR SALE FOR 40,000.00 CASH OR WILL SELL ON CONTRACT for 2,000.00 DOWN AND 550.00 PER MONTH OR FOR 3000.00 DOWN AND $530.00 PER MONTH FOR 9 YEARS , OR 4000.00 DOWN AND 520.00 PER MONTH, OR 5000.00 DOWN AND 510.00 PER MONTH, OWN YOUR OWN HOME IN 9 YEARS AND STOP PAYING RENT NOW. AND THE HOUSE WILL BE YOURS. 3 BEDROOM WITH ONE BATH HOUSE THAT HAD SOME REMODELING DONE TO IT A FEW YEARS BACK. YOU CAN PUT DOWN A BIGGER DOWN PAYMENT AND PAY SMALLER MONTHLY PAYMENTS IF YOU WISH. 1120 SFT. CITY LOT WITH HOUSE HAVING ENCLOSED FRONT PORCH. CARPETED IN 2011. HARDWOOD FLOORS UNDERNEATH. ALL ELECTRIC FURNACE WORKS GREAT. READY TO MOVE IN CONDITION.PUT DOWN PAYMENT TODAY AND MOVE IN TODAY. NEW WATER HEATER AND PLUMBING TOTALLY REDONE UNDER THE HOUSE IN 2011. SOME MINOR ELECTRICAL WORK WAS DONE IN 2011. TWO AIR CONDITIONERS COME WITH THE HOUSE. PROPERTY TAXES ARE ABOUT $40.00 PER MONTH OR ABOUT $500.00 PER YEAR. ACCESSED VALUE OF THE PROPERTY IS HIGHER THAN THE SALE PRICE OF THIS HOME. HOUSE COMES WITH A KITCHEN TABLE AND VACCUUM AND 2 A/C UNITS. CALL TODAY AND MOVE IN TODAY.
Let me know what you all think. Thanks! hoping to make this a great deal, and my first.
you have to run the numbers.
By the seller using L/O you will pay $17,240 MORE than asking, BUT, over 9 yrs. (= $1915.56 per yr or $160 month)
Repairs needed=?
Rent rates in area?
Prolonged repair cost?
Do you have buyers/RTO/or L/O buyers that can pay MORE and You create and deal?
This is where you have to know HOW to structure deals and create a win/win for all and IF the rent rates, Option fees are large enough and you Have Qualified your buyers/seller/property, you Can make a deal!
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
i've been trying to do my research on this property that i am going to look tomorrow and i can't find anything. there are no properties for sale and no site will pull up any of the info for anything around the property. They want $40,000 for the property. the guy says its worth $48,000 and that he did $12000 worth of work to it a couple years ago. im so discouraged right now i think i might just cancel. my original plan was to get the property locked up using a lease option make an offer of $30000 and take the 60 days i was asking for to market the property and wholesale it. Or i was just going to put a tenant in it and get a non refundebale deposit, cash flow every month, and possible make some money on the back end. Its like i know what i am doing until it come down to talking to home owners then i forget everything i was taught. so discouraged right now.
Hi wrldfamus247,
I know you can do this! Don't let fear cripple you for what you know to do, It will chew you up and spit you out! Don't limit yourself...Some of the worlds most successful buisnesses came from failure,instead of beating themselves up they refused to let failure win and succeeded. So go in your meeting with confidence, and I know u will succeed. Never! Ever! give up! or let fear take hold of your heart. Even if your not ready to lease option this prop u can always assign it,or bird dog it. Change ur limitting beliefs to limitless. How can I make this happen? and just DO IT!
All things are possible to him that beilieves!!!
Tyeisha
Wholesaling Lease Options is a great way to turn a profit. I think one of the biggest things you need to look at is the amount of money the seller wants upfront. What percent are you going to charge your end buyer? $3k is a lot of money being paid to the seller considering the home is only $40k.
How are your contracts structured? Are you going to sign a rental/lease purchase contract with the seller, then assign your interest?
www.ownusahome.com
Ok, i just got back from checking the property out. And by the way, thank you Tyeisha for the encouragement. Thank you for being there, and helping me to realize that i should persevere. The property actually wasn't too bad. They said they did about $12000 dollars worth of renovation but i don't know if its true. I looked all over trying to find comps but couldn't really come up with anything. The asking price is $40000, they said it appraised for $48000, but like i said not too sure considering i couldn't find any comps from the area. They are definitely motivated to sell. Before i left the guy said, "Dude, help me sell this house." I could use some help structuring the deal. I know i can get them to give me at least 60 days before i have to put any money down. So if anyone out there can help me to structure this deal i would owe you big time!!!! thanks
Good luck setting it all up! I'm still working on my first deal, so I won't be of much help other than cheering you on! One of my goals is to find a lease option that I either rent out for positive cash-flow, or wholesale. Thanks for posting about your possible deal, as it has added some needed motivation to start my week!
Something I learned about myself is that when I'm chasing down possible deals, I get REALLY excited and will forget to eat and hydrate myself. This completely ruins my next day, so my advice is to remember to eat and stay hydrated!
What would someone be willing to pay to rent the place? How did they come to own the house? Did they live there, trying a fix/flip, or inherit the property? Why are they selling?
Thanks bret i am glad i could motivate you a little bit. Trust me i am right there with you. I started this about 6 months ago if not longer. just by going out today and meeting with a home owner my confidence has went sky high! The more i do the better i feel and know in my heart that things will change. Hang in there brother you will get to where you need and want to be soon!
And Michael,
The sellers don't owe anything on the house. They bought it to fix and flip but haven't had much luck on selling to anyone. I have been busy with my little girl today but i am going to post some ghost ads about the house on craigslist and postlets to find some tenant buyers or investors. The sellers told me they want 40,000 but they also said " we would accept 39, 38, 37, maybe lower, just let me know your offer." So hearing that tells me they are wanting to get this property off their hands. I think i am going to try and go as low as 30,000 just to see what they say. what do you think? thanks for the help!