Please help on Lease option

Congrats on joining the DG group! I would say it would depend on the tennants credit status and when they are able to come up with the down payment. Some can do this in 6 months or less. Are they currently working with a mortgage broker? If it is enough positive cash flow from the monthly rental fee. Then I would offer the buyer monies toward the purchase of the home. Or the seller can give a certain amount towards the closing costs in the end. What your goal time on flipping it would also depend on what profit margin you are ultimateley looking to make. As far as the major repairs you are responsible as a landlord. Like for instance, you can work out in your lease with the tennant that they are responsible for cutting the lawn. Or other things in which you both agree on. Continued success.........Lubertha

Thank you for the advised. I've seen your face all over the room with tips and advised. It is honor to have you pointing me toward my goal.

I have not really sat down with them to talk about the deal, but they really love it the house and location. What I do know is:

- husband have good credit but the wife is not
- husband have steady job
- wife is looking for a job
- they have a 2 year old baby
- their rent for apartment is around $500 – 600

This is what I have in mind
- 1 year rent to own option
- $1000 to $1200for monthly
- All minor repairs will be done by them; any big repair will cost them $150 for me to come out.
- Include dryer and washer
- No rental credit ( this could be negotiable, but other prices will also change)
- I will also give $6k toward closing to help them out. That $6k is from no agent involved. (My wife know them and they don’t have a lot of money, just helping them out)
- They will cover all closing cost.

(What do you think of my plan? Sound reasonable?)

Thank you for the compliment! Look foward to your support as well! What will your monthly cash flow be? Will their income support the double increase they are advancing to? There won't be a need for a real estate agent at the end because you can write the offer and their attorney can review and close it. As far as the 150 dollar charge. In my state you as the lanlord is responsible for all major repairs that could occur, if it is not damage they caused to the property. So the expense is yours because you own the dwelling. Say for instance the gas oven's electonic ignition breaks. It's the law here that you must provide the tennant with a working stove. If your offering a washer and dryer you can charge an addition fee monthly for the service. But major repairs is ultimately the owners responsibility. Helping to assist sounds like a good idea. Look into getting them prequalified soon. Ther are monies availible for first time buyers. To start the 8k tax creditthat is being offered before Dec 1 2009. There might be no need to assist at all! Over all the most important thing is to keep moving foward! Continued success to you......Lubertha

We meet up with the buyer and they love the house. They want to buy it instead of renting it. After they leave we walk outside and talk to our old neighbor and saying the neighborhood is really bad now after we left. They too are thinking of leaving. We leave because of different reason, no problem with the neighborhood.

My plan now is to tell the buyer about everything that has happening in the community and if they still want it I will willing to drop the price as well. I won't be making much, but better than to have a burden on this house. This buyer is friend with a friend. So I want to be honest and straight forward with them.

I plan to
$125k (appraised) - $10k = $115K - $8k (tax credit) = $107K (final price)

I think that's the best reasonable deal as I can do.

Everything sounds easy untill we started to dig it. I just hope we have what it take to succeed just like everyone else. Everything right now for us is so hard. Having 2 kids doesn't make thing easier. I'm only 30 and I want to have financially freedom when I turn 40. I want to create a solid foundation for my kid’s future. I want my kids to work hard on their dream, instead of working hard to meet the basic needs.

I thank you every one on here for their knowledge sharing and word of encouragement. I wish everyone the best, and see you all at the millions dollar party one day .

Thank you,

They turn down the deal at the last minute. That's ok, they are still looking for a different house to move into and they want me to help them. Will keep posting for any exciting news.

I got some sign rent to own and will post every where near there this weekend.

Will also looking out for new house and oportunity to move that couple into.

Hi Behold,
It's better to try! Keep moving foward. there are many offers waiting to happen. My only advise is to stand firm on your negotiations longer.Don't be so easy in dropping your prices. By standing firm your showing belief in the opportunity. Creating need. Hope this helps for the next and many more to come. Contied success............Lubertha

here is a thought,, Why not just get the mortgage in the husband name then, after the close, he can add the wife to the deed.
And as Lubertha said, there is plenty of FHA loans being done now. and by going thru an APPROVED HUD COUNSELING AGENCY, they won`t need any more than a 600 score, in some cases 580.

1) I normally do 1 or 2 years lease with an option to buy.
2) Rental credit I do not work with. Usually my lease reads (rent is 1100/month PLUS $300 extra to be put in the escrow account and used towards the down payment). I have had some success with that. Let's people put some money away for the house and when they are ready to buy, it won't break the bank. NOW!!! VERY IMPORTANT!!! You must put the addendum that if they chose not to buy the house at the end, all the money that they have put aside towards the closing is NOT REFUNDABLE!!! Make sure they understand that.
3) You can put anything and everything you want in the lease as long as they agree to it. I have clause in my lease to the effect that first $100 of repairs is coming out of their pocket. Usually people understand not to call you because they need to nail a painting to the wall (but there are some that would -- I had that happent to me too).

You should do the lease in everyone's name (husband and wife) no matter how good or bad their credit is. In the event something goes wrong, they are both responsible.

Yuri

Hey.
been reading your posts; DO not allow that fall through to throw you!!
My Destiny is correct. . .just keep advertising, stay positive it will pop for you. Remember that dozens of young families just like yourself are thinking everyday about owing their own home and the pride that comes with that and they are moving in and out of your area. Hit those local newspapers with adds; that has worked great for us in our area. Pay a little extra, and get the border or "new add" symbol, and don't forget to advertise on Craisgslist and Kijiji..
best to you
Grady

Hi people,
I enjoyed this piece.Now matter who what and where!
Welcome too the...Numbers Game.