OfflineOkay here is the problem that I am trying to resolve.I have a property that I can get below fma by about 25%. Here is the issue, its my first deal and want to do it without any of my own money or credit(because I dont have any) and dont want to mess it up. The seller owns the property that currently has good tenents that pay rent. The seller wants to get rid of the property and the tenents would like to stay when the next buyer purchases the property. The renters just relocated from vegas and their house is in a shirt sale out there so their credit is shot so they cant get a mortgage to buy the property they are currently renting. So my question is, how can i get the seller a lump sum of money and hold the financing for about a year or two and get the tenents to do a lease option and make a profit for me. I know its a win win all around for everyone if I just knew how to structure the deal properly. Any help would be greatly appreciated.
My limited knowledge tells me your going to need an end buyer if the owners cant finance you
www.curtisclickandship.com
Is there any way to right a promisary note and sell the note for a lump sum on the property down the road??What do you think??Thnak you for your response
I would try to find a buyer,get a purchase contract in your name,use "and or assign"get as much time as you can 30-45 days.then mark up and assign to the end buyer.If anyone cares to correct me on this feel free.this is just a boiler-plate technique for assigning with none oof your own money.you could also try one of those sell homes for cash places to at least see what they offer.Again there are many more knowledgable people on this site.if you fill out your profile you will get more input.
www.curtisclickandship.com
I agree with BJCutis, assign it to another investor. If there's a cashflow, the end buy can hold onto the property, lease optioning it to the current renters until they can get there credit scores up and purchase it out right if I understand you correctly. Win Win!
OKay Guys thanks for the help. If anybody could think of anything else please let me know. Thanks again for your response and help bj and ison...
Under 70% arv, then wholesale it. So if it's worth 100k, get it for 60k, assign for $65k with cashflow and you should be good and get $5k for assign fee. You never know, unless you ask.
When I read your commet, it was like a light blub turning on .I happen to be looking at a home in this price range. I have not made my first deal yet nor have I made an offer. I have connected with the owner for, some history and updates,price etc. So this commet, I would say has helped clear up an approch
Thank you, Get The House
B.G.Walker
Doug,
I agree with Dallas (thishousebuyer). Find a buyer first, renegotiate the contract for an all cash offer at 60% or less and assign to your buyer for a fee.
It doesn't sound like you are currently in a position to buy and hold for the cash flow and still make it win win for everyone.
However, if you wholesale the deal to a cash investor, it can become win win.
Seller gets a quick close, investor gets another cash flow property with equity for their portfolio, renters get to stay while rebuilding their credit and you make and assignment fee.
I... can't think of a happier ending.
I truly believe if you are just staring out and you don't have any cash or credit... wholesaling is the way to go until you build up your cash reserves. Then you can start a buy and hold strategy.
I hope this helps.
Thanks.
Brian Carter
Brian Carter
Proverbs 13:20
BirdDogBot
In order to be able to make this work as a L/O deal, You are overlooking one MAJOR point here.
The Tenant/Buyer is going to have to be able to qualify for a mortgage in a year or two or this will not work. It is all going to depend on how badly this SS will affect their credit. If it goes on their credit with a black mark equal to a foreclosure, they will not qualify in the time frame. (I cannot think off the top of my head how the SS registers on the credit. I used to know but for some reason am coming up blank.)
If that is the case, no matter how you structure the deal (L/Owise), it won't work with these tenants. And if they just moved in and have a lease, you will more than likely have to honor their lease.
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can't you do a lease option with the current tenants and get the down payment from them?
wishing you success,
Valerie
Valerie
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Some great ideas and advice out here in the dg family. thank you all very much for your expert opinions and advice. Im taking each and every one of them into account to see how I can get this to work.
.... If it says the owner has the right to modify the lease or add to it at any point, you can, as long as you give the tenants a 30 day notice. It happens the same way with apartments, too. Let's say the landlord is paying the utilities, and the tenants aren't. At any time, the landlord can change the lease (as long as it says they can), with that 30 day notice. The tenants will have no other choice but to comply or if they don't like it, they may choose to move out.
Hey Val,
I thought about that and approached them but they dont have the funds for a deposit and their credit is shot from there short sale and they might be claiming bankruptcy. so not only is the deposit from them out of the question but so is the chance of getting them a bank loan to buy the property and and receive a nice profit on my end..