Ok, well I may have a deal in the works here, but I don't know if it is really a deal, or something I will be sorry for later.
1 lease/option buyer
1 Me in the middle
1 house whose estimated value on TotalView is $104,337 which has no mortgage
Combine a seller who wants $30,000 down ( I may be able to talk him into $25,000) with a lease/option buyer who actually is looking into getting $30,000 to put down.
Now, the seller won't talk monthly payments until I come up with something that involves the $30,000 down.
I was thinking I could offer him a 3 year lease/option with $25,000 down and $700/month ($200/month going to pay down the balance) I would then use the $30,000 from the lease/option buyer to pay his $25,000 and keep $5000 for myself up front. I was then looking at charging the lease/option buyer $950/month in rent with $200 going to pay down the balance.
The way I figure it, I would have the $5000 up front + $250 / month.
I think that sounds decent, but I don't know how to justify the monthly payment amount to the seller. How do you come up with how much you want to pay the seller each month when he doesn't have a mortgage payment for you to work in?
Also, he is saying he wants $125,000 for the house using a method like this or a land contract. He only has the house listed for $115,000. So, how does that make sense? And, how do I make any money off of that in the end? I figured I would have to get him down to $120,000 and then charge the lease/option buyer $125,000 in order to break even in the end when the option comes due. Is it OK, to break even in the end if I am making money in the front and in the middle?
Or, honestly should I just have this woman work it out herself with the seller. She found the house and gave me his number. She had wanted to buy it from him, but couldn't get approved for the mortgage.
Thanks so much!!!
Don't take no for an answer!
Don't live in the gap!
Don't give up!
You can follow my progress at: http://www.deangraziosi.com/real-estate-forums/investing-journals/54148/...