This is a PM that I recieved. I believe I am a little late replying to this but find it a great opportunity for learning.
Hey Nstreet. I have spoken with a couple FSBOs.This one in particular has a 2unit. He wants to get rid of it because he bought the house for some family members that were suppose to live in it. Things never fell through so he was stuck with a house. So he rented it out. I believe he bought the house outright for 110k last year. He said he wants to get rid of the house because he has to many things going on for him. He said he put 45k into it which is hard to believe becuase I drove by the house today and the porch and front door looked terrible. But however the inside may look like he says. He wants 175k for it. The 2 units are rented out right now. He says he gets 1900 a month from the 2 units combined. He told me he will call me in a couple days because he has to give his tenants 24hr notice to show. But I am wondering if I can do a lease option agreement with him. He will stay the owner until all his money has been paid to him. I use the tenants money to pay him back on a agreed amount for the house so he can at least recoup some of his money. I figure I can get a property no money down and manage the property. I can possibly start to buld my networth and have a little cash flow from the building and if payments are not made he can still have ownership of his building. I dont plan on not payin the man if he works a deal like that out with me. But let me know what you think or are there other creative ways to go about this. Basicly he doesnot want the building just his money.I figure he I can tak ethe building and stress off his hands Dean says sometimes full price can be my friend. So help.
~ My response is this. You can lease option a rental. This happens regularly. Many have done lease options with commercial properties. The positive to this is that the owner only needs to deal with one payment instead a multitude of payments.
- Also a lease option and land contract are not the same. As was noted in the PM "He will stay the owner until all his money has been paid to him." This sounds much like a land contract situation. Lease options are leases (rentals) with an option to purchase.
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