Did what Dean and most every other investor told me to do, Flap my lips!
OK, so I am putting some money into an option to purchase and I am sharing equity at sale and yes I'll also be putting in some repairs, I already have a tenant generating $200 per month more than the LTO monthly payment.
The estimated FMV by the City is $48K. Mine comes out at about $42k.
Regards to all,
Here's the deal:
Good evening John,
A brief email to confirm the major points of our negotiation this afternoon:
Fixed Sale price of $22,000 (twenty two thousand dollars) valid for a term of 2 years.
A Lease to Own contract as of 01/02/2010 through 01/31/2012 for which a rental of $390 to be paid to Bank of America monthly starting on 02/1/2010. (Could you provide me with the account#?) This payment will be terminated at the moment of Title transfer on consummation of the Option to Purchase or in the event that the building is destroyed making the Lease to Own contract unenforceable.
Lease to Own and Option to Purchase contract to be provided for your approval.
$2,000 cash on 01/02/2010 as non refundable option premium for the Option to Purchase portion valid from 02/01/2010 through 01/01/2012)
Repairs (maximim $4k) to be undertaken to return property to a habitable and rentable condition.
At execution of the Option to Purchase, that the closing costs to be borne by me.
We also negotiated the following equity condition in the event that I should sell the property to a third party within two years of closing on these contracts.:
50% (fifty percent) of the profits after deduction of acqusition costs and costs for rehabilitation and maintenance (proof of these to be supplied) shall be retuned to you.
I'll be preparing the contracts and should hopefully have these completed by Thursday.
In the interim period I would like to have access to the property to evaluate the repairs required. Although you mentioned that I could have access to the property, I would appreciate it if you could confirm this by return email. This will help me avoid situations where the neighbors may consider this to be an illegal entry and call law enforcement.
The greatest force on Earth, compounding interest. - Albert Einstein