This is my first time posting on the forums. First off i'd like to express how excited I am about getting started in Real Estate. I ordered Dean's Think a Little Different course a couple weeks ago and it has been nothing but excitement since opening the first book.
Here's the deal. I have been looking around at properties for a couple days now to invest in. I found some potential flips as I am just starting out and have no credit and very minimal cash to work with.
Then I remembered that I have a friend who has a house on the market and it has been that way for a while now. He had rented it in the past, but hasn't had tenants for maybe a year now... so i'm thinking this is a very motivated seller... but it's a friend. I was hesitant about trying to make on offer to a friend to begin with but I gave him a call and this is what I have found out so far. Please evaluate this possible deal as i've laid it out to you and express your thoughts/opinions on it...
Owner is already in a lease option on the property. What we've been talking about is me renting to own the property from him based on a 15-20 yr. mortgage with an option to buy/assign. So if I come up with a buyer or the money for the house I go to the person i'm leasing from and pay him, he goes to the person he's leasing from and pays him and then we get the paperwork done. Is this legal? Logically it seems that the chain would work. I've contacted some attorneys on the matter but I wanted some personal opinions from all these great minds in the forums and people who have been there. Oh on another note, my family would of course move into the house as it is rent to town.
Any thoughts or suggestions concerning this potential deal would be appreciated. I have much much more info available such as FMV, assessed totals and such. Oh and he is talking about selling to me for assessed total not market value, which on zillow is $30,000 more atm.
Thank in advance I am anxious to hear your thoughts.