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daveg
Investor/Rehabber
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Need recommendation on a deal
Wednesday, September 05 2007 06:23 AM
I have a local couple who want to get out of a 4 br home in Bartlett and move back to Florida. They have an $1800 mtg, rental rate approx $1500. Also market prices are way down so selling is painful to them as well.
I was suggesting a lease option or sandwich lease with me as the buyer. Not sure if this would work profitably for me.
Are there any other methods you could suggest to help me make money and get this seller a win as well?
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Marty Couch
Investor
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Re:Need recommendation on a deal
Wednesday, September 05 2007 07:44 AM
Hi David,
Well, if you can let the sellers know everything you told us (slow market, hard to sell, the mortgage payment is higher than the rental amount) and suggest a sandwich lease or sub 2 where the sellers agree to continue to pay a portion of the mortgage each month (say $500.00) this would reduce what they are paying quite a bit and still give you some cash flow.
This has worked for a few investors I know.
Hope this helps.
Marty Couch
http://www.PPLChicago.com
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Randy Hughes
SFH Master Advisor
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Re:Need recommendation on a deal
Wednesday, September 05 2007 01:14 PM
Dave,
I agree with Marty. However, if you cannot get them to see reality try a lease option with you paying the full mortgage payment BUT you getting a FULL credit (off the purchase price) for all payments that you make. this will cost you in the short run but profit you immensely in the long run. Bottom line is they either need to "get real" or change their plans to move!
Randy Hughes
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