Low Money Down strategy recommendation?
I know a friend who is selling a house in a nice area, close to market rate and comparable condition to homes in the area. The house is in great condition and wouldn't exactly need any repairs immediately.
I'm looking to get started with my first deal, and I'd love to approach him with a solution that gets him the money they need up front and can bring in a little money in my pocket too.
I'd like to find a strategy that requires little-to-no money down. Would a lease option be a good solution for a house in good condition?
I just don't know what kind of strategies to use for different house conditions.
@Sam EppersonThere is hard money, private lending, etc. For more information, there is an entire book dedicated to this subject by Brandon Turner called "The Book on Investing in Real Estate with No and Low Money Down." Also, at www.biggerpockets.com/books there is a list of the 20 best REI books.
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Hope it helps and happy investing!!
i've got the book, but it's very general and not very specific on each individual topic. Just one example overview. So I'm hoping to find specific insight into when/why a person would use lease options or other strategies.
Hoping for in-depth info on a few strategies
Why is your friend selling the home? Can he qualify for another mortgage if he doesn't sell this one? What type of loan is he trying to get and what type of loan is he trying to get? What is the principle payment on his loan/how long has he had the loan?
These answers will uncover if a lease option or a seller finance will be good for him.
Especially if it is your friend, you want it to be a win-win situation.
If you aren't licensed it is going to be hard to make money, basically you just know a guy that is trying to sell his house...
@Deren Huang Friend is moving out of state. I don't have all that info on his current loan and any future loans. What kinds of situations are going to be more beneficial for him to agree to a lease option? Should he be able to qualify for a second mortgage, should he be making low payments on current one? Which answers to your questions will be good for him and me?
as far as not making money if i'm not licensed... i'm pretty sure everything on this site states otherwise. It would be difficult, but not even out of the question
If he HAS to sell the house to get move then obviously he would not do a lease-option.
It has to make sense for him.
How much is he paying on his mortgage, how much will you be renting it from him? There are a ton of factors that play into whether it makes sense for him to do or not.
The lease option will be like renting the house out with added benefits. If the seller doesn't need to be fully cashed out now, its a good option.
What you're proposing would be a sandwich lease, which requires more particulars yo do correctly. It's not really something to try out... Do some good research on the topic.