Would you assign this or just avoid a possible headache...
A man contacted me from one of my adds and here’s the deal.
He has an assigned contract from the owner for $124k...
He then has it lease optioned to a couple occupying the property with a price of $155k on the contract...
The option is coming due and the couple cant get it financed...And he cant pay off the mortgage without them getting financed...
What would you do?
The average comp in the area is $150k and in a good part of town.
Get him to assign you the contract, put it on MLS and try to make a couple grand?
Run away, far away?
So if I understand this correctly the gentlemen you're dealing with is in the middle of a sandwich lease/option, is that correct?
If you're going to try to receive an assigned lease/option and then sell it retail you're going to have a difficult time making any money. How long is it going to sit on the market, what are you going to pay a real estate agent, how much in concessions will you make, what repairs will be required after an inspection, how low of an offer will buyers throw at you this time of the year, not to mention what issues you may have with the tenants moving out, i.e. security deposits, option consideration, eviction, repairs, etc...
You'll be taking substantial risk for a very small reward (if any). Unless you're willing to sell on a lease/option a.k.a Rent to Own then this is probably going to be a PASS.
Depending upon how much time is still left on that option, you might actually have a decent play. Even if there's only a little time left (eg 2 weeks or less), you could ask your lead to ask for an extension. Although he might not get it, it never hurts to ask.
You might consider tackling this with an equity partner or a private money lender. You might also consider doing a conventional 80/20 loan. A third option is for you to do a flex option with that lead, get permission to speak with the seller, and offer to purchase the property with seller financing. A fourth option--provided you have some other assets that you could use for cross-collateral--is to use 1 or more assets as collateral for your down-payment, and get a conventional or private loan for the remainder. A fifth option is offer to do a swap.
Concurrently, while structuring the acquisition, you could contact the current occupants to see what their plans are. If they'd like to stay, and you're open to selling to them with seller financing, then make it happen.
