Helping a Relative.

[Alberto Cordova]

Hello everyone, I might have a potential first deal!! Its actually a relative of mine and she is interested in selling her property since she is thinking in downgrading her home. At the moment she has a mortgage on the home. My question to you would be what type of strategy would I use to approach this? A lease option? She is not having any issues with payments just wants to downgrade. If I do take over the mortgage would that still affect her debt-to-ratio? 

Thank you all in advance for the assistance.

[Michael Baradell]

@Al Cordova did you discuss Lease option with her? Even though she may have little or no equity to sell traditionally, a lease option may still work for her. She should be able to get a slightly higher Sales price than a traditional buyer would pay. Of course, this is dependent on the home appraising for that price a year or two from now. She wouldn't have to worry about paying a Realtors commission and she could negotiate that the buyer pay all closing costs. Just a thought.