Are these vultures, or is this a deal?

[Jason Mizell]

2 months ago I purchased a 2br/1ba house for 38k that is in good shape and the best house on the block.  No tenant yet for whatever reason, but I received a letter yesterday from a company saying "I was browing through a property management website and ran across your unoccupied property....would you be open to one of the following options?

1. all cash purchase of $42,411 and they pay closing

2. purchase price of $51,499, they pay closing, $3600 cash to me at closing, and I finance to the buyer at 9% over 10 years

3. purchase price of $60,588, they pay closing, $3000 cash to me at closing, and balance to be paid in 150 equal monthly payments.

Is this a common occurrence to get letters like these?  I'm relatively new to real estate and haven't come across this yet as my other properties had a tenant upon purchase.  Would appreciate insight from the community.  Thanks!

[Ross Denman]

It is probably someone looking to do a sandwich lease w/ purchase option. I am skeptical of this as it is easy for them to get over their heads if they don't have capital to fall back on. Basically, it is probably something like this:

They close for whatever price and pay the $400-450/mo owner financing. They rent it on the high side of the market to someone interested in purchasing that doesn't have the credit. They will also get their closing costs back by collecting a $3k-5k non-refundable fee to hold the purchase option while they keep the middle. 

The advantage for you would be the guaranteed $400-$450/mo as long as they don't default. They would also be responsible for maintenance, repairs, insurance, taxes, and holding costs during vacancies. The problem is that they are gambling and if they are inexperienced or under capitalized to meet the obligation in the event of problems... you end up having to foreclose to reacquire a property that is likely poorly maintenanced if not trashed.