NE ATL Ga Lease Purchase w/ assignable option - $132,744 profit

[Robert Starnes]

Acquaintance announced he was getting a divorce and selling everything at a yard sale. Asked him what he was doing with the property and he said he was going to let the bank repossess because if he sold it he would have to give his Ex 50% and the rest would be taken by creditors in his bankruptcy. 

I wrote a lease purchase with a clause that my option to buy could be assignable. Had to wait over a year until bankruptcy was finally discharged before I could consider exercising my right to buy. Was laid off due to Covid and banks wouldn't talk to me with no verifiable income so I couldn't get a mortgage on the house. It took six months to renovate house and make rentable. I rented house out for $1550 per month with $545 free profit after all expenses each month. House was rented out for 10 months. During that time RE in North Atlanta suburbs had skyrocketed. When renter moved out I realized that I had to do another renovation but that it would be much more profitable to sell due to property appreciation. Owner tried to squirm out of the deal but the contract held and I was able to exercise the assignable option and sell house after a lot of stress. 

had less than $5000 invested after factoring in profit from renting house out for 10 of the 18 months I had it. House sold for $285k and at closing I was wired the difference between my agreed purchase price of $132,000 and the sale price of $290,000 (minus real estate commissions, fees, etc) for a profit of $132,744.00 plus the very helpful rental income cash flow for 10 months. Now working on a similar deal and not looking back!