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Updated about 6 years ago,
For buy and hold investors . I think?
Let’s say I’m the investor and you’re the seller. You want to sell me your house for 545k and take over the loan then buy it back for 650k in 4 years. The loan is now covered by me, and you rent my house for 2500, but the mortgage is 3500. So at this point , I’m covering the extra 1000 per month. At the end of 4 years I have now paid 48000 and you now want to buy the house back. You buy the house for 650k which means over 4 years I’ve invested 48,000 and made 57000
Adding the assignment fee, let’s say 10k, and the buyer has now profited 47k In 4 years from investing 48k , about 10,000 a year. Would people be interested in that? Maybe buy and hold investors? A lot of people are saying this wouldn’t work can someone please explain why? Because for people that buy and hold I thought their return would be at the end of the hold, not Necessarily cash flow.
And what about the risk? Let’s say it’s worth it. But at the end they opt out of buying it back. What happens at that point with the investor and the house? I think that makes sense the way I explained it.
They’re a so much info I’m trying to grasp sorry if this is an obvious question.