All Forum Posts by: Michael Campbell

So if I state in the agreement that seller will pay up to 6% concessions, is there a way that I can structure it in an incremental fashion. I just wouldn't want to have to pay the whole 6% if the tenant buyer exercises the option 5 or 6 months down the road. I would want that 6 months to represent a portion of the 6% somehow.

Ok I have to correct myself on the math. So the total amount of "credits" that would accrue would not exceed 6% of $220K (that would be 13,200) .  

I am trying to work a lease option deal where the tenant buyer gets $200 a month out of their monthly rent to go toward the purchase price of the home once they exercise the option. I have heard that a rent credit can only be fulfilled in the form of a seller concession and not to exceed 6%. However, there is already going to be a seller concession in the amount of $2500, so that the total credits to the buyer when including the $200 a month for a 2 year term would exceed 6%. 

The purchase price of the house is 220k with the monthly rent at $1500 and a $10k Option Fee being put down. 

I am wondering if I can increase the amount of the non refundable Earnest Money (option fee) by the total of $200 x 24 (months) making it a total of $14,800. $10k would be put down up front and the remaining amount would be paid in monthly installments. If the tenant buyer exercised the option to buy before 24 months was up, then the remaining amount due on the earnest money would become part of the total amount due for the purchase of the house. Technically I would be decreasing the rent amount by that $200 and the earnest money would be paid monthly with a separate check.

Assuming that there were copies made of all the checks that were going toward that earnest money (including the 10k up front and the $200 a month), is a lender going to be able to look at that and acknowledge it as having been paid and sufficing for down payment on a $220k purchase? 

Can you see any problems with this scenario? 

Thanks in advance

thanks! That helps out allot! 

I read that in my area, the FHA limit is 271k. Does that mean that the purhcase price in total must be 271k or under? Or does it meant that the total amount that can be loaned is 271k? I'm wondering this in regard to down payment requirements

what is the safest way , from the sellers perspective, to buy a property with owner financing when there is a mortgage currently in place?  Would you use a land contract maybe? 

if you have an LLC set up as a sole proprietorship with your own social security number attached to it, does it still protect you?

what is the best way/instrument to use to sell on owner financing with the most ease of foreclosure in Tennessee? 

If he is talking about 20% of ARV prior to having the rehab done, than he MIGHT be talking somewhat reasonably. The standard wholesaling formula is (ARV X .70) - repair costs - your profit = offer price. Usually that number will equal roughly 40-50% of the ARV. My opinion is that, unless he is looking for absolute dumps to rehab, he is being a bit unreasonable.

I have a friend that needs to rent a 3 bedroom house is studio city. If anybody has one, let me know