The details of my real estate deal are as follows. I’ve been working with a tenant buyer trying to locate a home to lease purchase to him. The tenant buyer has been interested in owning his own home, but could not qualify for a conventional mortgage. I noticed this abandoned looking house for sale. All it had was a small “For Sale” sign taped to the door. I called the seller to inquire about the property. She informed me that she lives out of town now and she wasn’t interested in renting it to anyone because she doesn’t have time for the upkeep, etc. After a couple of conversations and meeting with her at the property, she agreed to owner finance a portion of the purchase price.
As I was considering my offer to the seller, I already knew what my tenant buyer could pay me as down payment as well as a monthly payment. I got permission from the seller to allow me access to the property to show my prospective tenant buyer prior to signing the Purchase & Sale Agreement. We moved forward with the transaction that same day once my tenant buyer approved the house. P.S. The “For Sale” sign with the seller’s number was not visible to my tenant buyer when I showed him the property!
I gave the seller $5,000 down with $350 owed per month for 24 months. My tenant buyer gave me $5,000 down and will pay me $600 per month for 15 years. Although, I won’t make any “net income” upfront, I will have an asset producing $600 a month for a long time! What I’ve learned from this real estate deal is that these things can be structured in so many different ways. I thank you again for the education you provided me and the tools necessary to close any real estate deal that comes my way!