- Joined
- Oct 17, 2007
- Messages
- 295
I'm looking for some creative feedback on a deal I have on the table.
Here are the numbers
Seller wants out of property.
Would you try and secure this property through a lease option (if the seller accepts) or an Agreement for Sale? My understanding is that the lease option has less risk (for me) if my tenant buyer doesn't close. If I signed an Agreement for Sale, would I not now be legally bound to purchase this property in 2 years, regardless of what happens to my tenant/buyer?
Looking for some feedback on the numbers and suggestions on how you would structure this deal.
Thanks in advance
Mark
Here are the numbers
Seller wants out of property.
- Wants 10k cash to lease option the property (to me)
- Will be walking away from about 75k in equity.
- My purchase price will be 600k
- Lease payments (from me to the seller) of $3,000 per month
- Great neighbourhood with appreciating values.
Tenant / Buyer committed
Deposit of 25k
2 year lease option with a sell price of 750k
Lease payments from the tenant buyer (to me) at $4,000 per month
20% credited monthly towards purchase.
Would you try and secure this property through a lease option (if the seller accepts) or an Agreement for Sale? My understanding is that the lease option has less risk (for me) if my tenant buyer doesn't close. If I signed an Agreement for Sale, would I not now be legally bound to purchase this property in 2 years, regardless of what happens to my tenant/buyer?
Looking for some feedback on the numbers and suggestions on how you would structure this deal.
Thanks in advance
Mark