Читать книгу Sandwich Lease Options: Your Complete Guide to Understanding Sandwich Lease Options - Wendy Patton - Страница 10

Janet, a seller, answered an ad I had placed in a newspaper. I placed an ad that read:

Janet’s home had been listed on the market for $189,000 with a Realtor and had recently expired. She saw my ad and decided to call. She’s exactly the person I was looking for. She was willing to sell and also willing to do a long-term lease. Bingo! I still had to determine some other factors to make sure it would be a win/win/win.

Janet’s most important area of concern was her price, and she was set at $185,000, and she was not going to budge on that portion of the deal. As soon as I knew that Janet was set on this one area of negotiation, I could work with the other areas of the terms for myself (see Chapter 3 on Negotiation). I would need to look at the rest of the terms to see if I could still make this a win/win for my side of the deal. These days I do not say no as quickly as I would have years ago; I look at the entire deal now, instead of getting caught up with a traditional style of price alone deal structuring.

Janet fixed her price, and so I had to look at monthly payments and the timeline available. By having all the facts I was able to analyze the entire deal, and thus make sure I would still obtain MY bottom line of profitability. At the time of this particular deal we were in a strong appreciating market – approximately 6-7% per year. So I figured that at $185,000, with 6%, that would be about $10,000 per year just in appreciation. I had really hoped to get the property for $175,000. Even with $10,000 in appreciation after the first year, I would only be where I had originally wanted to be in the first place! I did end up buying the house for $185,000, and put $4,000 of improvements into the property (just basic carpet and paint). I now had $189,000 into the property. Selling it for anything above $189,000 would be pure profit.

Janet was not in trouble financially but she was motivated to sell! She had a severe shoulder injury that was preventing her from doing the maintenance around the property. She made great money, and could have hired someone for the maintenance, but decided that with 20 plus surgeries under her belt and more to go, she just wanted some time outside of her large home and yard to deal with. She didn’t need her money out of the property, but she did ask for $1,000 up front so she could go rent a lake front home in the area. The $1,000 I gave her for the option fee, plus the $4,000 for improvements, was a total of $5,000 out of my pocket for this home, which is less than 3 percent down. In the scheme of things this is a small amount down for this home.