Friday, October 26, 2007

Sale and Leaseback with Positive Cash Flow

Promised myself I'd never tout my listings on my blog. But this listing is quite different, and I'm having trouble getting the word out.

Investor Wanted, Investors Only. Seller needs sale and leaseback.
Positive cash flow for the right deal.


2 BR/2 BA/1 Car Gar. Patio Home. Gated. Pointe Tapatio (7th St & Peoria)


  • $230,000     Current market value

  • $250,000     Mortgage amount ($200,000 first; $50,000 second)

  • $175,000      Expected purchase price in a short sale

  • $1028/mo    Expected mortgage payment for investor buyer (20% down, 6.875%)

  • $1300/mo    Current owner/seller willing & able to pay this much monthly rent

  • $1100/mo    Current rent comps

  • Current owner/seller wants an option to re-purchase the property in 2 years, at then-current market rates


For an investor who can put 20% or more down on the short sale purchase, this could be a positive cash flow of $100 to $300 per month. Current owner is gainfully employed with 20 years experience in current field as an accountant. She got in trouble when she took a 2nd loan to cover some family medical bills. The ARM adjusted, the market tanked and she got stuck. Current lenders unwilling to do a workout with borrower. Attempting to secure lenders' approval for short sale now.

HOA dues are $200 a month and current owner willing & able to pay these. Her total monthly obligation would be $1500 (rent + HOA); she's now scraping together $2100 a month. Her credit's been ruined by this situation but she's got good job history and this scenario represents a major reduction in her monthly payment.

Contact me if you're interested or know someone who would be! She's a client who's become a friend and I'd really like to help her out of this jam.