OfflineThanks for your comments. Just thought I would add that lease options are a good way to invest because:
1. For every cash buyer with >$100K in their bank account with a habit of investing there are at least a dozen people with crummy credit after the market downturn that had to declare Bankruptcy in the past 2-4 years that will be forced to rent or do lease options, and they are very easy to advertise for....just make sure they have at least $5k to put down on the front end so you get to make money up front.
2. Lease options will pay you three times, once up front, every month, and then usually a large chunk in the end since the end buyer isn't concerned about equity as much as not paying rent.
For every Seller that is willing to take a 30% haircut after rehab costs there are hundreds that have been listed on the market without enough equity to compete with the discounted properties possibly needing some rehab and the sellers have no money to fix it that will consider a lease option if they are educated on how they work!
If you are not a bloodthirsty ruthless investor that takes pleasure in beating up the bank and negotiating the heck out of sellers, you may consider lease options because this market is prime for them.
Cheers,
Dave
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Great post!
I love Lease Options and actually specialize in them. I have partnered with DGers all over the country that would not have been able to do a particular deal because it wouldn't qualify as a wholesale and they thought it was a "no go".
Karen
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Questions Anyone have the best way to locate lease/option everywhere I look it turns out to be a company trying to sale a lists of lease options homes for sale. Any Suggestion anyone ??
Just do your regular marketing. Anything you cannot wholesale may work for a LO. Of course, props that you can wholesale can also work for LO. You don't have to market differently.
You can also call "for rents" and ask if they would consider renting w the option to buy.
Karen
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"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
great points made!
Looking forward to partnering with Karen on one of them!
Valerie
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Lease options great!!!! I'm actually closing up on my first lease option deal tomorrow and will post details of my deal as soon as I get all the paper work signed. I'm getting paid a good amount 3 ways like you explained. Excited!!!!
Reynold Orozco
OK. Three things confirmed Thank you Again.. Karen
Keith and I love, love, love lease options too!
I need your help too! Please!
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
We are working on a short sale...
The short sale must be bought in our company name (we cant put someone else in our place and step out) according to the short sale approval. Then we are considering turning it into a lease option.
This short sale as a lease option has great money in it, up to $114,000, if structured properly. However, we are having to go thru many investors to get to those few that are ok with the term of 3 year to invest their money. They would rather put up their money for a much shorter time period.
Do you find investors are afraid of the x term (in our case 3 year term) on the lease option?
Have a great day.
Hi Karen, thanks for your post and in as much as your the go to person for LO, I have several questions for you:
With regards to the term -- say for example you made a LO with a seller for 3 years lease and option to buy. Then you turn around and get a renter for LO for 2 years. So after 2 years your renter decided to buy, wouldn't your seller not aggree to this since for him it is for 3 years? Also, how would you tell the seller that you will have another family (not you) living in the property or would you? How about the monthly rent, how much (usually) should go to the price of the property at the end of the lease?
As you can see, not really sure about this strategy. I'm also hearing about a Master lease option -- anybody knows about this?
Thanks in advance,
Dan
Hi All!
It was mentioned that Lease Options are a great strategy for this market, but how do you get Lease Option leads??
I've been unable to find sellers that will consider doing a lease option type deal. A lot of sellers I contacted asking would they consider a L/O or L/P, really don't understand the terms "lease option" or "lease purchase". When they hear "rent to own" they think of tenants tearing up their pristine property and not paying rent. When I tell sellers that "I will help them sell their house fast for top dollar", they state they are only interested if I will personally buy the property myself. If I say that "I will buy their property" then when I tell them that I will L/O and assign the deal they get upset and say that I am not really buying their property but pretending to buy it. When I ask them "are they flexible on the terms of the sale" most ask what do you mean.
Do you approach it as contacting the seller as just a regular buyer or as providing a service? Many sellers when they think you are offering a service think you are selling something and say "NO".
What kind of email could I send to the sellers on the many websites to look for sellers that may be interested in doing lease option deals??
How do you find these deals??
Thanks!!
Nick