Lease Option - Financing Your New Buyer?

Thanks for your input. However one of the strategies Dean speaks about is finding a good deal and getting it with little money down as a lease option from a seller(A)....then find a tenant to rent it out to until subsequently you(B) can have your new tenant(C) to purchase the property for more than what you've agreed to purchase it.

So the transaction of (AtoB) then (BtoC) within a day or so poses a seasoning issue to (C) the new tenant/new home buyer!

You are correct...more than likely the new tenant/buyer will have to go FHA for the lower down payment of 3.5% with a seller concession of 6% makes offers the new buyer relief on closing cost.

The problem is there are seasoning issues....SO the investor(B) would have to lay out the cash (or private money) for 90 to 180 days to avoid issues the new buyer (C) will have with there lender.

Is there something I'm missing here...Or do you know of a way where you can ACTUALLY structure a deal like this without having to put out any cash???

What you are talking about is not a lease option. When you are doing a deal where (C) comes up with the money or financing right away,that is flipping the deal.

With a L/O, like Eric says the buyer(C) is leasing the property from you for a period of time (usually at least 12 months but can be longer). There are different types of L/Os. I have a thread that will give you all the places to read to fully understand this concept. You can definitely do it with no money down but you have to study and know what you are doing.

Here is the link: http://www.deangraziosi.com/real-estate-forums/everything-else/71370/lea...

Good luck!

Karen

You wrote a very good explanation. I took the easy way out. I was feeling too lazy to type so much and there is info on the thread with the various types of L/Os, too--sandwich, co-op, etc.

good explanation.. greg makes it look easy

Greg makes it look easy because it is easy.