Lease Option Question

When I contact these sellers

Be like
Hello, I'm calling or contacting you about the rental ad I saw online. Could you please tell me more about this property. (you wanna keep them talking so you can create some rapport with them).. It seems like a good property just exactly what we are looking for. We are looking for a long term lease but the most important thing for us is that we would love to buy the property maybe now or in future. So have you considered selling the property in future.

If they say no, thank them for their time and move on to the next property lead which you have. If they say yes or maybe, be like ok great how much are you looking to get out of this property?

Always be upfront with these sellers and let them know you are a real estate investor and not a realtor. Let them know YOU WILL NOT be living in the house yourself and that you're working with a few local families who are looking to obtain a mortgage from the bank to buy a house but they need a cushion of time to work on their credit history. I personally let these sellers know that they don't pay me any commission and I get paid from the tenant buyer.

In the contract, you should write "this agreement is subject to finding a tenant buyer on or before 60 or 90 days." I always make agreement with my sellers non-exclusive meaning if they sell it or rent it before I place someone in the property, they can void the agreement.

Always make sure your numbers are right. In other words if they don't work please do not force the deal and just move on to the next or you can tell the seller you will check in with them in the next 10-14 days. If the property is still available you can resubmit your offer.

Wish you all the best!

Hi Nick

If the owner says yes, they would consider a lease option, I then proceed by saying the following...

"Oh, Great, I invest part time and I've been looking to add a few investment properties to my portfolio..is there a good time for me to come and take a look at the property?"

By saying it this way, they should immediately get the idea that you have no intention of living in the home. You can then go into your explanation of how you would take on the responsibilities of the property..Some owners will be okay with it, and others wont..But by saying "I'm looking to add some properties to my portfolio," they will get the impression that you are a professional and are experienced in what you are doing..

Hope this helps

Jordan

Hey, Thanks for your input and help on the subject.

All great advice above Nick and I would like to add a few things that I use also. The main ingredient I believe that must be presented is You are a trustworthy investor. Begin building a rapport with them and apply that LLC SYSTEM - listen , learn and control the negotiation. When you begin to listen to them you garner their respect. Then as you learn what their problem is you listen even more and begin to find a common denominator that will help them. This common thread will be you taking over payments of their property or at least seen to own or renting to own and sandwiching it. As you explain what you do and how you are very trustworthy and have never ever been late on a lease or rent to own payment this will ease their comfort zone. Let them know that it is YOUR reputation that is on the line in every deal. I give them examples and testimonials of many customers that I have done business with in the same exact situation in the past. Now if this is your first deal you will have to practice and practice giving them a reason to trust you. You either have to research and know this topic of rent to own or lease option inside and out or you will not gain the trust and comfort ability from them. Now everyone has to start out on their first deal and I know this because my first deal second deal third deal was a learning experience just like everyone but you have to take the first step and start to learn how to build a reputation to be known , liked, and trusted !! Granted you will not get every deal and some will not quite understand how this works so you have to guide them every step to make them comfortable and to let them know you know what you were doing. As said above being honest and upfront is the best policy and they will respect that and you'll get a yes or no answer by giving them the straight talk of how this lease option or rent to own system works. Listen to every question they have and let them know if you do not know an answer or two and you will get right back to them in a day or two then go research it first and you both will learn from this. The best part is you will either get a deal or you will learn a TON for the next one !! Get it done bud !!!!!!
Jay

Lease option and subject to deals, it tells you everything!

When doing a sandwich lease to purchase how do you figure the final sale price to charge the tenat/buyer at the end of their lease option. Is there a formula that can be used?