OfflineWe know the market has hit some difficulties. We also know the subprime market has basically crashed. What does this mean to you?
You have more houses to purchase and more people who can be willing, qualified tenants for you. Even if you do not have money or credit you can do lease options now.
Because of the number of people who could have gotten loans 10 months the number of lease optioners has gone way up. Consider having buyers / optioners now even before you had a property. Then think of the number of homes that you can tie up. This market is great.
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Lease options are one of my favorite real estate strategies. You have little risk and NO tenant headaches! Thanks Coach, more great stuff!
Psalms 118:23 "This is the LORD's doing; it is marvellous in our eyes."
Like you said they are great. They are easy, simple, and effective. This market is like a magnet for this type of business. There are so many people aching to get out of a home and so many people that want a chance at ownership and there needs to be people that give them this chance. Why not be the one that helps people out and puts people in?
I TOTALLY AGREE with my bud jjensen, Lease Options are an Excellent way to contral Real Estate without a massive amount of out of pocket expense, Plus i love the the number of Different ways to PROFIT from them. I look at Lease Options as 3 seperate-Mini Transactions......First you have the oppurtunity for receiving a "NICE" Chunk of CASH, on the "Front End"(Option Consideration) Then, you have an Oppertunity to make some Nice CASH FLOW EVERY Single Month, Lastly, you have your "Back End" PROFIT which is my FAVORITE and usually the Largest Profit made on the deal, once your "Tenant/Buyer" activates their Option.......So, there you have it, Folks, SULLY
YOUR HERO, SULLY
I must agree with you and my man Sully. But there is another way to make extra cash also in a L/O, or rent to own. The interest rate that you charge your renter should always be a few points higher if possible from the rate you are being charged. Not a big amount of cash, but it builds during the repayment.......Jan
Jan, I'm confused? How are you charging Lease Option Tenants Interest? This "IS" Different than "Owner Financing"....Jan, you know that right? The ONLY way to make Money in the "Middle" of a Lease Option is simply by charging a Higher LO/Rent Payment to your Sublet/Tenant, thats it, SULLY
YOUR HERO, SULLY
I have decided on one or other of the factors for the property. I informed my real estate agent to offer the property as a rental or lease to own option. I hope with this new move, something happen. I remain still quite optimistic that success will come. I am keeping my fingers and toes crossed. Keep up the good wark, my brothers and sisters. Thanks for your help.
Sandra
I was wondering if someone could answer me this question? If I had the money for the down payment on a property,could I still get turned down for a mortgage? Could my credit stop me? My credit is bad. I'm a new investor and I have been listening and learning from all of you guys. you guys are the best. really!! I'm still reading Dean's book, so I hope some of my questions aren't too basic. I'll stay in touch.. .thanks......
Yes your credit can stop you. The banks have higher criteria than in the past. Even though you may have the downpayment you may not get the loan. That is why this posting thread is usefull. Lease options can work for anyone.
Sandra
Lease option opens the way for more buyers. Only a small amount of buyers can get a bank loan. The larger portion of buyers can do lease options. I wish you the best of luck.
You may need to bring a partner in with good credit.
Hi Coach, Thanks for your suggestion and comment. As always I know things will go in my favor soon. Will keep all informed.
Sandra
How do you buy multiple houses on lease option without subleasing or assigning the option to someone else?
reighnie
Lost my thought, you are right on the LO/rent. Yes, that is another way to make more money in the middle. Thanks for your quick and precise adjustment from your end. I should have known you would be there to cover me!!! Must be I am reading my mortgage table book too much lately!!!Thanks Sully
No Problem Jan, you da man.......cause Sully said so, SULLY
YOUR HERO, SULLY
Can someone provide some details of getting properties with lease option? I totally understand what a lease option is, but if I look in the newspaper and start calling ads with lease options, how would that benefit me and also how would I approach the seller if he/she is thinking that I am the one planning on living in the property? Would this be a sandwhich lease option?? Who is liable if a fire or something occurs? Could this be a nightmare? Who has been successful with this? What happens when the first landlord checks on his property and notices that you are not living in it, but someone else is?
Jason
A better approach then calling "lease options" would be to call the "for rent" ads. You may have better response with motivated sellers.
The lease option is a rent to own. You, the buyer, are a renter. You should have renters insurance and the seller should take care of home insurance. When you sublease the original home owner still takes care of the insurance because you and the other buyer are renters.
First off, you don't hide anything from the owner. You say you want the option to assign the lease option to someone else, basically subletting the property. The only difference is the lease option part. You negotiate a good deal with the seller and another "good for you" deal with the buyer. I noticed in my area, there are a lot of lease to own option properties on the new homes that were built in upper middle class neighborhoods. The rents are much lower that the mortgages on those places, but they're asking a sales price as high or higher than the homes cost last year. I saw one asking for $449,000 for a house that's worth about $250,000 on today's market. It was from a company that had several. I don't know how successful they are. But, with a motivated seller, there's plenty of room to make a decent cut on top of his agreement with you.
reighnie