First Time Investor Interested In Lease Option Deals
I am a first time real estate investor who is looking for a property for the purpose of initiating a lease option deal, however my credit is poor and my resources to capital are very limited. I have done some research into hard money investors who primarily look at the value of the property but in light of recent research I am finding that many have credit requirements. Given my situation, what is the best way for me to get started? :-?
Welcome ha360,
If done right, aquiring properties using the lease option technique is a technique that often requires little or no cash down. Here are some suggestions:
1. Read and learn as much as you can on the subject of lease options. This will not only keep you out of sticky situations down the road but will also get you proficient in describing the benefits of a lease option to a Homeowner during negotiation.
2. You may also get with a seasoned investor that does Lease Options and Birddog for that individual which will provide you with a great learning experience as well as earn you a fee for your services.
3. You also need to be able to recognize a "motivated seller" as these will predominately be your best candidate for a Lease Option deal. If you have a seller that is not truly motivated, I think you'll have a hard time selling a Lease Option deal to them. Also, this is the type of individual you will find will be apt to accept little or no cash upfront because, for whatever reason, they want out (i.e. divorce, company relocation, can no longer afford payments, lost employment, etc.)
Good Luck.
Dave
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Dave,
thank you for advice. Would you any other suggestions, or key things for me to remember starting out?
ha360,
if you have other specific questions I'll be happy to try and help you as I'm sure others will on this site.
A general suggestion would be to aquire the knowledge and then act upon it. Often I hear of that same old story of a prospective investor that became a professional student for years on creative investing and "never" acted. Take the plunge and Good Luck.
Dave
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