Lease Option Newbie
Hello All
Background:
We currently have two properties that we are renting out and soon to be three. These properties are growing in equity but are not providing much positive cash flow so we dont have a lot of cash on hand. I have heard quite a lot about lease options and have some questions
1) IS it better to find the T/B first or buy the property first
2) If we contract to buy the property and and we dont find a T/B then am I stuck with a property that we have to now make mortgage payments on? That part doesnt make sense to me
3) How do we find a tenant buyer and then make sure that they are qualified? (Ads ???, flyers? )
4) what if the tenant buyer does not like the property that we just contracted to buy ?
5) How do we show the tenant buyer their prespective home when we have not bought it ?
6) Where can I find a very well worded L/O contract that not only protects me but also helps the tenant buyer
Lastly a large majority of the L/O that are in the paper appear to be investors so the down payments are quite high and so are the monthly payments. What are your suggestions? 7
Thanks in advance
1. Find the property first.
2. No.
3. Classified ad. Depends.
4. So what? If it's a nice house in a nice neighborhood, they'll like it. A person with bad credit isn't picky.
5. You have a lease with the right to sublease. A Contract to buy grants the right to sell (equitable title).
6. Get a Course on Lease Options for starters.
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Thanks alot LOK
I didnt fully understand the answer to #5. What do you mean when you say
"A Contract to buy grants the right to sell (equitable title)".
an additional question is how long is normally requested from the Owner/Seller in order for us to find the T/B
Appreciate your answers. I am reading a Book called the 5 Magic Ways to Buy Property I dont have the book with me so the tiltle may not be totally accurate.
Do you reccommend any other reading/books on L/O that are straight to the point and go into the meat of the subject
Your L/O Agreement with the Seller allows you to show, sell, sublease the property during the term of the Agreement. I ask for 30 days. Books will only whet your appetite; you can get the same and much better info here at TCI.
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"A deal is only as good as the quality of your Contracts." --Me[ Edited by LeaseOptionKing on Date 12/15/2004 ]
Thank you LOK
Only 30 days? I'm getting a sandwich lease signed on Thursday that gives me 6 months to find a sub-tenant/buyer or asignee (sp on purpose)
JD
During the meantime are you taking the property off the market? Properly executed, 30 days is all I need to find a T/B.
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hi Everybody,
Does anybody,
how to find a property for Lease option, or i.e when you see a property you would know that opting for a Lease option, you would pull more profit than other method.
Thankx everyody