Lease Optioning
It seems only motivated sellers that have little equity in their homes are great targets for lease option deals...talking them down to show "little equity" or paying an agent to get out......what do you do when owners have signifigant equity in their homes? Its harder to show them the benefit.....correct? This is a difficult proposition in Washington DC where equity stakes can be huge with homes skyrocketing in price...any advice? K
Don't get lost in the equity situation. Instead focus on solving the sellers problem. Make the seller comfortable enough to tell you "How much cash do they REALLY need?" "What will they use the cash for?" If the payments are too high, this is not about equity in the house (in the initial discussion). Carefully describe for them how you can structure a deal to get them the amount of cash they REALLY need verses the full amount of equity.
We hope this helps.
Eric & Rosa
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Thanks- just one other thing....how do you overcome keeping the deed or mortgage in their name for 2-3 years?
I know it sounds crazy, but you keep them by motivation.
You let them see that they can keep trying to sell their home and not know when it's going to sell. Of course if they drop down the price they would be losing money in order to sell. With this way, they are guaranteed payments will be made, plus they know they will get some money out of the property, but the biggest thing is that they will be able to get on with their lives.
Christian "The Solutions Kid" Beebe
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On 2003-10-31 15:27, kevinpop wrote:
Thanks- just one other thing....how do you overcome keeping the deed or mortgage in their name for 2-3 years?
Simple, they retain all their tax benefits.