I think you’re trying to ask two separate questions in one.
What kinds of properties do you L/O?
What kind of properties do you buy subject to?
I will answer the subject to question the same way, whichever ones have front doors...
You always want to buy subject to the existing loan... But you don’t always want to lease option the subject to that you buy.
So I would only L/O properties I had ZERO money in or could recoup 3 times my investment with the option consideration... If I did have 5k in than I better get a 15 k consideration. The idea of tying up my money on a possible deal is not advantageous to me..
The other consideration will be monthly income verses expenses verses equity base.
If you purchased a sub 2 and had junior seller financing or lender financing where the monthly was higher than the L/O payment I would not L/o the property. Even if the optionee paid a large consideration.
Actually I would not have purchased the property… But thee are investors buying for tax advantageous …
I would never L/O a large equity based property...
Remember L/O’s are meant for low equity, over values properties where you will be earning the consideration, a monthly and the back end at sale or they vacate so you can do it all again.
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I like the ones with front doors they work well.
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I think you’re trying to ask two separate questions in one.
What kinds of properties do you L/O?
What kind of properties do you buy subject to?
I will answer the subject to question the same way, whichever ones have front doors...
You always want to buy subject to the existing loan... But you don’t always want to lease option the subject to that you buy.
So I would only L/O properties I had ZERO money in or could recoup 3 times my investment with the option consideration... If I did have 5k in than I better get a 15 k consideration. The idea of tying up my money on a possible deal is not advantageous to me..
The other consideration will be monthly income verses expenses verses equity base.
If you purchased a sub 2 and had junior seller financing or lender financing where the monthly was higher than the L/O payment I would not L/o the property. Even if the optionee paid a large consideration.
Actually I would not have purchased the property… But thee are investors buying for tax advantageous …
I would never L/O a large equity based property...
Remember L/O’s are meant for low equity, over values properties where you will be earning the consideration, a monthly and the back end at sale or they vacate so you can do it all again.
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