Lease Option Question

[ChuckFromMichigan]

Hello All got a quick question....?????....

I was wondering if i could get a lil help on this crative investing idea of mine...    What kind of property and seller could i get to agree to the terms of $700 or less option fee with $700 or less mothly rent with a 2yr lease option agreement with $100-$200 going towards purchase price??? like whats the highest value one can get to agree to those terms and what type of seller would agree to that??? Thanks For Your Input       Happy Investing

[aaronwilliams123456]

You need to find a motivated seller who "has to sell".

[AJ290]

Hello All got a quick question....?????....

I was wondering if i could get a lil help on this crative investing idea of mine...    What kind of property and seller could i get to agree to the terms of $700 or less option fee with $700 or less mothly rent with a 2yr lease option agreement with $100-$200 going towards purchase price??? like whats the highest value one can get to agree to those terms and what type of seller would agree to that??? Thanks For Your Input       Happy Investing

What kind of seller would agree to your proposal?  Easy.  Any homeowner who is in need of debt relief.  And there is no shortage of them these days.

[ReCoachDennis]

Hey chuck

these guys are absolutely right.
You need to deal with the right seller.

In fact, this deal can be even better.

If you get the right seller, your option fee can be $10
Your rent can be lower than $700 and you can get $300 or more as rent credit.

It all depends on who you're dealing with- and how your present it.
Even if it is just thorugh debt relief, your seller needs to feel they are winning too

Dennis

[ChuckFromMichigan]

ok i totally can understand that im checking out a few properties that are FSBO all of them between 47k-89k i have 1,000 dollars to put down and i want a monthly no higher than what you said 700 im suppose to look at the first tommorrow 3bed 1.5bath ranch style for 59k lets see what happens the owner is moving outta state.. 

[ReCoachDennis]

Out of town owners should be motivated to do deals like this Chuck.

You have to sell them on the benefits:
No vacancy
property taken care of
guaranteed rent

etc.

let us know what happens
 
Dennis

[Rob in Atlanta]

Good advice from Dennis.....I alway teach my students to find 'vacant' properties or any with long distance numbers listed in the ad.  Most of those will be motivated and you will find a deal to fit your requirements.  Digging for gold!!!!  Love it!!!!!!

[ChuckFromMichigan]

       

Aright you guys i found a property in a very nice neighborhood going for $110,000 i asked the guy would he be willing to do a lease with option to purchase on a 2yr agreement with a sale price of $90,000 option fee(downpayment)-$1,000 and 600 a month with $150 of it going towards price and he said yes!!!! shocked the heck outta me but i went for it.... how good of a deal do you guys think this is????

[herbster]

It sounds like a great deal but a few things you should consider. Is this house worth it? Whats the sellers motivation? Protect yourself, ask for a memorandum of Option. Check out the sellers credibility, are they behind on the Mortgage, last thing you want is to have a foreclosure notice stuck on your window 6 months down the road. demand proof the mortgage is being paid or arrange to pay it yourself, same for taxes and insurance, consider hiring a 3rd party to service the payments and payouts. Note, some of this doesn't apply if the home is free and clear.
My 2 cents anyway. Herbster

[ChuckFromMichigan]

yeah he is a older guy around late or mid 60's owned it free and clear and has a wife he recently married  and they decided to move into her house..