What are you getting up front?

[dellwebb]

Question for those of you who are doing it now and a good point of discussion....how much are you getting for homes in the midwest on a L/O up front at the moment. I'm hearing from other investors in MI that for most starter homes, middle income, about 1K to $1500 is all we can get at the moment for the lease option. What are your experiences in the Midwest?

[beaver124]

Sorry, dont live in the west.

BEaver124

[Buzz]

OUCH!

Smells like trouble down the road with only $1500.00 option money.  You don't have "serious" tenant buyers on your hands....you have renters.

Qualify and set the ground rules.  

TB:  "We only have $1500.00."

You:Oh, I'm sorry...we were looking for more like $6000.00 for this particular house.  Can you come up with more?"

TB:  Well, maybe $3000.00

You (just made $1500.00 by the way... ) Tell you what.....What if I finance the rest for you at 0%?  How much can you afford per month....$300.00?

TB:  Maybe $250.00

You:   Alright.....I can get you into this house today with $3000.00 and I'll finance the rest at $250.00 a month til it's paid off at 0% interest, but only if the money comes in on the first of the month.  Is that fair?"

$1500.00 for an LO is merely a renter who's gonna trash the place because they have no real interest in it and nothing to lose if they do.

Set the rules and play by them.

Respectfully,