gain control to lease option

[WebBoard]

From: Bill Churchwell


Is anybody doing this type of deal -finding flexible motivated sellers, taking a L/O and finding people to take a L/O on this same property?

The demand for this type of dealing would seemingly be high whereas the supply seems the likely obstacle.

Bill

 

[lawsjs]

Reply: 1
From: Jeremy Laws


I think thats called a standard lease option!

Seriously you will find the problem with that is people selling these houses would want the cash - NOT another headache.

 

[Boyler_Room]

Reply: 1.1
From: Boyler Room


Bill,

That's my game plan. My angle is to find those rentals that have been vacant for quite some time. Approach them with your offer. Figure out how to sweeten it for them and you should have yourself a deal. Since every situation is different, there is no one way to sweeten the deal for them. For some it's the fact they're losing money. You might be able to negotiate the rent down if you can take most of their expenses off their hand, leaving them with a +ve cashflow. For some, they might need a bit of a cash injection right now...just give them a reasonable option fee (which if you already have someone lined up for it, you could use theirs??). It's up to you to identify the sweetener for them. Once you can do that, you should have yourself a few deals.

On a personal note, I don't think of that as a "Standard lease option". A standard lease option is simply a lease with an option to purchase. I like Andrew Gray's term: the "sandwich". 2 lease option's with you in the middle, controlling both.

Let me know how you get on.

Boyler Room
Co Ordinator for ADL Freestylers