OfflineI'm considering making an offer to lease/option a FSBO property that is vacant because the owner built a new home. Dean talks about making sure the monthly lease is greater than average rents in the area. Why? This may make this deal undesireable because I would have a more difficult time trying to rent the property to someone else (I don't want to live there). Should I keep looking for something I can get at a greater discount? The property next door recently sold (it was a forclosure) for more than the asking price of the one I'm looking at.
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how much more?, SULLY.
YOUR HERO, SULLY
$10,000...I just looked at the property. It's in very good condition. so I'm not sure I could get the sellers to come down anymore unless they couldn't sell for a few more weeks. I found out the sellers lived in the property for only 8 months while they built a new home.
The reason you charge more in rent is because some of that goes toward the purchase price from the tenant. Most agree to pay it because they don't have a down payment or financing and can only buy a home this way.
Elena ;D
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
ale, you should still be able to get this property a little cheaper yet, if i were you i would be thinking of a SANDWICH LEASE OPTION, SULLY.
YOUR HERO, SULLY
Hey, Sully, what's a sandwich lease option? I just reread in Dean's book that a reason lease payments need to be higher than avg area rents is because a lender (for the purchase) may not honer the percentage of lease payments that were agreed to go toward purchase price. Any info?
A sendwich lease option is: when some one is putting a property for a lease with a option to by or Rent you can go and ask the for Rente or the leaser if you can lease the property with an option to buy if he/she agrees you take the property under your contract then you turn around and do a lease with an option to buy with someone alse. you colleced more every month you pay the original owner and keep the deferents. Hope that helps. If you need more let me know. Lilie
Lilie, thanks, that does help. I was also reading about it on another website (i googled it). You know if that's ever a legal problem?
I don't think it is illegal but you have to tell the owner of the property what you are doing if he/she dosn't aggree go find someone who does. These is good option to purchase with no money down. And you get a cash flow without buying the proprty. But for all that you still wonna look in all the regulation for your state.