OfflineHi, my name is Greg and I am very new to this. I have had Deans book "Be a real estate millionaire" for about a year and a half now and I have read it twice and I'm still not getting the whole picture or I'm just afraid that I might not know what I'm talking about or that I might make a real estate purchase and dig myself into a big whole mess.
I just recently got on Deans website and read through some of yours questions and answers and sat back and thought that if all the people in DG family can do it and that if they will help me with questions that I might have then, maybe I have a chance to be successful like they are.
So here is my first Lease option deal:
I have found a house in my neighborhood that has a for sale sign on it and when I called on it and talked to the seller agent and asked some question on it and come to find out that the seller has moved and renters are in the home as we speak. I asked him if the seller would be interested in a lease option and he said that that might work if the seller agrees on the contract. He also said that the seller just wants to sell the house or just get a income coming in to just cover the mortgage. I told him that I would write up a offer and set up a time where I can actually walk through the house to get a better look so that I can come up with a offer.
- House currently has a renter
- listing @ $ 185,000
- On market for 3 months
Please help on what I should do next because this sounds like it might be a good deal if I can come up with some creative ideas like leasing it out to the same renters and making a little profit a month until the economy picks back up and then sell it for a profit.
Thanks
Greg
i'm a newbie also so take my comments with that in mind. find out what his loan balance is so you can make a workable offer that will allow you a profit should you buy or flip it. find out what the comps are in the area for both sales and rental rates. also verify general condition. but what do i know. that is why i am becoming a student here. good hunting.
Thanks Jerry, anything will help.
Can someone help me with these question?
1. Who pays for the appraiser?
2. When an agent works for the seller, does he/she get some kind of commission off of a Lease option?
3. How do I find what the comps are?
4. How do I find the rentals rates in the area?
Thanks
Greg
Let me try to help. I am not a lease/option investor, my partner Jeremy and I buy and hold properties. But anyway, if you are working with an agent he or she will get you the comps in your area. Remember you only want comparable houses that have SOLD in the last 6 months. They should also be able to provide you with the current rental market pricing, or just read your daily newspaper on apartment or house rentals and you be the judge. I would think that you will be responsible for the appraisal with your own funds and this will come in the qualification time area. You should get that back at closing if it is an outright buy. The seller pays all monies to the agent. But if this a lease option you might side step the whole purchase process and have a real estate attorney draw up the necessary paperwork for the deal. I hope this helps clarify some of your questions. Good luck to you and never give up...Jan
My search feature isn't working today.
Greg, you have a great first name. I have learned about one of Dean's students that really does an awesome job with lease options. His name is Greg Murphy. Soon, I want to do what he is doing. Anyways, look for his name on this site, read his posts and comments, and learn.
If you can't find him on this website, his video is on http://www.deansmedia.com/greg.
A small part of his story is in the book "Profit from Real Estate Right Now," (p.71-73) and the telephone interview in the publication "Dean Graziosi's Student Secrets" has the most detail.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus