OfflineJust left the title company with a $ 10,000 profit.
It was on a Fannie Mae foreclosure we bought last March for $ 31,000. We rented on a lease option for $ 600/month, with a down payment of $ 3000 ... the tenant only paid for 6 months so we evicted them, remodeled the bathroom, paint & carpet (spent about $ 2000). Sold it for $ 49,900 ... not bad for 2 weeks worth of work.
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Thats how to get it done!! Less work bigger profits!! congrats and keep making it happen.
God Bless,
Gorgeous Frazier
THATS SOOOOOO COOL. I WISH YOU ALL THE BEST IN YOUR REAL ESTATE ENDEAVORS... WHEN I MAKE SOME MONEY IN REAL ESTATE I WANT TO MOVE BACK TO JACKSONVILLE. I'M FROM MISSISSIPPI BUT I USED TO LIVE IN JAX AND I LOVE IT THERE. GREAT REIA THERE AS WELL....
WALT
Hello,
I am getting ready to do my first deal. The option that i will be doing is the "lease option". Can anybody help me with the correct documents and how to prepare them?
Thanks,
Tall
Since we own these properties outright already, we get a tenant buyer in, we just use a standard rental lease; fill in the appropriate blanks then in the addendum/other terms :1. This is a lease with an "option to purchase"
2. The lessee is paying a non-refundable deposit/
down payment of $ XXXXXX on the property for the right to exercise their option to purchase the property at anytime during the duration of the lease for the amount of $ XXXXXXXXX.
3. The lessor will give the lessee a $ XXX per month rental credit, that will be applied to the down payment at the time of purchase at closing.
4. The lessee is responsible of all necessary maintenance, repairs, and/or replacement of any/all needed items to the interior or exterior of the property.
5. The property is being sold "as is" condition.
There are no warranties, either expressed or implied. There are no contingencies to the sale of the property.
This way the tenant buyer takes care of the property & you don't have any repairs or maintenance on the property. Sit back, collect the rent, & wait out the term. If the tenant leaves, you have have the deposit for eviction cost, repairs & marketing.
The example from our last lease option(about 1.5 months ago) is we received a $ 10,000 deposit; rent is $ 700/month; rental credit is $ 100/month
if they buy; positive cash flow this year is $ 400/month; the price for the tenant to purchase is $ 68,000; we bought the property for $ 41,500; If we would have flipped the property in 1 week, we would have made about $ 10,000;
this way in 2 years we make $ 9,000 in net rent, plus $ 26,500 profit on the sale of the house = $ 35,500 - 2400(rental credit)= 33,100...and the best thing of all, we did not do anything to the property, at all...it was move in ready !
gary and jill. awesome you two.
WALT
funny reviving these dead threads. What is going on with you?
Tony
Go faster do more! GFDM!