An Awesome Lease Option

Wow, trully awesome. I agree with you, REI can beat anything and still a great business to start even without money or credit.

2 thumbs up on your deal!! Blessings to all. LA

We hope to be doing some lease option deals soon. Glad to here about someones good deal. I am happy for you both.

Steve and Veronica.

Congratulatins Gary & Jill! Good deal!

Lea
SPR Property Solutions, LLC

Thanks to all you guys, as you can see in Dean's last book, "Your Town", we've
made over $ 500K in RE investing, but have always done it "old school"...Now we've started to "think outside the box" & use other investing tools to continue to show profits in this market. Gary & Jill

Congratulations on a great deal! That's fantastic! I have a few questions for you, Gary and Jill. #1 - How were you able to lock up a lease option so soon after closing? #2 - What kind of financing did you use to originally purchase the property? #3 - Was this property an REO, something on the MLS, or what? You mention that it was "listed". I was just curious as to how you got such a great reduction in the purchase price. #4 - I assume that you're providing funding for the renter/buyer; or else why would the 10K down matter to you? Or was this just a down payment to you to show good faith? What are your arrangements with them in this regard? Thank you so much for sharing any info you can with me and, once again, congratulations!

Steve and Patty
(Integrity Ventures)

To answer your questions : 1-We had worked with these people before on another property we had for sale, they wanted own financing, but couldn't get their down payment in time; we had someone else buy the house...so they were just waiting.2-Cash, we always buy with cash on all of our properties to date.
3-It was listed on MLS, Jill called the 1st day it hit & we viewed it the next day. It was an elderly woman, & the 1 yr anniversary of her husband's death was coming up in a couple of weeks, so she wanted out. She was asking 59K, we offered 40K, she countered at 43K, so we met in the middle at 41.5K; since we had cash, I don't think she wanted to miss out. 4-No we are not providing funding for the tenant-buyer; the $ 10,000 is a non-refundable deposit/down payment, they pay $ 700 rent for 24 months & have the option of buy the house for $ 68,000. We will give them a rental credit of $ 100 per month at closing. So, at the end of 2 yrs, we make a total profit of 68K (sales price) - 41.5K (purchase price) = 26.5K + $ 9600 (net rental income) = $ 36,100 - $ 2400 (rental credit) = $ 33,700 net profit on a $ 41,500 investment ... plus keep in mind that the tenant-buyer is responsible for all maintance & repairs(including roof, central a/c etc.) & there are no contingencies, if they can't get a mortgage or elect not to buy the property for any reason, they don't get the deposit back. I hope this answers all your questions. Gary & Jill

Gary and Jill,

Thanks for your answer. It was very informative and helpful. My husband and I are about to make our first offer on an REO. Hopefully we'll be able to flip it but if not we can rent it out or do a lease option. It needs many repairs so we are going to make a very low offer. Wish us luck!!!!!

Patty

Glad it helped. Good luck with the REO offer, hope you can get a great deal. Sometimes a bank owned property is the best place to start because they are not emotionally attached to the house, so they don't get insulted with low ball offers.

Congratulations you guys, truly inspirational. I also follow what you do and how you do it and put into practice. Results will come i know!!

Martin

Thanks for the comments, they're greatly appreciated. Gary & Jill