How long does it usually take to find someone to lease option or rent to own? I know it probably depends on the home and the neighborhood, the usual stuff people look for, but I have a couple moving in two weeks, he’s in the military, and being transfered out of the country. I’ve been getting calls for three weeks now and have two weeks left. We’re doing sub-2, and I would like to have someone in the house before I close. Getting alittle nervous. Would appreciate your advice!!!
It takes as long as it takes you to get a person to say yes and give you their down payment. If you have the house priced right and the house isn’t in the war zone and it isn’t weird or anything and if the payment is good then you should be able to get this done in a week to 2 weeks from start to finish.
Plus you should always ask the seller to make the next payment or two so you wouldn’t have to worry about all of this to begin with. It won’t happen all the time but there are cases where it happens.
A word to the wise. On a lease option you should collect at least $5,000 for the non refundable option consideration fee. This could make it take slightly longer to find someone with the down payment.
Why?
It costs approximately $5,000 to have a lawyer defend your option in court when they don’t exercise it and want the money back claiming equitable interest. That way, worst case scenario, you will break even.
I know of an investor that it took him almost two years and it cost him over 50K. The best way is to TRULY screen. But you really never know.
Do you know why it cost him that much? I like to know the details of situations like this so I make sure I position things to avoid that level of problem.