I have my first appt to see a home and meet with the seller tomorrow. Im asking him to lease option it to me as hes being deployed, in one month.
Asking price $170k Owes $155k He has a 30 year loan with pmts of $1,280 PITI. He will rent it out if he cant sell it he’s already agreed to with someone. I mentioned selling to me on a lease option. He never heard of it but will consider it, wants to meet.
As a lease option what do i need to have with me when we meet incase he agrees at the time? Can i lock it in at the time, and whats the best way to explain the benefits to him?
Look foward to hearing from all.
Also does he stay on the deed? Do i need the deed in my name? Do i get an escrow Co to make payments?
Thanks
All you need is a lease option agreement written in your favor which every lease option course has (I hope you have one).
With a lease option the deed stays in the sellers name, but a lot of investors like to get the seller to put the deed in escrow and/or give the investor power of attorney so you can close the deal without tracking the seller down again when the time comes.
I know this is your first meeting but next time you should make your offer before you go out to see the house. There are few things more annoying in this business than to have what you think is a hot lead only to show up and it becomes obvious the seller has a VERY different idea of what a deal looks like than you do. Trying to explain, educate, negotiate and salvage the deal there just totally sucks IMHO.
Somestimes I still get overly exuberant and run out to a house I haven’t made an offer on and I ALWAYS kick myself afterwards! You want to have a verbal commitment from the seller on the basic terms of the deal (rent, rent credit, price and length of lease) before you go to look at the house. What I find is that sellers will often say that they’re interested in doing a lease option, just to get you to come out there, hoping that you’ll fall in love with the house and they can talk you into paying cash.
So try to get into the habit early in your business of making an offer either verbally or by a letter of intent and get the seller to agree to the terms before going to see the house. This dramatically improves your chances of walking alway from the meeting with a signed contract.
salsadunes- do you mean the best way to explain to him the benefits or what are the benefits?
herbster
The best way to help him understand the benefits? And do i need a lease contract and a purcsahe contract? What about the deed part? do i get put on deed and him off? What is the best way to handle this?
Thanks
I believe Michael on the other forum you were on gave you a pretty good answer. Just one thing for you to remember, never be a Motivated Buyer. herbster