If you already know that your seller is motivated and you know they’re need to sell, what do you all think is the best way to break the news that your actually going to be lease optioning their home to someone else? How do you guys inform the seller of that? How do you break the news?
Also in several books (Wendy Patton’s & Peter Conti’s) i’ve read, they advise us to make the contract contingent on my finding a tenant buyer. Why would the seller ever agree to this? Why wouldn’t the seller just lease option it himself once he knows how to, especially if the contracts contingent on me finding someone else to live in their home ? Any real life examples would be great too. Thanks.
You need to be forthcoming and offer full disclosure from the very beginning. Not more than two minutes, probably less, into the first conversation with the homeowner, they are aware of what my plans are with their property. If they are opposed, I’m fine with that. Saves time and I move on.
Anyone have any ideas concerning my other questions?
Sure. The seller doesn’t have the know how that we do. Nor do they have the paperwork. So how will they put together a lease option?
And as for why would a seller do this, the answer is easy: debt relief. The homeowner has a problem, and it’s always financial. We provide the solution in the form of taking that payment off their back, in one way or another.
I’ve been doing L/Os for 6 years now and I can safely say that no seller I’ve talked to has ever done one on their own. The only reason L/Os seem easy is because WE know what we’re doing! Avergage Joe Homeseller hasn’t got a clue how to sell their home traditionally themselves, never mind with creative financing. Why do you think 90% of FSBOs end up listing with an agent? I’ll give you a hint… it’s NOT because selling houses is hard.