Hello all,
I am very new to investing in Real Estate but very interested. Currently my father has a small business in Belltown and I would like to move him to a place that would offer a lease w/option to buy or something is similar so that his money is not being thrown away every month for rent. Any ideas?
He loves that area and it seems as if many investors have been thriving and moving fast on this section of Seattle. I want to get involved now.
Thanks,
Coogi 
when you’re considering a lease w/ option to purchase, just be sure you’re getting involved with a seller who knows what he/she is doing.
also, make sure your attorney understands it as well.
little point to consider - if the seller has a mortgage on the property, then a L/O is not viable because it would violate DOSC and lender could call loan due. the other option is if the property is placed in a land trust. there used to be a lot of debate on here about land trusts, but has since died down considerably.
land trusts can be used in lease options very effectively because lenders do not consider such a transaction a violation of DOSC (due on sale clause), basically because of the situation a land trust presents. it’s safe and secure.
of course, some people will tell you not to worry about DOSC, that the lender will probably never find out…but why take such a risk, have your father paying rent toward a purchase only to have the seller default on a loan that the lender calls due because of the violation. the bank will not honor your fathers consideration.
good luck.
Consider me among those who say don’t worry about the due on sale clause. As someone who has been involved in almost 400 deals during almost 15 years of investing, most being options of one type or another, I have never had the DOS come into play. Not once. And speaking with other investors I am not alone in this regard.
Using some form of a lease option is definitely a smart way to control and invest in real estate. Do it correctly, use the correct paperwork, and you’ll be fine. And now, with the markets changing to the buyers side, is the ideal time to be scouting out deals. They are plentiful.