I have a lease option that I have tried to assigned with no luck
it is a home on the canal of a popular lakr nice modern home no repairs or updates needed
today value is $ 301k I have a two year option for $285k with 2.5 k down and 1.8k per month
The home was rented the past two years for 1,850 per month
It should be a easy deal
I would love to hear any comments
Evidently, you are not making it clear what the benefits of this deal are to future/potential homeowners.
Just because you advertise “lease/option” or whatever, doesn’t make it attractive to the right buyer.
There’s got to be a (perceived) benefit for people to respond to.
What is that benefit? What’s the advantage you’re offering? It’s got to be (as good) better than whatever the prospects are seeing advertised.
Not to mention, that most prospects are roughly familiar with “lease options” today, and most believe that the house will be over-priced, since most lease/options offers ‘are’ in fact over-priced, as l/o’s are routinely used to sell upside down houses.
The market has figured this out after 30 years of seeing overpriced l/o “opportunities.”
That said, if the house ‘wasn’t’ over-priced, that would make many l/o buyers suspicious of the deal, not more attracted to it. Go figure.
So, what’s the solution?
Get the buyer’s mind off the price… Market that home (better and more precisely) to the exact buyer that would want a home on the water/canal, regardless of price.
Make the the lease/option so attractive that it would be stupid to pass up. Such as offering a five-year lease/option with enough rent credits to pay off half your profit margin over say, coincidentally, sixty months. You still get at least the other half, when the buyer exercises his option, which he will, because the house will be worth more than his option price is in five years …unless you …or the seller gets greedy.
You could offer more, such as give the tenant/buyer 100% rent credit the first year. Or convert the l/o to a Land Contract after so many months of on-time payments (working that out with the original seller in advance, of course). Or simply selling on a Land Contract at the get go, and taking your fee as the down payment, and coordinating/monitoring the deal, in exchange for your fee.
That’ll give you some thinking to do.
Bottom line: Make the terms of any deal you offer …incredible.
If you still have had no luck then I will take your deal and show you how to do a lot more if you would like a partnership arrangement? :rolleyes
Typically, if a buyer who is credit impaired needs a lease purchase, he will NOT be able to close on a new loan within 2 years on his own merits. In future deals, I would recommend longer term lease purchase contracts before you think to re-market property.
Regarding selling this deal to an investor, where is the incentive? A potential $50/month profit for 2 years with an $1800 liability if it is vacant, and where the potential credit impaired occupant cannot qualify for a new loan to cash out in two years!
Any potential buyer who can qualify for a mortgage now or in two years will not want to buy this deal…he can buy any deal he wants at a more competitive price than a house listed on a lease purchase, which is typically at the high end of the market.
Hope this helps.
Rob