Just wondering what your guys’ experience has been like in terms of finding good tenants compared to filling properties on L/Os? How big is the pool of individuals who are looking to buy on a lease option?
I cant imagine ever seeing myself in that situation, then again, I cannot see myself doing a lot of things most people do :).
I’d imagine that with the amount of people losing their homes today, the L/O is probably a pretty good strategy right now, no?
Thanks.
There is currently a lot of hype about lease-options. I have done lease options and can tell you for a fact that they are really just rentals. The benefit of getting the option premium is often offset by the time you wait to find a person with bad credit but a big pile of cash. In addition, the vast majority of lease-option buyers never buy the property.
Good Luck,
Mike
Lease options are just glorified landlording. Your success (or failure) of a lease/option is largely affected by your state laws concerning such, your lease and option agreement(s) terms, your expected option fee, your expected monthly payment, and you.
All that said, I would still prefer to put somebody in on a lease option vs. a straight rental agreement, if, IF, as the landlord, your goal is to actually sell the property.
In general, most L/O’s do not actually purchase. However, your odds of closing greatly increase, when you, as the landlord, become actively involved in helping the T/B move toward that goal of buying.
Raj