First of all, I want to thank everyone who posts on here as it has answered alot of questions I have had. I’m new to this and have not made my first deal yet, but at least I have gotten over my fear of rejection. My question is about the lease option. I live in central illinois and most of the sellers I have contacted will not do a lease option…is the lease option more common in certain areas? There are some who will consider contract for deed purchases, and what I guess I dont understand is aren’t lease options more commonly for a period of 1-2 or even up to 4 years? I’m not understanding why they would rather do contract for deeds for a longer period of time. I think just starting out I would like to do the lease options first. My main thing is to simply help those who are good people who have made bad choices and ruined their credit…I know this all too well, so I can relate to them. I’d like to be able to help them purchase a home they may have otherwise not be able to get. I realize that some people just do not understand lease options, but wanted to get some input from you other investors who do them on a daily basis.
Any info would be great for this newbie…thanks!!
You’ll get alot of these types of sellers. They’re not motivated enough
to get rid of their house. The best that I could recummend is try
attacking those rental ads in the paper or dated 4sale by owner ads!
You’ll find that there are plenty of sellers out there who just want out
and won’t mind if its today or in 2 years as long as they don’t have to worry about the mortgage!!!
Stay with it!!!
Exactly right ! For RENT By Owner is where the gold is because they are ALREADY landlords. Trying to convince a guy who wants to sell his home that he needs to become a landlord first is going to be like trying to push a rope.
Regarding to L/O, I agree with money-money-money. I have talked sellers who think they are MOTIVATED, but Not. They want to sell their house; however, when I mentioned about L/O, they usually said NO. Their best interest is to sell the house and get the cash and move on. Although I mentioned I will make (technically tenants) monthly payments, they don’t change their mind. I believe that (1) they are NOT motivated enough or (2) they don’t understand L/O.
Like all of us here, our No. 1 goad is to find motivated sellers and help them so that we both can creat win/win situation here.
Keep looking…you will find one. (that what I am doing!)
If you find a seller who needs the cash, why don’t you explain lease options to him then suggest he refinance his loan and then work with you on a Lease Option Deal?
He gets his cash, he gets out of the house, gets monthly cash flow and cashes out for good down the road, while YOU get a big pay day for helping him.
I dont think it depends on the area as much as the seller.
Any technique you use will work in the right situation with the right seller in any market.
Lease options are no exception. They will work if you present them intelligently to the right seller at the right time. Do you have the patience to find the right seller in your market? Or, do you need a couple different techniques in your arsenal so you can make several different offers to the seller and let him take his pick on what works for him?
Think about it…
Thanks for all the input…guess I just haven’t found anyone who is very motivated yet. Maybe they wont have luck selling any other way and call me sometime down the road…but until then I’ll keep looking!!