Lease Options.

General Real Estate Investing
1

I am new to REI and will likely start with wholesaling, but I was wondering exactly how lease options/sub2 deals work? What do you tell the seller and how do you cover yourself if the tenant ecides not to buy?

Thanks,
Chris

2

Don’t do lease options in Texas, at least not before you learn about Texas laws concerning them.

3

Thanks, I am hoping to start with wholesaling to get some capital and give myself time to learn the other investment strategies.

4

if you want to learn alot about them and the right way WITHOUT getting taken to the cleaners by a ‘GURU’ try

http://www.naked-investor.com/

5

He should not do lease options in texas because texas has special law regarding lease options that is not covered by naked investor.

6

Thanks for the advice. Any is appreciated.

7

we’re aware of that Fadi

8

Actually, lease options can be done in TX, and I know a few who do them exclusively there. You need to tweak the contracts to as to comply with the TX code, which is not as restrictive as some think. Lease options are not illegal in TX.

9

I do not recall saying they are illegal. I said do not do them until he reads the law and understand it.

As far as investors still doing them, yes they do. Now, have their methods been tested in the court system yet though? We have discussed it with 3 lawyers, and we have debated it with Lou Brown.

The bottom line is, until there is case law to go on, you are going in an uncharted waters and it is up for interpretation. That is totally up to you.

http://www.legalwiz.com/freearticles/legislation.shtml

10

Thanks guys I appreciate all the input. I may venture int it one day, but I need to learn something easier like wholesaling, first.