Local real estatse investor has options to lease. here is one of his ads:
Naperville
4 bed/ 2 bath / Hardwood floors / Sunroom / Hot tub for 6 /Located in the heart of downtown Naperville/ Walking distance to train
Attention Lots of equity in this property
Monthly $2800
Down $10,000
Price $439,000
Credit $200/mo for on time payment
Term 3 years
I am starting as a real estate investor is it good to buy from and investor such as this? I know for a fact this area is HUGE and he might be right on the equity of the home here. my question is that, if it is good to buy lease option from a real estate investor to invest?
It might be a good idea to invest in this but here are some ideas. This seller may have bought this house to lease option for a profit and is at retail or even higher which is OK if you want to buy it and live in it and can not find a better deal. In this case there will probably be better deals out there.
Another deal may go down like this. The owners has tried to sell and decides to lease option as he has to move by Sept 30th. They own the house below but are willing to lease it for $2500 per month and the option price is $375K with $5K down. Boom you grab it and lease for $2800 with the price at $439K and get $10K down with the same or a little less option credit monthly. You just made a ton of money up front and some $300 per month plus even a bigger pay day in three year. Pretty slick. I wish it was my idea or it was that easy to do. They are out there but you need to find sellers where time is running out. Look for property listed in MLS for a long time or even expired listings. LOL