Question for those of you who are doing it now and a good point of discussion…how much are you getting for homes in the midwest on a L/O up front at the moment. I’m hearing from other investors in MI that for most starter homes, middle income, about 1K to $1500 is all we can get at the moment for the lease option. What are your experiences in the Midwest?
Sorry, dont live in the west.
BEaver124
OUCH!
Smells like trouble down the road with only $1500.00 option money. You don’t have “serious” tenant buyers on your hands…you have renters.
Qualify and set the ground rules.
TB: “We only have $1500.00.”
You:Oh, I’m sorry…we were looking for more like $6000.00 for this particular house. Can you come up with more?"
TB: Well, maybe $3000.00
You (just made $1500.00 by the way… ;)) Tell you what…What if I finance the rest for you at 0%? How much can you afford per month…$300.00?
TB: Maybe $250.00
You: Alright…I can get you into this house today with $3000.00 and I’ll finance the rest at $250.00 a month til it’s paid off at 0% interest, but only if the money comes in on the first of the month. Is that fair?"
$1500.00 for an LO is merely a renter who’s gonna trash the place because they have no real interest in it and nothing to lose if they do.
Set the rules and play by them.
Respectfully,