I have a seller interested in a lease option. The Price is 250,000 with a 2500 option fee due in 45 days from the signing of the contract.
My plan was to find a tenant buyer to:
Pay a deposit more than the option fee to profit
Make the monthly payment to profit
Tack on 5% onto the price if they choose to exercise
The Problem:
Im a newbie with no experience
dont have the 2500 so if i cant sell im stuck
What should i do
Why 2,500 option? couldn’t you have negotiated a lower option? you could try to talk the seller into making it contingent on you finding a sub-tenant. He gets your expertise to advertise and locate buyers without the hassle. IF you can’t do it, you part ways.
Don’t put any option money down (no more than $1 anyway)
Don’t make the seller’s problem, your problem. Always have a way out and a clear understanding with the seller that you will start making payments ONLY once you have your sub-tenant.
Make sure the price and payments are in line with what the market is willing to pay. If the seller is asking $250k and you plan on adding another $12k, but similar homes are selling retail for $220k then the house probably won’t sell.
Thanks to the both of you!!
You sound like you know just enough to be dangerous to yourself. Do a little research first, then do the deal.