22 year old thinking about wholesaling lease options

[Andrew Emery]

So this is my story: I just graduated from college and have been extremely interested in REI for about 2 years now. My original plan was to purchase a house using an FHA mortgage and then rent it out while I lived there. However, I got a pretty awesome job offer in Chicago that I really can't refuse so unfortunately I will be paying rent in an apartment. My desire to invest in real estate is as strong as ever but I don't think it would be responsible to do a traditional buy and hold from out of state as my first investment project (and I don't have the down payment that would be required).
Recently I came across the concept of wholesaling lease options and am extremely intrigued both because I feel that it would be an awesome way to enter the game with little to no risk or money out of pocket and it seems like it can be done in any market/economy/state regardless of where I live.

I ask, what do you guys think about wholesaling LO as my first RE venture from Chicago? Thoughts on Adam King's program or others? Would I have problems with my credibility when talking with sellers/investors/buyers/agents as a young and inexperienced investor? Am I way off in my logic?

This forum has been such an awesome source of RE knowledge for me and any feedback is greatly appreciated. Thank you!

[Brandon Turner]

Hey Andrew Emery I'm not too sure, but I'll bump your question at least. I'm not even sure what wholesaling lease options would be. I'm guessing it's finding a motivated seller, arranging a lease option, and then selling that lease option to a tenant-buyer who then does a lease option - and you make money for bringing them together. Does that sound about right?

[Brian Gibbons]

Andrew Emery Hi and welcome to Bigger Pockets.

I coach lease option assignments and so does John Jackson and Bill Walston.

You could get a course or hire a coach.

Here are some docs to help you:

http://www.biggerpockets.com/files/user/REISkills

Here are some fourum posts about lease option assignments

http://www.biggerpockets.com/search?utf8=%E2%9C%93&term=Brian+Gibbons+lease+option

What ever you, understand you are only as good as your training.

At 22 you have done alot of studying at college.

The experience talking with Sellers, Buyers and Realtors will be invaluable.

Questions to ask Realtors:

1. "How often do you get bank property listings?"
2. "What areas do you usually list properties in?"
3. "How often do you deal with investment buyers?"
4. "Do you have any listings which might be a good deal that I could look at?"
5. Do you find sellers with little or no equity? Do you list them?
6. Do you find Buyers that are close to financing but need more time to get qualified for a mortgage?

1 - 4 are wholesaling questions.

5 - 6 are lease purchase questions.

I bet John Jackson could pipe in here.

Best Wishes to you,

Brian

[Account Closed]

Hi Andrew:

Wholesaling lease options is a great place to start and I've been working with lease options since 1994 so I have some experience in this niche. My advice is to get a mentor/coach and get after it. I'd be happy to speak with you further about it if you want.
Best,
Joe

[Jonathan Pliszka]

Andrew Emery Always nice to see young Chicago investors like myself! Have you considered purchasing a duplex or a three-flat? If you're willing to live in an area that's not River North, Old Town, Lincoln Park, Lakeview, Bucktown or Wicker Park...this could be a viable option. I purchased a three flat in Old Irving Park (think Addison Blue Line) and am currently living for free from the rental income of my other two units. I too used a FHA loan. Shoot me a PM if you're interested in chatting further. Cheers!

All the best,
Jonathan