Lease Options to CashFlow

[Braheim Wilson]

I have a opportunity to acquire (5) properties thru a "15 year lease option". Now here is the break down lease #1 $1600 : 2 properties 1 is a duplex that will pay the lease. the other is a SFH needs cosmetic work but will cash flow $800-$900 when down lease # 2 $1000: sfh lease #3 $1000 : sfh lease #4 $1000 : sfh total investment : $4600.00 if /when I buy all the leases I will cash flow $1538.00 per month. after paying the owner his money. I'm just starting out so I have no capital. I'm working. so I figured I should buy 1 at a time. bc I can't get a small loan or borrow the cash to buy the leases. what does BP Say?

[Joe Villeneuve]

First, why are you contracting multiple properties under one agreement?

2nd, don't do it.  Your handcuffing yourself

3rd, your description doesn't sound anything like a lease option.  All you said were monthly payments attributed to each contract, and referred to them as "lease payments".  Where's the option (s)?

4th, I'm not sure where to begin here since, as I stated in #3, your description doesn't have anything to do with a L/O.

5th, each property needs to be a separate agreement, and each agreement should actually be 2 separate agreements...the lease agreement and the Option agreement.

6th, there's no mention of any Option Consideration...or option price for that matter.

7th, a 15 year agreement?  Why 15 years?