Buying Flip Property With Lease-Option?

[Brandon G.]

I've been doing some reading and learning today and got to wondering: If a seller doesn't go for a subject to deal, would a lease option or perhaps a lease-purchase be the next best thing in order to get the property for a rehab and flip? Please advise.

[Brian Gibbons]

In Texas, I would never rehab unless I got the deed (sub2).

I like minor rehabs and JV w the seller.

Say $100K ARV and needs minor kitchen and bathrooms, everything else ok, eg roof, foundation, hvac, etc. Rehab costs $10K

WE BUY HOUSES offer .65 = $65K less $10K - holding costs $5K = $50K

That is a sh@t offer.

I say, 

"Mr and Mrs Seller, I can bring my money in on the deal, we can partner, I get paid when the house sells.  This will net you more money than the WE BUY HOUSES folks.  

Why?   The WE BUY HOUSES folks need to buy it, close, pay the costs to buy, and rehab it, pay the costs to hold, the costs to sell, and net a minimum amount of money."

You will net WITH ME

$100K sales price - costs to sell $10K - $10K jv fee - $10K rehab - $400 interest for private lender.

Place a lien on the property for private loan + interest + jv fee

Get a SPOA for JV

Get a listing for 97% of comps (ARV).

@Bill Gulley  @J Scott 

@John Jackson