Lease Option investing

[Bryan Field]

Hi All,

Does any one in the San Diego market have experience or advice about Lease Options? Finding a motivated seller and matching them with a short term lessee (tenant-buyer) to take over the property.

I'm new to real estate and have 0 capital to make any kind of down payment for a rental property. While researching i have found that my best options to get started (while saving money to eventually have a down payment) might be pursuing lease options (Sandwich lease options) or even investing in other markets via Turnkey investing that requires much less money upfront than the San Diego market.

I'm looking to connect with investors in San Diego to learn from and would appreciate any advice!

Thanks!

[Tim G.]

@Bryan Field my style is to go make the money I need to then go buy deals. The idea of borrowing a down payment makes me feel nervous and rushed. Most private lenders are going to want you to have some skin in the game, or they are on the hook 100% for your deal. The higher the risk the higher the interest rate. I'm not sure I see a duplex in San Diego earning enough monthly income to cover the note on a private loan. 

Many private loans are interest only and above 10% that would put you at a $4166 a month payment on a $500k duplex without considering taxes, insurance etc. That is scary math to me. If you could score a low interest long term private loan maybe its possible then. 

Are you opposed to working and earning the money for a down payment? My entry into real estate was funded by hustling an outside sales job and wholesaling (2012-2013) today if I needed to stack cash in a similar manner I would get my license and start hustling for listings. That to me is the fast track to getting capital for buying a home and having more access to better deals.