All Forum Posts by: Account Closed

Hey BP community!

Wondering if someone can explain lease options to me like I'm a 3 year old. I went to a small seminar about lease options last night and still couldn't wrap my head around it.
I guess my main questions are: - Why would a seller agree to this as opposed to just selling their home for cash? - Does the seller still live in the property, while the buyer/investor pays them the rent? And, as far as having multiple lease options, it seems as if the buyer/investor would have to have a very large amount of monthly cash flow to be able to lease multiple properties each month.

Again, I could have this all backwards!

Thanks so much in advance!

Jon Holdman - Thanks so much

I will soon be applying for a HELOC in order to get some start up funds for my flipping business. I'm trying to figure out the best, and most realistic number to give the bank in terms of my home value. I of course want as much as I can get, but want to also make a strong argument for giving my home a high value, as I know they'll be sending an appraiser.

I'm wondering if I should pay more attention to the price per sq. ft. that homes are selling at in my area and use that to figure out my number, or strictly look at homes my size?

Thanks in advance.

Sean Brennan - No worries :) - Any advice is good advice!

Sean Brennan - What are you thinking in terms of aggressiveness?

Sean Brennan - Not yet, I'm waiting until I secure some financing, which will probably take 2-4 more months. But, I have slightly re-thought my approach. Perhaps you can give me your opinion.

I actually just moved into in my target neighborhood, and have picked out several dilapidated properties in the area to go after. My plan is to walk my dogs around the neighborhood as much as possible the next few months, meet as many neighbors as I can, and to be seen as a friendly face. When the time comes, I am thinking of having my wife bake some of her amazing cookies - Then leaving a little package on the doorstep of the homes I'm targeting, introducing myself as their new neighbor, and mention that I'd be interested in buying their house, (or another house they know of) should they be interested in selling. Some of my neighbors have been in the area 20-40 years and know many people. I am thinking of offering them a small referral fee if they hear of anyone looking to sell and it turns into a deal that closes. This also goes for the mailman (who also lives in the area).

Anyway... this could change - But some things I'm considering.

Steve Babiak - Wow, thank you for such a detailed response. I've been wrestling with the math of it all. Your post really helped me get a clearer picture of my situation, which seems like a decent one. Thx again!

Harry M. - Awesome. Really appreciate it

Harry M. - Great info, thanks so much! So your home was essentially worth about 150K and fully paid off and the bank approved you for half? Can you tell me what your monthly payments were on the amount you used? That is, if you're comfortable doing so. Thanks again.

I am seriously considering taking a HELOC against my home and using it to start my flipping business, or possibly as a down-payment on an income property (but most likely flipping).

Would love to hear from those who have taken a HELOC (for whatever reason), and find out: What your LTV was. How how much you were allotted. How much your monthlies were. And how much you were able to use at once?

My situation is this: I owe $413K to my loan. My home value is somewhere in the $650-700k range. I'm hoping I can get a HELOC of around $150K to start my business.

Thanks in advance.