All Forum Posts by: Hugo Garcia

Hey guys,

Based on your experience, are renters equally as motivated as sellers (both groups are owners of course) of doing lease options?  Or is some group more motivated than the other?  And why?

Thanks

Hey Todd,

Thank you so much for answering all the questions that I've had so far.  I truly appreciate it.  

If any more questions pop up, I will definitely let you know.

Have a great day!

Hey Todd,

Thank you for your reply.  I really appreciate, your lessons learned the hard way is exactly the type of advice that I am looking for.  You have opened the Pandora's box  cause now more questions arrived that I didn't have before.  Here are the questions that I have:

1.1  When you say don't offer rent credit, what do exactly mean by that?  Offer it to the seller or the tenant buyer?  (Sorry, I am complete noob).

1.2  How much do they add besides the non-refundable deposit?  Is it optional or do they have to do it?  What happens if they don't do it?

2.1  How much is the renewal fee if they decide to renew?

2.2  Why you should never mention the Lease in the option agreement or the option agreement in the lease.

3.1  To who should I not give them a copy of the option agreement?

3.3  Why should I not file it at the courthouse?

Thank you.

Hi BiggerPockets family,

I have a couple of questions regarding Lease Options:

1.  What are rent credits? And what are they used for and considered for?

2.  How to determine how many years to do a Lease Option for? What is the criteria and what is the most common used time frame?

3.  Option Deposit Flat Fee vs 3% of the house price. What is the difference, and is there a problem legally if I simply choose to do a flat fee?

Thank you.

Thank you for your reply @JD Martin, let me explain a bit more.  There is a vacant apartment in front of my apartment.  I would like as an investor to talk to the owner and tell him that I can advertise it so that I can get some one to rent it out.

But legally, what contract or agreement do I have to set it in place with the owner so that I can advertise and promote it to rent it out without being licensed an make a profit out of it?

I am in CA btw.

If I want to rent out someone's property.  I don't want rent to own, I simply want to rent it out.  What type of contract or agreement do I need between the property owner and myself so that I can legally advertise and promote the deal?  

Yeah, this is definitely not my main focus but I definitely see the opportunity literally in front of me everyday.  So, legally how do I have to word getting rents for the landlord without getting into any trouble and how much can I ask him, I was thinking of asking for last month deposit down as payment.  Is that good (meaning, is that an option that I can do for this deal)?

Also, do I need any type of contract while doing this?

Hey @Skylar Simpson,

Yes, I do have a specific example.  The apartment in front of me is vacant and I want to get some tenants in there.  I found some tenants in the apartment below me out of accident and I got a 5% "finder fee" which was awesome just for the possibility of it but it was almost no money.

How much can I get to find tenants in that apartment?

Thank you

Hi everyone,

Can you get renters on a property as an investor, if so, under what deal structure and how much do you charge for this?

Thank you.

Hey @Matthew Barba, thank you for reply and for bringing clarity to my question.