All Forum Posts by: Account Closed

Hi Brian:

As a specialist in lease options having been doing them since 1994 I can tell you that all three of your examples can be done as lease options.
#1 can be a sandwich lease option as long as there is a good spread.
#2 & #3 lend themselves to a wholesale lease option deal.
If you are looking for control without ownership a sandwich lease is the way to go on #1.
If you are looking to flip pretty houses and cash out quickly a wholesale lease option is the way to go on #2 & #3.
Lease options require no cash and no credit so I find them to be among the best ways to deal with single family homes. In addition a wholesale lease option is a far better way to deal with an upside down property than a short sale in my experience.
Good luck,
Joe

Arthur it depends on what type of deals you are looking for with regard to the MLS. I specialize in lease options and wholesaling ugly houses. I generally do not look for ugly houses in the MLS but get the vast majority of my lease option deals from the MLS mailing postcards to the sellers. I got my first one back in 1994 and it took 31 days to close from beginning to end. There is no luck involved with the MLS if you know how to work it and for my purposes it is far and away the best lead source out there.
Good luck,
Joe

Hi Stephanie:

As a mentor/coach I teach students the art of lease options and ugly house wholesaling and as you heard from the comments above it's not the niche that runs people out of the business it's their want to.
Good Luck,
Joe

Simon you can do a skip trace on the owners. There are plenty of companies out there if you Google skip trace. One company is Find The Ownwr . Com.
Good luck,
Joe

Those may be the rules Jon but I've never seen a lending institution call a note that is preforming. As long as they are getting their money they could care less where it is coming from.

Hey Brian how did the deals you did in Australia go I'm looking to hook up with some investors there with lease options.
Thanks,
Joe

Hi Anill:

Don't worry about the due on sale clause because no transfer of title will take place until you purchase the house. The numbers look good and a work for equity situation is not a bad way to go as long as you have the funds to cover yourself.
Good luck,
Joe

Hey Kay:
You have gotten some great advice from both Michael and Tim. You should think about becoming a transaction engineer in this business meaning you should be able to work with both the Ugly house and Pretty house parts of the business. Ugly house wholesaling and lease options both sandwich and wholesaling are probably the best way to start your career. Both niches do not need cash or credit to get started and are relatively easy to learn. The most important thing is to get started. Get out there and start doing it. Find yourself a good mentor or get hold of a good course and go out and do it. A good mentor will cut your learning curve down and keep you out of trouble. The only way to learn this business is to start doing it.
Best,
Joe

Hey Kay:

Kay if you are working the right market and talking to the right sellers you're not going to get cursed out. You need to find out what's going on with the seller and the easiest way is to ask. I always ask "tell me a little bit about what's going on, why are you selling the house?" If they are in need of debt relief which is what motivates just about 100% of lease option candidates they are going to give you everything you want to know. Trust me you're gonna get way more than you want to know. Once you know what the problem is the magic question is "If we can agree on price and terms and assume responsibility for regular repair and maintenance would you consider a lease option/rent to own?"

This ain't rocket science so keep it simple.
Best,
Joe

Hey Zachary:

Let me try and simplify this for you. Having been doing lease options both wholesale and sandwich for the last twenty years I can tell you the one basic reason sellers do them. Debt Relief. In my experience sellers that need (not want) to get out from under a property quickly for a variety of reasons are looking for debt relief, pure and simple. I have never put up more than $10.00 as an option consideration since I started working with lease options back in 1994 so that should tell you that cash is not the motivation for the seller.

If you are in the right market talking to the right people you'll have no problem controlling a house without ownership through a sandwich lease option or wholesaling the property using a lease option using $10.00 as the option consideration. I do it all the time.

As far as the downside to lease options it's no different than any other area in real estate. If you have full disclosure, know what you're doing and don't make promises you can't keep you've got no problems. The people that get into trouble in real estate or any other business generally violate those rules.
Best,
Joe