All Forum Posts by: Jordan Capps

@Steven Chandler well I was thinking that if the tenants were actually planning to buy the house they might be willing to pay more per month. I've also heard to market the houses to people with bad credit, because bad credit doesn't always mean they don't get paid well. So while they are renting it that can give them time to build their credit and eventually get a loan to buy the house at the end of the term.

@Patti Robertson have you done any lease options that way possibly?

@Patti Robertson I've heard of several different ways to approach lease options. One source I've found has said that Its best to only target nice homes with little to no repairs needed. Note in the contract that I'll cover all repairs, pay taxes, and insurance. Try not to pay anything upfront to the seller and if they do require something pay first months rent. Then when I do find a tenant/buyer I would have them put down 10k-15k EMD and have them cover any repairs over $500. Then rather than keeping the EMD for myself I would save it for repairs or possible vacancy and also use that to pay taxes/insurance..

Just read over everything.. that definitely helps! Thank you very much. 

Hello I was wondering if somebody could possibly give me a real life example or examples you've done yourself of a lease Option deal and a seller finance deal. Like down payment you put down, sellers asking price, actual price you got it under contract for, monthly payments, how many years was the term and also the down payment, monthly payments, the term and what you sold it for to your tenant/buyer? I think that covers lease Option but I don't quite understand seller finance so an example of that would be awesome as well.. any info is greatly appreciated..

Well I believe trial and error is the best way to learn, from what I've heard from others it's pretty simple after you've done it a few times. I would market it as a rent to own and collect 10k-20k as a nonrefundable down payment from the tenant/buyer and keep that in escrow in case of damages or vacancy. I would put in the contract that they are responsible for any repairs over $500. They would be more likely to take better care of the property if they plan on owning it though. I do get the concept I just didnt quite know what exact payments would be on my end or my tenant/buyers end. I did watch some good videos on YouTube though after I posted this that gave me a better understanding. 

So I've really been wanting to do a few lease Option deals but I still have lots of questions. I was cold calling for some properties I found while driving for $ and came across a landlord. He has 20 properties but only wants to sell one. Said its just been remodeled and he wants 119k. I told him I could pay that but would need to do a lease option and briefly explained what it was but didn't explain it as well as I could have. Basically said it would be like I was renting it but then I would sub lease it out to another tenant/buyer. He said he has never heard of it but still sounded interested. I told him I would drive by and look at it and then follow up. Before I follow up though I want to have my numbers down.. so would I myself give him a down payment? Or would I give him a down payment From the down payment I get from my tenant/buyer? What all payments do I need from my tenant/buyer? What's a good down payment for a 119k house? Also lets say I'm paying him 900/month and that's the average rent in that area, would a tenant be willing to pay me $1200 since they are Renting to own? Also should I start looking for my tenant/buyer directly after I sign papers with the seller? Should I take paperwork to title company before I find a buyer or after? Really if somebody could give me an example of a lease Option with the numbers on a property from a FSBO that you have done yourself that would probably answer all of my questions... any info is greatly appreciated!