I’m trying to learn more about a Lease Option ( Rent-2-Own)
Great what do you want to know? Are you looking to buy on option, sell on option, do a sandwich lease option or wholesale options? Lots of areas to explore.
Can you explain the difference of (Buy on option) and (Sell on option)
I was wondering if it was possible if I buy a 100k home and put a down payment 5%-20% and do a rent-2-own
Have the tenet pay for a none refundable down payment. I don’t know if that would be a sandwich lease
@Scott Harper When you buy on an option you are doing a lease with the right to purchase directly with the owner of the property. When you sell on an option you are doing a lease with the right to purchase directly with a buyer or what we call a tenant buyer. They are both the same type of transaction but the paperwork is pro-buyer for one and pro-seller for the other. And when you talk about buying a home for 100k above and putting down 5-20% I am unclear if you mean YOU putting that down or your tenant buyer paying that much to you down? Either way the goal when you buy is to put nothing or very little down and when you sell to get as much as you can down. With that said though most of the buyers who want to buy on an option will only put down 3-5%. If you get more that is great, but it is pretty rare. Think also about it from their perspective...if they can't get a mortgage they usually have some credit issues that need time to clean up and they likely don't have a lot of cash. I hope this helps a little bit for you.
Ok that makes since! You answered my question perfectly
What about a sandwich lease?
@Scott Harper a Sandwich lease option is when you lease option from a seller and then lease option the same home to a tenant buyer. You are in the middle but there are 2 deals: one with the buyer and one with the seller.
Yea, I believe I’m thinking of a sandwich lease option. The one thing that seems really difficult is finding the seller that will accept it.
What kind of questions would you ask a seller and/or hear from them? In order for you to really take action into a lease option ( Rent-To-Own)?