Real Estate Agent · Winder, GA · Member since 2014 · 16 posts · 2 votes
I have a potential rent to own/lease option "buyer" that I am trying to put in a property. My one rental property I have right now is rented. How can I quickly obtain another property to rent to them without having to go through a full purchase, but be able to make a decent income in the end? I might be over thinking the process. Let me know if you have any ideas on how to make this work for both of us.
Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
11y
Find a distressed owner and offer to purchase the property Subject 2 their existing financing. It can be a pretty quick transaction, since their is no underwriting, qualifying or closing. However, make sure you fully understand ALL the federal and state requirements around owner financing and Rent to Own/Lease Option agreements. Dodd-Frank, the SAFE Act and other legislation in the last 10-years as dramatically changed the landscape around those transactions.
Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
11y
There's two ways you can lease option
one do a lease-option assignment and two do a sandwich lease option.
Lease-option assignment is where you find a home seller
In general he has very little equity but a nice property with no work
When you talk to the seller about selling you demonstrate selling with an agent versus lease optioning his house. It can generally be faster and have less costs
Sandwich lease options are when you release from the seller and sublease and sub option and your Objective is to profit on 3
Spreads, the option fee, the rents and the sales price.
Caution ...if the tenant buyer does not pay and you must pay the seller on the Sandwich, if if you are broke, stick to assignments for a while
Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
11y
Find a distressed owner and offer to purchase the property Subject 2 their existing financing. It can be a pretty quick transaction, since their is no underwriting, qualifying or closing. However, make sure you fully understand ALL the federal and state requirements around owner financing and Rent to Own/Lease Option agreements. Dodd-Frank, the SAFE Act and other legislation in the last 10-years as dramatically changed the landscape around those transactions.
Peoria, IL · Member since 2013 · 967 posts · 383 votes
11y
Hi Hattie,
I know you are in TX and I am in IL, I want to rent to own/lease option a property using the current owner's financing. What would be my next step? Get the contract to do it? or...? any guidance appreciated.
Investor · San Antonio, TX · Member since 2014 · 142 posts · 104 votes
11y
Just a quick comment: it's easier to find the tenant than it is to find the property. My guess is that even if you don't have this particular tenant, it would be easy enough to get one. But I would echo Hattie's comments. Alot of changes out there, some states have made some special rules that effect lease/options. I have no idea though about Georgia. Personally, if I were you, I wouldn't be rushing to get a property for this tenant. He's replaceable. I'd be carefully looking for a property that meets my requirements. Rushing to find a place for this tenant is apt to make you too motivated, make a mistake.