Would it be possible to find a good wholesale lead and instead of assigning it, write up a lease option agreement to take this house as a rental of your own? Hopefully no money down and for 60-70 cents on he dollar. I'm a newbie so I my not be thinking through this correctly. What do you think?
The first thing to understand that a good lease option assignment lead is one it's in a "a b"neighborhood for a retail buyer to go get an FHA loan
Second thing to understand a wholesaling lead tends to be in a c d" neighborhood for landlords to rent out, not for retail buyers to go get an FHA loan
The best lease option assignment lead is an a or b neighborhood with no work, generally the seller can't so for some reason, usually no equity
If you were new, the best neighborhoods are in good school districts about the median sales price
We were new and had a property under contract for and assigned it for $12K. The buyer was taking too long so we converted the deal to a lease option paid off the bank and rented it out for a $300 a month profit. We sold it to a tenant buyer for made more money on the lease option than we did on the assigment. The neighborhood was definitely a lease option area so we should have never tried to assign it.
Oh, come on Brian, let's get this right, neighborhood is important, teach location, location, location, but it's not the neighborhood that passes an FHA appraisal, it's the subject property! You can certainly have an FHA qualified home in an older area. Gotta keep in mind, Greenville SC. isn't Sherman Oaks, CA.
Yes, if you have a lead it may turn into something, never know, but 70% of value is tough to do in reality, it depends on the market. The market and the circumstances drives the technique to use in any deal. Don't be a one trick pony as Brian calls them.
To do that, learn RE first, understand market dynamics, how transactions develop, flow and close, then apply the appropriate technique to turn a lead into money in your pocket.
Begin by learning RE basics, then how to market RE. Good luck :)
Thank you all. I'll keep you updated on what I find. I only look in good school zones which knocks out at least D/war zones. If the numbers are right I will consider.
In a great neighborhood I have less hassles filling it w renters or selling it FHA or conventional :)
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing