Lease Option to Flip?

Question

Has anyone ever used a Lease/Option to control a property, with the intent to flip it? How did that look?

My current situation, there are some houses in my neighborhood that I'm certain would need little work (I haven't been in them, but they are circa 2000 and cookie cutter like mine).

There is the potential, assuming a low enough offer is accepted to make $30k+ (hopefully closer to 50k), and if needed to be rented, would cashflow.

The downside that I think I see is that we are going into the winter months, and it is mostly a live-in homeowner type of neighborhood, so there could be a couple months of hold before it gets flipped/rented.

Thanks in advance!

Jim Keller · Answer

Gerrit

Brian in my opinion knows what he is talking about, in just 30 min on the phone he helped me a lot.  I have located and put under contract 2 lease purchases in the last 60 days.  The first we are in the middle of flipping and the second because of the condition and LTV we are wholesaling.  Both of these deals were very easy to work with, the best part is the sellers have been so helpful.  We have virtually no money cost for the purchase, a real win win for everyone.

Gerrit Stukkie · Answer

@Brian Gibbons

Thanks for the insight on that. It seems easier than doing the full flip like I was thinking.

Brian Gibbons · Answer

@Gerrit Stukkie

You want to plan to farm areas to do lease option assignments or lease purchase.

You:

1. Find a seller that needs to sell: I like expired listings.

2. Find a renter that wants a lease to own home (easier than getting a seller)

3. Enter into a lease with option or lease purchase with the seller, then sell your interests.  You are selling your paperwork for a 3% fee or so.

PM me if you want to talk about it.