Greetings, BP Faithful
My first BP question... *gulp*
Are these realistic options in higher priced areas such as LA county or Austin, TX? They sound great and seem to have the potential to benefit all parties involved, but everything I have read about or heard on the podcast pertains to lower-end properties (20k-75k). If I approach a seller in the Los Angeles area with one of these types of deals are they going to take me seriously or just laugh since we are most likely talking about something in the 400k-500k range? I am trying to get creative in getting my primary residence in LA while using my cash and equity from another property to purchase buy and holds in more affordable markets. Thanks in advance and looking forward to everyone's thoughts!
Hey @Zack Parker
I can tell you that anecdotally, these are rare in LA County. I don't personally know of any that have been done. It's much harder to get these types of deals in a market with such low inventory and so many eager buyers read to pounce.
I've seen a several owner finance deals, but mostly on land. You may get some traction trying to go that route, but I've also found the seller's terms are pretty harsh (30%+ down, 3%+ > market rates) - not every time, but I've seen it several times.
Here's a good guide to rent/lease to own in CA: http://www.dca.ca.gov/publications/legal_guides/s-10.shtml
@Zack Parker it'll work just fine. But instead of searching for desperate sellers, consider appealing to their greed. Show them how you can turn their property into a cash cow investment for them. The nice thing about high priced markets is that there's a lot of money to go around. If you focus on cooperative deals like lease option assignments, you can help sellers make even more money, while getting a slice (albeit a smaller one) of a bigger pie.
@Joshua McGinnis Thanks for the info, J. I think it's gonna be tricky but hopefully I can figure something out. Looking forward to grabbing drinks soon!
@Doug Pretorius Awesome. I didn't even think of approaching it that way. I was looking for even MORE distressed situations, but I think this is a great way to attack a high priced market. Especially in LA where you can find people in good situations that may not have the time or energy to get the most out of a property.
Thanks for the feedback, Gentlemen!
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