Having a realtor to list for rent-to-own (lease option) in Houston

8 Replies

Hi everyone,

My husband and I are new investors in Houston Texas. I have done a few deals  (mobile homes and single family homes) and we were wondering if anyone knows a real estate agent who is comfortable to list properties for lease option in Houston. We will take care all the paper work, but we would like a realtor to list the property to have more exposure. Any advice is greatly appreciated.

Regards,


Dolly

If you are taking care of everything, then just find someone that will flat fee list the property for you.  Lots of them out there, a craigslist search will help you kick start your search.

Call a flat fee listing service. US HomeListers is a national one that will set you up with a listing on your local MLS. I've been very happy with my flat fee listing results. Be advised that you'll need to offer something to the buyer's agent in your listing. Perhaps a flat fee since you are not selling outright, so it would be hard to assign a commission % amount. You may get lucky and find an unrepresented buyer. IMO you'll get tons of interest if you are offering to lease option and you offer to compensate the buyer's agent.

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@Dolly Richards curious as to how your accomplishing "lease to owns" here in TX and still abiding by all the strict guidelines on executory contracts which include the Dodd-Frank law and Safe Act. 

You guys are very helpful. I am going to try flat rate listing, thank you @Sam Craven  and @K. Marie Poe. As what I know, lease option needs to be practiced very carefully in Texas. We purchased the house with sub2 (can't do sandwich lease option, must have the deed) and we will comply everything on the TX-safe act (still reading), ex. documents, terms, time frame, wording on the agreement per TX-safe act. We also have a mentor who has done it for many years to help us. I will be happy to share our experience afterward for your suggestions and comments. I always want to see more sites that promote lease options to learn from it, thank you @Brian Gibbons  . 

This place is awesome!

Make sure you check your mentor's advice against some local legal opinion.  No mentor has years or experience being compliant with Dodd Frank, since the updated guidelines from the CFPB went into effect January 2014.  And then you have the TX specific laws for lease options. 

There are tons of varying opinions on compliance for the small time investor.  But they are just that. We are all working in the dark somewhat as the guidelines are new and there isn't any case law. Make sure you are working with as much knowledge as possible.  Your mentor shouldn't be your only source.

@Dolly Richards As mentioned here, just use a flat fee service. However, I will say this, in 11 years I've never had an agent bring me a T/B that qualified for our program. The potential T/B's agents bring me have horrid credit and I can't work with them, so you may or may not have much different luck listing on the MLS.

As @k. 

Kristine Marie Poe stated, you'll want to know ahead of time what you are paying the T/B's agent and a flat fee would be best, since you are just getting option consideration and first month's upfront. I offer 1/2 month's payment if an agent does bring me someone, as that is standard for a straight lease.