I just sent my first LOI to a seller who can't sell her house. She is open to a lease option but asked how much she could get as a down payment. I'm thinking NOTHING but instead I told her we could discuss that down the road. My question: is it typical to give the seller a down payment in a lease option?
Yes, though its not really a down payment. Its the money you pay for the option. That money does typically convert to the down payment if you choose to exercise the option and buy. If you don't, the seller keeps that money.
Jon Holdman, Flying Phoenix LLC
how you talk to motivated sellers is everything in lease option assignments
I show the seller if they sold it with an agent they would get x, rented out they would risk y, sold on rent to own they would get ABC
Brian Gibbons thanks, I love how you present 3 scenarios; I've watched several of your vids where you demonstrate this technique.
I failed to mention that I'm ultimately going to assign the option so as long as the fee has room for me, the leftovers go to seller right?
I never give the seller anything but first and last months rent. :)
how do you talk to seller & "mention" you wont be living in it & intend to sub lease it. If you even discuss assigning it, are you/could it be construed that your acting as an agent? I may even lease option my own house...
What do you want to do, Lo your house or loa a house u don't own?
right now i will have the choice if i want to LO the house i own (title & deed of trust to bank). In future, may attempt to get 'some' house under LO contract & sub lease (assign, wrap, etc, tbd; really have to find a local attorney)
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!