Looking for an experienced Lease To Own/Lease with an Option investor in Indianapolis

8 Replies

I've recently purchased some investment homes that I'd like to experiment with.  Instead of renting the traditional way, I'd like to do a Lease To Own or a Lease with an Option to purchase.  I've had some casual conversation with a Real Estate attorney but have many unanswered questions.  I'm looking to connect with someone locally who is involved with deals structured in this manner or possibly something similar.

Any help is much appreciated.  

I've been doing lease to own for 3 years and have 14 of them around Indy and other areas.

Let me know when you want to chat.

can u guys chat on here too so I can follow along? 

Originally posted by @Derek Gendig :

I've recently purchased some investment homes that I'd like to experiment with.  Instead of renting the traditional way, I'd like to do a Lease To Own or a Lease with an Option to purchase.  I've had some casual conversation with a Real Estate attorney but have many unanswered questions.  I'm looking to connect with someone locally who is involved with deals structured in this manner or possibly something similar.

Any help is much appreciated.  

 Derek

I would take @Shawn Holsapple

out to lunch and pay him for some One on One mentoring coaching re: marketing, negotiation, contracts, real estate attorney, etc.

You should be able to buy on lease option, subject to, land contract, and market for private lenders

Good luck, it's hard to beat Shawn 

Originally posted by @Brian Gibbons :
Originally posted by @Derek Gendig:

I've recently purchased some investment homes that I'd like to experiment with.  Instead of renting the traditional way, I'd like to do a Lease To Own or a Lease with an Option to purchase.  I've had some casual conversation with a Real Estate attorney but have many unanswered questions.  I'm looking to connect with someone locally who is involved with deals structured in this manner or possibly something similar.

Any help is much appreciated.  

 Derek

I would take @Shawn Holsapple

out to lunch and pay him for some One on One mentoring coaching re: marketing, negotiation, contracts, real estate attorney, etc.

You should be able to buy on lease option, subject to, land contract, and market for private lenders

Good luck, it's hard to beat Shawn 

 Thank you for your reply.  I know Shawn and have worked with him recently.  I may send him a message and pick his brain a bit.  Thanks Brian.

Originally posted by @Gautam Venkatesan :

@Shawn Holsapple

 how do you typically decide on lease/option vs land contract or seller financing for your properties?

 I [almost] never offer a land contract or seller financing because, in the event of a default, the seller will have to foreclose in our State vs. with an option, I can simply evict just like a rental.

I have done a few low end contracts recently, however, with 40%-50% down [which usually covers the initial investment].  This is the only way I will do one.

Although I only have experience with "Lease and option to buy" here in Canada, I might can add some general points:

One advantage is that you need less property management, because the tenant has the intention to buy the house later. That means less headache and better the cashflow.

But on the other hand, if the deal falls apart you could end up with a quite frustrated tenant. A fellow investor had his house trashed by his tenant, after their deal fell apart. The repair was more expensive than the tenants down payment. Furthermore, statistically here in Canada more than 50% of "Rent-to-own" deals fall apart. 

Think about the kind of tenant-buyer you are dealing with. There is a reason why they want this kind of deal. Usually it's because they have bad credit or went bankrupt. That means they don't know how to handle money wisely. 

I try to avoid this by "teaching" my tenants and help them keep on track with their expenses. A good communition is key.

So far, I've had good success with my strategy and therefore would recommend it. But be aware that this is different than the usual tenant or buyer.

Originally posted by @Dominik Heins :

But on the other hand, if the deal falls apart you could end up with a quite frustrated tenant. A fellow investor had his house trashed by his tenant, after their deal fell apart. The repair was more expensive than the tenants down payment. Furthermore, statistically here in Canada more than 50% of "Rent-to-own" deals fall apart. 

Think about the kind of tenant-buyer you are dealing with. There is a reason why they want this kind of deal. Usually it's because they have bad credit or went bankrupt. That means they don't know how to handle money wisely. 

 Dominik:

Could you point me towards the source of that statistic: "...in Canada more than 50% of "Rent-to-own" deals fall apart"?

I am curious whether your hypothesis about the quality of the Client for purchase options or instalment purchases can be quantified.  Historically, conventional mortgage arrears and default rates in Canada are very low.   This could be due to more stringent qualification requirements.  Once the published data catches-up it will be interesting to see if we are experiencing an uncharacteristic spike arising from the temporary relaxation of lending practices a decade ago.

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