What type of properties are the best for lease option?

6 Replies

I am highly interested in making money using lease option but I have trouble figuring out what type of the properties are best for doing a lease option or what type of motivated seller are the best to focus on when looking for these type of deals??

Please share your ideas and stories about your deals. 

Thank you

@Mahan Shahverdi The best properties are those in the highest demand because they're the easiest to move. In most markets that would be single family homes ranging from +/- 25% of the median price. Good school districts. Move in condition.

Sellers who go for lease options typically have little or no equity, or are juggling 2 mortgages because they had to move and haven't been able to sell the old house.

Hi @Mahan Shahverdi ,

What we focus on is single family homes in areas where properties are not selling (that's pretty much anywhere!).  If a seller has already tried to sell with a Realtor they are more receptive to a creative approach (lease purchase).

Hope that helps,

Chris Pre

@Chris Prefontaine Thank you for your help. If the seller accept to do that. How do I turn that to money for myself? 

How does it work? 

Thank you

@Doug Pretorius After I find these seller what would be best approach to turn to a deal or income property for myself? Do I have to buy it in the future ? 

Thank you for your reply. 

@Mahan Shahverdi If you can take over their payments and get a discounted price then you can keep the property and sublet it for a profit. If you can't get a good price then you can still assign the lease option. I typically assign options for 3% of the option price.

That's some good advice @Doug Pretorius .  We typically tell our buyers that the down payment is 3%-10% of the price and the higher they get that, the better their chances are of being accepted.  Then they truly will do the best that they can.

@Mahan Shahverdi If you private message me I can give you some things to look at that will speed up your learning curve on this whole thing.

Hope that helps,

Chris Pre

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