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.
@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 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?
@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,
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