Lease option or owner finance

2 Replies

Question. I’m in Abilene,San Angelo tx. Market. I have just started my marketing for wholesaling after many years of on off courses. I would also like any feedback to which do you think is better for creative financing. Lease option or owner finance like the teacher Mitch Stephen does? Thanks.

I would stay away from lease options unless you get a very good local real estate attorney to walk you through it.  The Texas Property Code changed a few years ago to make it a deceptive trade practice to lease/option property that isn't owned free and clear and to require a laundry list of disclosures that have to be given (some of them annually).  I'm sure people still do lease options in Texas, and there's a lot of outdated info out there saying its ok,  but to me the benefit isn't worth the risk or damages if you get sued for it. 

Originally posted by @Kelly Wright Kelly :

I would stay away from lease options unless you get a very good local real estate attorney to walk you through it.  The Texas Property Code changed a few years ago to make it a deceptive trade practice to lease/option property that isn't owned free and clear and to require a laundry list of disclosures that have to be given (some of them annually).  I'm sure people still do lease options in Texas, and there's a lot of outdated info out there saying its ok,  but to me the benefit isn't worth the risk or damages if you get sued for it. 

 Great advice, if I handle something like this its minimum $4-7k. Better have high margins or prepared to pay for the experience.