How do I approach neighbors about lease option?

2 Replies

I have two neighbors who have for sale signs in their yards. What kind of offer have you seen to be fruitful?

I know both owners are tired of being landlords. One is vacant, and the other is tired of being a tenant..

Both are 3/2 in a college town. I have all the papers to set it up...

That'll be an uphill battle just based on them being "tired of being landlords." However, since they are landlords, they may have the degree of understanding needed to make it a palatable option to sell their property.

I've been in talks and have successfully brought about lease option offers for unwilling landlords and regular sellers before. So, you might want to consider a sit down meeting with them if they are interested at the prospect. At the sit down, I'd suggest having a nice spreadsheet and proposed contracts to carry about the deal with proof of funds, etc. It's already an uphill battle so you want to make it as easy as possible for them. Naturally, there is a bunch of stuff you'll want to put together before you approach them, but I'd also consider other factors like how old the sellers are. If they are like 70, I probably wouldn't approach them with anything longer than a couple year term before the option becomes exercisable.

Hope this helps,

James

I find that just springing seller financing on someone usually doesn't work.  However, every  question you don't ask, assuming the answer you get will be "no", is the same as getting "no" for an answer.  So ask.  You might be surprised.

On the brighter side, the best target for Lease Option sellers, are REI that are sired of being Landlords, or are selling off their portfolio. These REI are also highly likely to have more than one property available for sale...or LO.

Since LO's take very little money out of pocket, and if you do it right, any money that is out of pocket, is returned with profit in a very short period of time (could be the same day).