How to - Lease Option in Queens N.Y.

4 Replies

Welcome to my forum discussing Sandwich lease options specifically in the Queens N.Y. area. 

I'm fairly new to creative investing and wanted to learn more about using Sandwich lease options. I'm also working towards obtaining my real estate license.  

I'll kick off the first questions here, Do you need to be a licensed real estate agent to do a Sandwich Lease Option?

How do you analyze a property for a potential Lease Option? 

When do you do a title search ? 

What are the potential pass-through liens? 

How to I draw up a Sandwich lease option contract, addendum's and such and stay within state regulations (Queens Specific)?

If seller is going through Pre-foreclosure can you still do a sandwich lease option?

Who can pre-qualify (with soft credit pull) Buyer/tenant to make sure he/she can get qualified for conventional financing before lease end? 

I look forward to the replies for these questions and more to come. 

Thank you in advance for your input and look forward to possible partnership.

Victor  

Originally posted by @Victor Santiago :

Welcome to my forum discussing Sandwich lease options specifically in the Queens N.Y. area. 

I'm fairly new to creative investing and wanted to learn more about using Sandwich lease options. I'm also working towards obtaining my real estate license.  

I'll kick off the first questions here, Do you need to be a licensed real estate agent to do a Sandwich Lease Option?

How do you analyze a property for a potential Lease Option? 

When do you do a title search ? 

What are the potential pass-through liens? 

How to I draw up a Sandwich lease option contract, addendum's and such and stay within state regulations (Queens Specific)?

If seller is going through Pre-foreclosure can you still do a sandwich lease option?

Who can pre-qualify (with soft credit pull) Buyer/tenant to make sure he/she can get qualified for conventional financing before lease end? 

I look forward to the replies for these questions and more to come. 

Thank you in advance for your input and look forward to possible partnership.

Victor  

Hello Victor,

Welcome to the BP forum! This is a great place to connect with folks in your target areas and abroad.

While I do not have answers to all your questions I can tell you that lease options are not popular in Queens. Mainly because most owners/landlords would prefer to cash out completely and walk away from the property when it is time to sell. I have yet to meet a homeowner that is open to creative financing in Queens. Of course, every seller and every situation is unique so I WON'T say its impossible... just not common.

That being said, the title search is conducted by the attorney when the contract is being drawn up. They sometimes run a preliminary title search beforehand and you can always hire a title company to do a search for $75-125.

A good RE Attorney can answer your questions regarding the lease itself. 

A lender can qualify potential buyers for the property with a soft or hard credit inquiry.

I hope this was somewhat helpful... best of luck to you moving forward!

Abel

Thank you Abel Curiel for your input and getting this discussion kicked off. 

I would think that because of higher tax rates, home prices and stricter lending rules that creative financing might be an easier way to get potential buyers in the door and at least gain interest in it from seller side. 

But i see your point most if not all want to cash out asap lol. Plus it would be hard to lease out to purchase if they are living in the home which most are. 

What strategy would you recommend if your just starting real estate and want to get in the game but cant put down a crazy amount of money for down payment? 

Thanks again

Victor 

Thanks Michael Carbonare for your input, I did read an article and thought it was for rent stabilized housing/section 8 nyc housing authority or co-ops/condo only not single or multifamily homes, i was assuming lease option would be different since it is structured differently than a standard rental agreement.   

This is the article -

https://therealdeal.com/2019/06/18/analysis-heres-what-the-new-rent-law-will-do-to-the-average-stabilized-apartment/