The Bible Tells me Don't Brag About Tomorrow

The Bible Tells me Don't Brag About Tomorrow

Rental Property Investor · Lubbock, TX · Member since 2015 · 455 posts · 182 votes

...but Lord willing, good things are coming.

I got my first property under contract on a lease option today!

Got advice not to do a lease option, and did a whole lot of research on the topic before deciding it was the best avenue for this deal. Call me young and naïve, and you'd be 100% right 50% of the time. Lol, really though, I'm meeting with a lawyer on Monday, and the worst that can happen right now is I can back out of the contract (my legal right during first 14 days)...but I'd only use that as a last resort.

The seller was very happy to finally be getting something positive out of their property (cash flow and potential buyers), and I've already found buyers to assign the contract to, should they pass my tenant screening process!

I can't call this success yet until I pull out a profit from it, but things are looking good in the hood!

WRECK EM.

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  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    10y

    Sorry you have the cart before the horse Austin, see your lawyer before talking to sellers 

    And talk to @John Jackson

    Know the pitfalls in Tx

    They are legal but penalties are brutal

  • Rental Property Investor · Lubbock, TX · Member since 2015 · 455 posts · 182 votes
    10y

    @Brian Gibbons I agree with you, and I admit to being overly optimistic sometimes. I also don't want to stifle every action I take by performing a month of due diligence before making an offer. I felt the risk-reward was in my favor here, especially after stating in the contract that I can cancel the agreement for any reason during the first 14 days (which is also a law.)

    I've read the information on

    http://www.lonestarlandlaw.com/Lease-Options.html

    But elsewhere, I read that some of these things aren't required. Regardless, I included every single thing from that link in my contract, and if the seller doesn't comply, the contract is void.

     John directed me to his lawyer, who said he doesn't deal with lease options anymore haha.

    I'm meeting with some other people in town, and if they don't have all of the facts necessary, then I've got another guy in Austin who I will call.

  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    10y

    @Austin Hughes

    Too much RAH RAH and not enough prudent responsible thought.

    Buy on sub2, get the deed, give a note, rent it out.

    Buy with private lender money - IRA money, sell on a wrap, use a RMLO.

    Safer. Better. For the Buyer, the Seller, and You the REI.

  • Rental Property Investor · Lubbock, TX · Member since 2015 · 455 posts · 182 votes
    10y

    @Brian Gibbons

    Thanks for the input!

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