Lease Option to Lease Option

1 Reply

Hello,

I wanted to know if there is anyone here whho has done a lease option agreement with seller for 6 months and lease option the property to buyer for 3 months? I was running numbers and wanted to know if someone has done this. If so, how successful was it. If not why?

Raymond Hill, Real Estate Agent in MA (#1000268) and RI (#041149)
Originally posted by @Raymond Hill :

Hello,

I wanted to know if there is anyone here whho has done a lease option agreement with seller for 6 months and lease option the property to buyer for 3 months? I was running numbers and wanted to know if someone has done this. If so, how successful was it. If not why?

 Sure, lots of people do those, like myself. I never Lease Option for less than 2 or 3 years and when I lease Option out it is always 1 year less than the Option I have. That way I have some breathing room if my optionee can't get financing to exercise his option.

For instance, I get a 3 Year Lease Option and sell on a 2 Year Lease Option.

I think you will run into trouble with 6 months and 3 months. It isn't really enough time to get "seasoning" to show a prospective lender to get financing to buy out the Option.

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