Lease Option to Lease Option

3 Replies

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?

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.

I agree with @Mike M. We do lease options in Arizona for 3-5 years. We don’t allow our optionees to lease out the property to others though. We look for end buyers for our properties to do lease options with.

Do any of the BP calculators apply to analyzing a lease option property? If not, is there a way to adjust them to do so?

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