A little L/O help please - Posted by LeonNC

Real Estate Investing
1

Posted by Anna on March 13, 2000 at 10:33:55:

I am new to REI and I am interested in L/O. You said that your rents are higher than the rental values. How exactly do you arrie at your numbers?
Thanx in advance.

Anna

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A little L/O help please - Posted by LeonNC

Posted by LeonNC on March 08, 2000 at 11:40:19:

I haven’t posted here in a while but I have talked with some of you in the chatroom and believe me I’m always at this site. In case anyone is interested I did get two junker quick flips done in the last few months of the year last year. I’m gearing up to do lease options now that I have a grip on the flips and I could use some help. These questions are minor details but I’m just one of those nit pickin persons. Feel free to be brief and Thank-You to everyone who contributes to this site.

Sandwich Lease Options:

  1. Is anyone here using the Ron Legrand method of downpayment assistance with the tenant buyer? This is where you make the arrangement by a separate check collected from the t/b to save for thier downpayment.

  2. How long does it normally take you to lease a property? Any number is helpful because I’m trying to determine how long I should give myself to make the first payment.

  3. Are you renting these out at market rental value or closer to what the mortgage payment would be PITI?

  4. Last question, today. What do you tell the seller if they ask “well, what happens to your t/b if I evict you?” What does happen in this scenario?

I’m going at the lease options the old fashioned way…COLD CALLS! I just started this week and it seems like it will work. I have talked with maybe 20 people and have a few leads in the pipeline. What better way to learn the ropes. I’ll probably start running my ads this week and I’ve already been sending out post cards. I’m in the trenches with you you’re not alone. Thanks everyone.

LeonNC

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Re: A little L/O help please - Posted by JPiper

Posted by JPiper on March 08, 2000 at 20:53:52:

Hi Leon:

  1. Don?t know Ron Legrands technique. But I have raised the rent to compensate for a lower (lower than I desired) option consideration. I haven?t done this by separate check.
  2. Two weeks is typical for me.
  3. I don?t rent at rental value?.I arrive at a number that I believe the market can bear, which is higher than rent.
  4. If you were not paying he would file a suit for possession. I would assume that he would include your tenant in the suit for possession unless he spoke with them, found out they were paying you and you weren?t paying him.

JPiper