Posted by CH on February 17, 2002 at 21:30:55:
California prices have gotten so high that they are well about the FHA limits…
Are tenant/buyers really that easy to find? - Posted by Jay De Graaf
Posted by Jay De Graaf on February 17, 2002 at 08:31:55:
In regard to lease/options: The key after finding a motivated seller who’ll agree to your terms is finding a tenant/buyer. Are they really that abundant?
Curious newbie
Jay
Re: Are tenant/buyers really that easy to find? - Posted by Dee-Texas
Posted by Dee-Texas on February 18, 2002 at 08:15:52:
T/B’ers are a dime a dozen BUT the good ones are hard to find. Out of 20 calls I might have three that I really want to look at. Tons of hang up calls. I found out the hard way. Take your time and SCREEN!
There’s some good ones but you have to sift though all the bad ones with the pat answers. Check everything, the first time you don’t it usually winds up costing you money on a house that you get back and have to do a lot of repair on. But think of it as a very expensive seminar. AND YOU WON"T repeat that mistake again.
To answer your question yes, there are some good ones but you really have to screen to find them. It’s easier to fill a house with T/B’ers than just selling retail.
My opinion,
Great success,
Dee-Texas
Re: Are tenant/buyers really that easy to find? - Posted by Rob FL
Posted by Rob FL on February 17, 2002 at 21:12:25:
Being totally honest, alot of people paint a pretty picture about lease options and how easy it is to find a buyer.
But it isn’t always as easy as people say it is. I’ve had some properties where I get applications out my rear end. And I get some properties where they sit for weeks on end without one decent prospect.
So the answer in my opinion is that most of the time lease options are easy to sell. Sometimes they aren’t. And that’s even with a decent house in a decent neighborhood at a decent price.
Re: Are tenant/buyers really that easy to find? - Posted by wayne-pa
Posted by wayne-pa on February 17, 2002 at 18:17:54:
I had a house listed with an agent, in 3 months she showed the house 3 times. I set up the lease option, put a sign out front, and ran an add, I had at least 30 calls, and 14 people show for the open houses within two weeks.
Hey its easy for people and they understand the renting thing.
Re: Are tenant/buyers really that easy to find? - Posted by Kristine-CA
Posted by Kristine-CA on February 17, 2002 at 11:08:52:
Hello. I’m a newbie, but I can tell you from the response I’ve gotten to ads I’ve placed that there are lots of people who have cash and poor credit. Some people, especially young couples, have no credit but have good jobs or money from family or whatever. Of course it’s still necessary to screen everyone and really select the right t/b.
Are they abundant? I get more calls on my “I buy houses” from people wanting to buy and wanting a l/o or me to carry paper than I get calls from motivated sellers.
I think you’ll get lots of good replies from the experienced l/o people here. Sincerely, Kristine
what differentiates the two… - Posted by David Krulac
Posted by David Krulac on February 18, 2002 at 11:02:17:
what is different between the easy to L/O and not? Thanks,
David Krulac
Re: Are tenant/buyers really that easy to find? - Posted by Bryan in Cali
Posted by Bryan in Cali on February 17, 2002 at 19:40:50:
In my area (California) increasing numbers of people are being shut out of the traditional system since house prices are so high meaning that a 20% down is more than a lot of people can afford even with good credit.
Re: what differentiates the two… - Posted by Rob FL
Posted by Rob FL on February 18, 2002 at 13:35:09:
I haven’t quite figured it out yet, but I think it depends on location and upfront money more than anything. I’ve only done about 10 lease options so I’m by no means an expert. The rougher the neighborhood the tougher it is to find people with money or decent credit. Also the more upfront money you need the tougher it is. I stumbled upon someone once who put down 6K for a downpayment on a 113K house, but that is not the norm. Most buyers seem to have no more than about 2-3K max available.
Re: what differentiates the two… - Posted by Brent_IL
Posted by Brent_IL on February 18, 2002 at 11:22:25:
Not Rob, but I think a major factor is population density. Several hundred thousand potential buyers speeds up the process.
Re: Are tenant/buyers really that easy to find? - Posted by Kristine-CA
Posted by Kristine-CA on February 18, 2002 at 02:11:21:
20%? How many people have 80 or 100K for a downpayment on a SFH? Unless they have profit from another home sale, even 10% is high. And this is if your credit and income are pretty darn good. I just spent the day in the Bakersfield area again and I was amazed at how many “higher end” homes there were over 300K. Bakersfield. A decent enough place to live, but I think the perk for living with the heat and the smog and ag pollution would be an inexpensive home. Sincerely, Kristine
Re: Are tenant/buyers really that easy to find? - Posted by Rob FL
Posted by Rob FL on February 17, 2002 at 21:08:46:
Correct me if I am mistaken, but if you have good credit can’t you simply go FHA or get a 95% LTV conventional loan ? We do it all the time here in Florida.
Re: Are tenant/buyers really that easy to find? - Posted by Kristine-CA
Posted by Kristine-CA on February 18, 2002 at 02:04:56:
With so many homes above 275K, FHA isn’t available. In my area, Santa Barbara, with SFHs starting at 400K, even 5% is 20K down. With people paying rents that correspond to the retail market (1800-3000K for a 2-3 BDR house), people aren’t exactly saving that down payment. Lease options are catching on here. Some RE agents have even figured it out–I’m seeing ads for lease/options or “lease to own” and with low, low downs being offered by agents now.
Sincerely, Kristine.