Posted by Stewart Preston on July 02, 2003 at 22:43:58:
Hi David. Either way L\O or subject to, if the owner had problems, doesn’t that cause problems for you with your T/B? If you collected money up front, I would think you would have to give it back, plus maybe even the credit you might have allowed.
Does anybody buy on a L/O anymore? - Posted by Mike
Posted by Mike on July 02, 2003 at 10:26:50:
Hi.
I’ve seen so much recently on how to buy subject-to. I’m just wondering if the L/O fad has died down or if it’s still a recommended way to get into a deal.
Thanks.
Re: Does anybody buy on a L/O anymore? - Posted by B.L.Renfrow
Posted by B.L.Renfrow on July 02, 2003 at 15:08:32:
Subject-to (or cash) would be preferred due to the greater control it gives you. If you lease-option from the seller, you incur greater risks something will go wrong that will interfere with your deal. If a deal were good enough and L/O was the only way I could get it, certainly I would consider it, with the appropriate protection in place (title held in a trust, deed already signed and held in escrow, etc). But as far as a routine method to acquire property, not any more, because many of us who’ve done L/Os have been burned precisely due to the lack of control and have realized there are better ways. But in the right circumstances, yes, I would still consider it.
Brian (NY)
Re: Does anybody buy on a L/O anymore? - Posted by Joe
Posted by Joe on July 02, 2003 at 11:04:45:
Yes, but our goal is cash flow. If there is appreciation, we will exercise and buy. If not, we’ll just let it go back to the seller. We are upfront with the seller and do not make any guarantees we will be buying the property.
Re: Does anybody buy on a L/O anymore? - Posted by gerald(tx)
Posted by gerald(tx) on July 02, 2003 at 10:49:33:
Let’s make sure we differentiate between buying and selling when conveying ownership.
Buying by Lease Option doesn’t give you the control over the property that a Sub2 deal does, simply because you have the deed in the latter case.
However, selling by L/O is a quite viable option as it gives you considerable flexibility and avoids certain hassles in Contract for Deed sales.
Buying Sub2 and selling L/O is not a bad route to go. But it boils down to what you are familiar and comfortable with, as well as your state regulations.
Re: Does anybody buy on a L/O anymore? - Posted by david
Posted by david on July 02, 2003 at 17:08:10:
one caveat on this, If you do all the work to protect yourself and something goes south with the owner…well. The owner gets his property back if you set it up right that way and you made some profit in the interim. What did you have going in? Nada.
peese
David
Ps It aint always about how much you can make. Its about DID you make…