Getting my feet wet w/ this one worth it? (long) - Posted by Greg

Posted by Reif on May 13, 1999 at 11:49:38:

We need just a couple of more pieces of info . . .

What are fair market rents for the house, i.e., what could you turn around and rent it for to your tenant buyer?

Second, you need to be sure there is no up front option money required (I’d ask the tenants that are moving out, not the seller).

After you know these things (and you’ve confirmed the real value is $65,000) then we can help you with your numbers.

The big thing is what are the market rents.


Getting my feet wet w/ L.O…is this one worth it? (long) - Posted by Greg

Posted by Greg on May 13, 1999 at 24:04:18:

Hey I really like all the good stuff you can find here at this site! It keeps me motivated. Anyway, since finding this site a few months ago, I have done 2 Lonnie deals. I now want to try my hand at something else like Lease Options.

I made some calls this week and found an out of state owner who has lease optioned a small 4 bedroom 1 1/2 bath for the past year and the tenants are now backing out of the lease option due to a divorce. The “deal” he had with them was Rent of $650/month with $100 of that going as rent credit on a 3 year lease. Purchase price was $72000. The rent credit seems skinny to me. I also think the purchase price is too high, the place is probably worth closer to $65000. The county has it assessed at $58000 although they tend to be a bit low. The owner tells me he will work the same deal with me that he had with the former tenants. I have confirmed with them that that was the deal they had with him. They thought it wasn’t too bad all things considered. I’m new to lease optio

Re: Getting my feet wet w/ L.O…is this one worth it? (long) - Posted by Brad Crouch

Posted by Brad Crouch on May 15, 1999 at 19:31:12:


You might think about the possibility of having the current tenant buyer simply assigning you their L/O deal. You could pay them (maybe even less than) half of their initial “non-refundable” initial option consideration for the assignment, and perhaps take advantage of the rent credits they have already built up.

Was the issue of “renewals” mentioned in the original documentation? What about having the right to “sub-lease”? Maybe you could have a sweeter deal than you thought. Check out the original documents to see if this is feasible.

Good luck,