Posted by Phil on July 12, 2005 at 14:07:51:
Hi. Well L/o’s are easy for the investor’s standpoint. If you can get a seller to L/O his prop. for very little option consideration. For the T/B they will get a loan to buy the place from you, or pay cash. Its easy for them because they don’t have to qualify for a loan (if they need one) until they decide to excerise their option. Reguardless of what the T/B’s tell you now, a lot of them do not end taking the option. So you keep the 7800.00 they paid and would made a profit on the monthly spread. Get an L/O from the seller for longer than your T/B’s, so if they don’y buy, you find another T/B and collect another option fee.