Posted by nat on July 03, 2002 at 18:49:48:
KC,
i lived in a Hot Market( No.Ca) but your response was something i needed. you got some good point.
Thank
Nat
How to do lease options in hot market??? - Posted by Michelle Nightengale
Posted by Michelle Nightengale on July 03, 2002 at 17:37:15:
Hi!
I’m a newcomer to real estate investing. I haven’t done any deals yet, but I’ve done some research and I’d like to do lease options.
I’ve been doing some research on my local market, and it’s hot! Supply is low and demand is high. Homes are going quickly. I’d like to invest in a single-family home and I’ve looked at everything between $119,000-$200,000. But how do I approach a home owner with a creative, nothing down offer when demand is so high? (And let’s not forget the realtor who needs to be paid!)
I’ve recently cruised the neighborhoods with two different real estate agents. The second one, whom I went with today, was asking questions about what type of financing I’m looking for. I mentioned I wanted to do a lease option deal with a tenant buyer, and possibly with my seller too. She wasn’t impressed and even said she didn’t think a lease option deal with a seller was legal. (I know it is.) She was nice enough, but I didn’t really hit it off and I didn’t like her too well (not well enough to continue with her). She was somewhat snobbish (I don’t look like I have any money) and didn’t think much of creative financing.
I live in south Florida. My town is small and since the city planning commission is (finally!) improving and beautifying the town, it’s becoming VERY attractive and a very desirable place to live. It will be the cutest place to live when all of the improvements are completed.
So how do I do a lease option with a seller when the market is this hot??? I don’t have any cash to put in and since I’m technically unemployed (just starting my own biz – NOT RE), and my credit isn’t great, I have really have no way to get any kind of loan or financing. I need to either use seller financing and/or do lease options.
Can someone please help me figure out how to do this in this kind of market??? I really want to sign something up and get a tenant/buyer into the place by fall (which, here in south Florida is when the “season” starts, all of our snowbirds come down, and our population increases dramatically).
Thanks so much for your help!
Michelle Nightengale
Don’t bother with agents - Posted by Michael A. Bardelli
Posted by Michael A. Bardelli on July 04, 2002 at 18:54:19:
Michelle,
Most real estate agents fall into one category:
SCUMBAGS!!!
Not all agents are in this category though, just most of them. All they know is their state approved contracts and bank loans. If you state that you want to do any kind of creative offer, they are not interested. They become afraid that they won’t get their 7% commission and drive their Lexus and Mercedes Benz. Creative financing is not what 99% of americans do, so they don’t understand. Don’t even think about offering below full retail for any properties they show you either. Your offer will end up in the “round file”. Just my thoughts.
Sincerely,
Michael A. Bardelli
Re: How to do lease options in hot market??? - Posted by Alexander (Fl)
Posted by Alexander (Fl) on July 04, 2002 at 11:01:55:
Michelle,
I am in the Coconut Grove area and I’ll be happy to give you some pointers.
Feel free to call me at my office
Alexander
(305)461-1991
Re: How to do lease options in hot market??? - Posted by KC Questions
Posted by KC Questions on July 03, 2002 at 18:30:37:
You need to stop looking for sellers and find ways to have the sellers looking for you. Then you can pick your own terms to buy the property.
Re: How to do lease options in hot market??? - Posted by TC
Posted by TC on July 03, 2002 at 20:07:11:
I agree w/nat.
-U don’t need snobbish know it all agents.
-start advertising to target the sellers in contacting U
-do the same in getting buyers
-gather all your pieces, then puzzle them 2gether.
good luck!