You L/O pretty houses because you can get in lite. If you have to spend money for repairs you don’t use L/O. To much chance of problems with your cash at risk. Getting the deed, in which you control is another game. You buy if there enough equity to justify your capital expenditure. I don’t mean buying into that top 10% either. I’ve crossed out CD for both buy and sell. I also don’t feel the need to L/O either. Too easy to sell them on the Pactrust. I can do it on the low end properties too. It is just more expensive to have a third party facilitate.
I want to reinterate that its not hard to find good deals. It’s just hard getting rid of them permentately.
I’d like to continue this thread someone else posted from down below…
Seller calls me on a 2 family in a rough area. Wants to dump it, right now asking too much but I believe she’s motivated. I plan to find out how motivated she is before I waste any real time but I may be able to create some real equity in this deal. It’s got me thinking …
What’s the word on LO’s/Subject-to’s in bad areas? I figure as long as I can identify properties nearby that are owned by real people who appear to be paying their bills I should be OK. I know LeGrand always preaches L/O’s ONLY on pretty houses, but I’m thinking there’s alot of $$ to be made in these areas because I should get more motivation!
Also, is this the right order of preference? 1) Subject-to(get the deed) 2)L/O 3) Land Contract.
If you’re buying in a bad area, you should focus on getting the deed. Chances are the house will need repair, and there’s a decent chance that the seller may have some issues somewhere down the line as well (why were they living in the bad area to begin with?).
The lease/option and the contract for deed leave you open to problems. Get the deed should be the primary strategy.
I don’t see a problem with doing a L/O in a bad neighborhood as long as the property doesn’t need any work and you can get in light…reallll light.
You will most likely have PLENTY of callers who want to lease/option it from you. So, if you ask me, the sandwich lease option would be suitable.
BTW, I’m in the process of buying a home in a not so nice neighborhood and I already put my rent to own ad in the paper…I’ve gotten over 100 calls…3 of the callers want to buy it out right…hey I even told them I’d give them a discount if they got a mortgage instead of renting to own…wasn’t that nice of me?
I know I thought it was nice lol
