Lease option experts??? - Posted by Ed SWV

Real Estate Investing
1

Posted by Laure on March 06, 2000 at 07:59:04:

I would suggest purchasing Bronchick’s Lease Option course. It’s money well spent. And the ready to use forms he supplies are great !

Good Luck,
Laure :slight_smile:

2

Lease option experts??? - Posted by Ed SWV

Posted by Ed SWV on March 05, 2000 at 17:16:41:

I have seen other posts about getting too much down from a tenant/buyer and how that can work against if they decide not to purchase.

Can anyone shed some light on the pro’s and con’s of getting 15 to 20% down from a tenant/buyer if I purchase it with the intention of selling it to them?

I’ll use my money to purchase but I want to get it back with a lease option.

What kind of problems could this present if the buyer defaults and/or can’t purchase down the road?

Thanks for the help.

Ed SWV

3

here is my .02 - Posted by tang-0-rang

Posted by tang-0-rang on March 06, 2000 at 10:50:24:

the one pro that I can think of is that if your tenent/buyer in the sandwich lease/option gives you option consideration(lets say $2,000) and you are giving them a rent credit(lets say $200 of the $800 rent)and after 12 months they decide to back out of the purchase they have a financial interest of $4,400 invested into the property ($2,000 down as none refundable option consideration and $2,400 in rent credit=$4,400)here comes the good news…that money is NOT refunded to them so YOU keep it.
The con is that now you have to find another potential Tenent/buyer but wait…another pro…another $2-3,000 in option consideration from the new tenant/buyer.
hope this helps
Todd Williamson(CO)