Lease Option Experts... Would you touch this market? - Posted by Crystal

Posted by JohnBoy on March 04, 2000 at 22:12:59:

Even though there are programs out there with 5% down and new construction with lease options for 1 year to build on getting a down payment, remember one thing? These programs are for people with good enough incomes as you mentioned and also these people will need good credit to qualify so they can get financed in a year.

No matter what market your in. No matter how good or bad. There will ALWAYS be people out there that have problems and need out! That’s where you make your deals when buying.

Then there will ALWAYS be people that have the income and even the money to put down, BUT, they won’t have the good enough credit to qualify for those other programs because of this. This is where you will make your deals when selling whether it be by selling on a L/O, contract, seller financing, etc.

So to answer your question?

NEVER just sit around on the fence waiting for things to change! ALWAYS get out there and make something happen!

Look for those people that NEED out and are motivated and sell to those that NEED a place of there own that can’t qualify for all those other glorified programs being offered by builders! There will always be someone out there with a chunk of cash to put down with decent income but can’t qualify under normal circumstances. You will be their night in shinning armor!

You go girl!!!

Lease Option Experts… Would you touch this market? - Posted by Crystal

Posted by Crystal on March 04, 2000 at 24:57:37:

I’ve purchased some l\o courses and for Risk Reducing reasons assigning l\o contracts is the area of REI I would like to get started in.

In Canada homes are purchased with less than the recommended option consideration amount- as little as 5% down.

New home builders are offering 1st time homebuyers the opportunity to rent-to-own. Essentially they pay “rent” for one year and the full amount paid is accredited directly to their down payment. (This technique is available to people who have the income to make payments on a $300,000 home but lack the down payment.)

The resale value of the average home in Ontario is $245,135.

It’s a sellers market. The number of homes for sale are at their lowest level in a decade which is driving prices up even higher.

The average monthly rent for a 3 bedroom (top floor only) home is $1200 plus utilities.

The vacancy rates are extremely low.

Should I keep sitting on the fence and ride this out or do I invest time and money into marketing for homeowners that now realize the pitfalls of leverage and desperately need out? How would you approach this market?

Your insight is greatly appreciated,