Jim is right about what Legrand says, but remember that everything is negotiable. I have read about every L/O experts stuff that I could find and it can be approached several ways.
Some now some later
None now and all later
3)None now and None later (if you have the seller add you as an exception to the listing agreement. This would work better on high priced homes that are slow to sell. You would have an agreement to L/O with 120 days to close or so.)
Some now and none later.
It’s really up to you what happens. It depends on your negotiation SKILLS. Whether you pay or the seller pays is also up for negotiation.
Best of luck to you and the rest of my new family!
After attending the convention in Dallas, I am interested in trying my first lease option. Can it be done when the house is listed through a realtor? This must tick the realtor off, or does he get his commission when the house finally sells down the road sometime? I’ve ordered the package from Ron LeGrand but it hasn’t come yet and I am trying to figure out all the details.
I’m also using a GREAT Realtor to find properties for me. My strategy is a bit different, though.
I’m seeking out investor money so I can offer “all cash” deals to the sellers for deep discounts. Then I can resell (or flip), L/O, or keep the property myself. The deal will determine the outcome. I’m currently offering two basic note packages to the investors: One for those who want in and out quickly. One for those who are willing to ride out a few years. This offers me a lot of flexibility. If the L/O isn’t exercised, I can refinance after a year and pay off my investor, leaving me time to decide if I want to keep it, sell it or try another L/O. Either way, having the opportunity to buy low will give me a comfortable return on the back end.
Posted by Jim Beavens on March 10, 1999 at 13:50:17:
I remember LeGrand saying in his presentation that you want to try and keep Realtors out of your pretty house deals. I get the impression that he really prefers to work either with FSBOs, or people who don’t yet have their house listed (out-of-state owners, tired landlords, etc).
I ordered the course at the convention and am anxiously awaiting it as well. I know that I am going to target FSBOs very hard and try to find those that are willing to give me the deed if I take over their payments (the infamouse “subject to” scenario), and use lease-options as a second option if they don’t go for that (lease-options won’t always work in my area because in the example he gave, that $129,000 house would probably rent for only $800-$900).
This question has been posed on here before, and the most popular solution has been to give the realtor half their commission now and the other half when the option is exercised. This goes against LeGrand’s principle of not putting any of your money into the deal, but as he says, if the potential reward overcomes the potential risk by a large enough amount, then anything’s possible.