Lease Option? - Posted by RC

Real Estate Investing
#1

Posted by RC on February 26, 2002 at 18:29:47:

Awesome!

Thats kind of what I figured. I figured if I lived there for a couple of years while I’m getting the credit situation straightened out, he’ll probably be ready to sell after a while.

Now, do you think he’d sign a Lease Option agreement now, or is that something we should wait a year or so when he’s more ready to unload the property before offering that to him?

I sort of figured I wouldnt get a discounted price on this one because the area is so desireable (Rancho Cucamonga, CA), but if I could just get myself into a house, with a Lease Option or an outright purchase in a couple of years, that would be my anchor and launch pad to move along and actually start investing in yet other properties.

#2

Lease Option? - Posted by RC

Posted by RC on February 26, 2002 at 15:50:15:

Here’s a hypo. Actually a possibility for me if things work out.

Me: Bad credit history, currently paying off all old debt, all current debt up to date and current, bad was from about 5-6 years ago. Decent income, can qualify if credit was good without regard to wife’s income. Cannot qualify currently, but will be able to once bad debt is cleared in about 15 months.

Them: Work in same company, own house that I viewed and saw potential in. They may be getting transferred to Atlanta, and havent decided whether to lease or sell the house. They paid $142,000 two years ago from Fannie Mae and say it’s worth $192,000 now (dont know about that). House is in rough condition, needs several repairs and plenty of cleaning, especially the pool.

They have discussed renting to us while they are in Atlanta for about $1300 per month. They are also trying to decide if they want to sell it. The man is in love with his house, but I want to buy it, not rent it.

I mentioned a possible Lease-option with him although I didnt go into detail about exactly what it is. I figure after about two years, he’ll probably want to sell the house, so I would try to structure the lease option to allow me an outright purchase at the beginning of year two, going through year three. By that time, I’ll qualify for a mortgage and will be able to hopefully pick up the house at a substantial discount.

Any thoughts? Suggestions?

#3

This is not me - Posted by RC

Posted by RC on February 26, 2002 at 22:03:01:

Seems to be a lot of duplicate names going around here lately - this time it’s my turn to be the “victim”

PS - I agree with Tiffany - this doesn’t sound like a motivated seller

#4

Red Alert! - Posted by Tiffany

Posted by Tiffany on February 26, 2002 at 18:13:02:

“The man is in love with his house, but I want to buy it…”

He doesn’t sound like a very motivated seller in the slightest, yet. They need time to adjust their attitude to the reality of the situation that their house is not in top of the market condition. They are not under any pressure to sell it at the moment, so you will have little chance to persuade them to discount the price or the terms.

You sound like you are a “Wanter”. You make a better deal if you are a “Don’t Wanter” in negotiations. As a rule, he who cares least, wins.

Perhaps you wil find a better deal for yourself if you find a seller whose motivation to sell is greater than your motivation to buy. A “Subject to” deal or a lease/option deal would work with your credit situation.

#5

Re: This is not me - Posted by Raphael

Posted by Raphael on February 27, 2002 at 11:03:54:

Sorry RC! :wink:

I’ll change to something else.

Yep, I agree. He’s not motivated yet, but then if you lived in Atlanta and had a house that you were renting in California, how long would it take you to become motivated? :wink: I’ll ask him for a lease option deal because he did mention that in a year or two he may want to just sell it to me. If I can get a lease option going into the house, that would benefit me greatly I figure. Besides, if I’m going to have to rent something, it might as well be in a nice neighborhood, for a good price, with low crime, and with a pool. Wouldnt you agree? Either way, I’ll still try to pressure him into a win-win Lease option deal before I move in. I’ve got time, it will be a few months before they leave.

Thanks guys for all your help!!!