Posted by Jim IL on March 03, 2000 at 02:01:23:
John,
I knew that header would get your attention!
Where the heck ya been buddy?
Missed you in Atlanta!
Anyway,
Don’t always tell these newbies to assign there L/O’s, sheesh, there is money to be made a few times over if they keep them.
Then again, this is the guy who has made me money with his advice before, so forget I said anything!
Anyway,
Saw your name for the 1 st time on a while and had to say “hello”.
Happy investing,
Jim IL
Lease Option Question… - Posted by Jerry
Posted by Jerry on March 02, 2000 at 21:30:23:
I am new to this site and like it very much. I really want to get involved with real estate investing and I am researching what direction to go…L/O’s seem to be very popular but is this the place to start if I don’t have a lot of capital? I know I can make some good deals, but if I put myself in the positon of being a landlord…should I have a nest egg? In case of emergency repairs or does insurance cover for that? Any advice on good directions to start will be greatly apreciated…
Re: Lease Option Question… - Posted by JohnBoy
Posted by JohnBoy on March 02, 2000 at 21:40:49:
You should work on building up your cash first before you start holding property. You can do this with L/O’s by assigning your deals to your tenant/buyers the same as assigning a contract on a purchase. Just be sure to get a signed release of liability from the seller when you assign your contract.
When you decide to hold for long term you should keep enough of the “non-refundable option consideration” you get from your tenant/buyers to have in reserves to cover a few months rent and/or cover any repairs required to clean up the place while trying to get another tenant and market the property.
If you cut yourself short by using the funds for other things, financial set backs are likely.