Lease options and general financing question - Posted by Chris in TX

Posted by Eric C on July 01, 2003 at 02:07:31:

Hi -

I agree with your point about checking the motivation of all parties.

It’s also true that lease-options can be used to close million dollar deals; I’ve done more than a couple of them myself.

In fact, similar deals are completed everyday in the commercial, agricultural, and business markets where six figure (and more) transactions are the norm.

Options remain one of the most useful tools to solve complex problems and capture profits (and opportunities).

Take care,

Eric C

Lease options and general financing question - Posted by Chris in TX

Posted by Chris in TX on June 28, 2003 at 23:14:55:

Hi, I have a couple quick questions that have been going through my mind lately.

First does it get more difficult to lease option a home the higher the price is?

Let’s say there is a home that is 200K or maybe a little more making the monthly payments somewhat high. In general, is it more difficult to find buyers willing to do a lease option? What about 400k or even 500k? I’m a newbie, and my first reaction is that the people who could afford a medium 6 figure house would just use the conventional means of financing.

My second question relates to the first.

The higher the price of a house, does it get more difficult to negotiate no money down? My instinct says yes because there is more money at stake, but maybe I am not thinking as creatively as I could.

Any info on these two ideas is greatly appreciated. Thank you so much everybody!
Chris

Re: Lease options and general financing question - Posted by shane AMP

Posted by shane AMP on June 29, 2003 at 21:51:05:

Generally speaking L/O are done on a moderate array of homes.In short, if you have a T/B interested in a very high priced home, you should probably look into. why he can’t get financed for it and what his motivation is.This is not to say that people don’t do lease options for many different reasons aside of bad credit,no down payment and so on. You should be more interested in whether the “high priced house” has reasonable terms and whether or not you can find a person to put into it. Let’s face it a L/O can be done on a $1,000,000.00 home if all is well that ends well.