Lease Options in a Lava-like Market - Posted by Doug Pretorius
Posted by Doug Pretorius on March 13, 2000 at 19:40:34:
I’m interested in trying out some lease/option deals, but I notice that most of the success stories and how-to’s dealing with L/O’s talk about getting the properties well below market and flipping to renters for profit. I’m hoping some of you can give me ideas for using L/O’s in a very hot market, let me give you some background:
Currently in my area there is the biggest seller market in history going on. SFH are selling for an average of $10,000 more than the asking price. I called about one small duplex that had sold for $23,000 more than the list price, this was nearly a 25% premium! In the last year property values have gone up about 10% and if this keeps up, this year they will probably go up 10-15%.
The rental market is also booming. With vacancies of probably less than 1%, especially for SFH and condo/townhouses. Last year 3/2 SFH were renting for $825-$875+util now they are around $1,000+util.
I understand the speed-of-close benefit for L/O’s, and in this hot market I’m sure pointing out that they would be saving $10,000+ commission wouldn’t hurt either.