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Lease to Option - Posted by Alex
Posted by Alex on July 05, 2005 at 01:16:08:
I have a property in California, put it on the market about a months ago, it seems to be well priced at 750K, however, it’s in the area where most of the homes are smaller, less options, smaller yards, and sell for 500-675K.
So, now I’m trying to put it on a lease to own contract. What are the best ways to get qualified L2P tenants? Especially in the higher price range of the market?
Re: Lease to Option - Posted by Phil
Posted by Phil on July 05, 2005 at 13:26:10:
You are right on the 2% mark for the option payment, being the house is 750K. I have found at least in the Northeast, people don’t want to commit more than 10K for an option payment. Maybe because 65 % of my T/B’s do not exercise their option to buy. You may have to come down to 1.35 % or you could just take the profit now and sell out right. I find higher end homes can be a pain to move. I think its because less people can afford these price ranges.
Re: Lease to Option - Posted by Jonathan Rexford
Posted by Jonathan Rexford on July 05, 2005 at 07:14:01:
Income, Debt Ratio’s, Credit and most importantly CASH.
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Re: Lease to Option - Posted by Alex
Posted by Alex on July 05, 2005 at 09:49:29:
Jonathan, thanks for the reply. My Q was not so much about the quality control of the tenants, but rather about best marketing techniques that work for L2P tenants. I put several ads in the paper and on Craigs List, but the majority of leads I get are those who have no clue as to what L2P is. I was spending too much time explaining the basics and when I get to the Option deposit requirements ($15,000) they just hang up. So then I started running the ads that start from “$15,000 gets you in!”, which pretty much stopped the flow of any phone calls all together. Is there a better way then running ads (expensive, I might add)? Thanks again.
Re: Lease to Option - Posted by John (Rome)
Posted by John (Rome) on July 05, 2005 at 07:40:29:
(OT)
hi there JR…good to see you again…catch you in the chat room soon…I hope.
John
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Re: Lease to Option - Posted by Jonathan Rexford
Posted by Jonathan Rexford on July 05, 2005 at 14:10:40:
Well I am on the other side of the country in Florida. whyK hit the nail on the head about some headline ads.
Now how bad do you want that 15K…can you get creative with the down payment? It sure beats making payments on an empty home.
Re: Lease to Option - Posted by whyK-CA
Posted by whyK-CA on July 05, 2005 at 11:59:16:
Maybe you got a go after folks having difficult time qualifying by saying “No Qualifying”. I wonder if you are in “hot” part or “not so hot” part of California.