Posted by Steve Heller on May 01, 1999 at 13:35:11:
Bud thanks for your e-mail,
Do sellers often ask the question of ‘what are the chances that a tenant/buyer will not excercise their option’? Or do they assume that most if not all will excercise. A lady friend is thinking of doing some tele-marketing and she tries to think of every question a seller may ask.
Thanks for your reponse,
Steve Heller
Tenant/Buyer follow through on Lease/Purchase contract? - Posted by Steve Heller
Posted by Steve Heller on April 29, 1999 at 18:59:54:
Hi everyone,
Can anyone who has experience with Lease/Options comment on percentage of deals that fall through? In other words, how often do tenant/buyers ‘not’ excercise their option to purchase after putting up option consideration and paying a higher than market rent?
Thanks,
Steve Heller
Re: Tenant/Buyer follow through on Lease/Purchase contract? - Posted by Bud Branstetter
Posted by Bud Branstetter on April 30, 1999 at 11:39:50:
The question would have to be broken down into catagories. Below 60K, 60-80K 100-150K 150K and above. Also how much down-less than 3%, 3-5%, more than 5%. actual cash- less than 3K, 3-6K, 6-10K, more than 10K.
Whether you run the tenant by the mortage broker and know what it will take to get him qualified or whether you just put them in there because he has some cash and promises to pay each month.
So the rule become the more money you get and the more qualified they are the more likely they are to carry through. But then if I have a bunch of their money and the back end by that consideration is small, what do I care if I have to collect more from the next tenant.