Lease Options…
Hi guys,
I’m in CA, and you don’t need to be licensed to do Lease Options, IF you are acting as a tenant/buyer or landlord/seller.
You do need to be licensed if you’re doing it for a third party.
Kristine’s post was right on the money - it’s exactly like that… I even find attorneys many times say that something is illegal because they don’t know for sure or their ego doesn’t allow them to say “I don’t know, let me research it”…
Best,
M
Lease Options on Overleveraged houses
Hi Boricua,
Setting up “sandwich LO” with overleveraged houses would not make much sense, so in that case you can do the “assignment LO”.
I do “Sandwich LO’s” on houses that have low mo. payment and I can get for 90% (in good areas even up to 100%) of their value.
For houses that are up to 10-15% leveraged, you can do the “assignment LO” if you can get 7-10y term from the seller. That way your buyer, that is the new tenant/buyer who you will assign the LO to, will have plenty of time for equity to catch up. And in that case, you want to be out of the deal.
good luck,
marko
Marko,
Thank you for the response, that makes sense. I was not thinking about an “assignment” of the Lease option, but that is very good.
Thanks again,
boricua
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