Any Experience/Recommendations on Purcasing L/O's? - Posted by Paul S

Posted by Michael Morrongiello on April 17, 2003 at 18:15:08:

Lease option contracts in and by themeselves are not considered to be a true “instrument of indebteness” as a landlord / Tenancy relationship exists between the parties rather than a debtor / creditor arrangement.

However there are a VERY few private investor types, etc. that will consider purchasing for cash to be paid in advance the yet to be collected monthly cash flow generated by rents on a lease option.

As stated, the folks that do this require guarantees that they will collect the rents, possible recourse to the landlord, etc. in order to induce them to do the deal and put up their hard earned cash today for the promise of collecting the future rental income.

To your success,
Michael Morrongiello

Any Experience/Recommendations on Purcasing L/O’s? - Posted by Paul S

Posted by Paul S on April 17, 2003 at 08:43:41:

I’m just wondering if anyone here buys L/O contracts. I sold one once because I was in WAY over my head as a newbie about three years ago. Now I see I should have kept it, and it has occured to me that it was a PAIN to go and do what I call “Training the Seller”. I’d much rather buy an existing L/O. I’m interested in learning how to find them and if there are any ‘rules’ about buying and selling L/O’s specifically. Of course the L/O’s for sale are going to either be on vacant units or have non-performing tenants or tenant-buyers. I’m experienced enough now to fix those situations (if they are fixable). Anybody doing this, or is there a good reason why I’ve never heard of it?

Paul S