Posted by blogger on August 06, 2008 at 11:03:19:
To get any really meaningful info here I think you’ll have to be state-specific re where you want to do business.
How are lease purchase agreements today? NJ - Posted by Scott
Posted by Scott on August 06, 2008 at 11:00:46:
I am looking for some feedback from anyone who is using lease purchase agreements as part of their investing strategy in today’s market. My worry is that they are not as easy to work because of the market corrections with the prices of real estate, especially in New Jersey where I live.
Any advice would help, especially in how to find tenent/buyers (I market to apartment house tenents).
Scott
Re: How are lease purchase agreements today? NJ - Posted by eflo10
Posted by eflo10 on August 06, 2008 at 17:11:58:
Works great if you buy the houses right, make the right renovations, and try not to squeeze every last penny out of your tenant/buyer.
I just rented my 3rd L/O last month; I must of had 100 inquiries. With the mortgage crisis, folks are really having a hard time. I am in the process of having my first L/O financed, so we’ll see how that goes. With option payment and rent credits, they should close with almost no money out of pocket.
I find tenant buyers mostly from yard signs. I advertise in the local newspapers and on craigslist, but my best candidates (ie most upfront option money) from drivebys. They call a toll free voicemailbox that describes the home and the program in about 30 seconds, they leave a message with their contact info and how much money they have to work with (helps to qualify prospects before I return their calls). I now have a decent sized buyers list so I can look in specific areas and price ranges, so I am hoping my turn around time improves.
It really is a win-win situation for both the tenants and myself. When I tell them they got the house, they sound like they just won the lottery!