L/O Help Need Advice! Long - Posted by Gary Duty (Tx)

Posted by JohnBoy on December 02, 2000 at 16:53:40:

I would not just offer any rent credits. You may not need to give any. Let the tenant.buyer ASK for one and if it is something you’re willing to give then go from there. It also gives something for the tenant/buyer to negotiate and feel like they are making a better deal for themselves. Some will, some won’t, so why just freely give it if you don’t have too?

I would keep the lease option agreement down to one year terms. If you needed to you can always grant them another year and depending on what you want and the tenant you can charge another fee for getting another option, raise the rent and increase the selling price again to adjust for any inflation on property value.

Why give up more control than you have too? The less the time frame on the term, the more control you keep.

As far as how much for option consideration, get as much as you can! Don’t set the amount in any advertising or specify an amount when they call. ASK them, “what’s the most you could you come up with?” You never know what someone may have or be willing to put down for consideration. If they offer something low like $500 - $1000, then tell them the least amount you will need is $2500 or what ever works for you. Someone might offer $10k! He who mentions price first, loses!!!

L/O Help Need Advice! Long - Posted by Gary Duty (Tx)

Posted by Gary Duty (Tx) on December 02, 2000 at 16:12:09:

If you had this house how would you lease it with a option to buy it? The house is stucco. Everything in the house is almost new. It does have central heat and air. It doesn’t have a dishwasher. It is located in a small town where everyone seems to want there kids to attend school. I had it lease out for 575.00. I brought the house a year ago for 32,000. I have a balloon in 4 more years on the mortgage loan. It will appraisal for 49,000. I am thinking of leasing the property out with a option to buy in 3 years for 49,000 total purchase price. Take this property as it was yours and show me what you would do with it. With this being my first lease-option I am very uncomfortable. My mortgage payment is 373.00 and taxes and insurance is 70.00 a month, with a balloon in 4 years. How much option consideration do you normally give. I was thinking of 150 a month rent credits? Thanks for your time.