Lease Options - Posted by enrico jenko

Posted by enrico jenko on April 20, 2005 at 12:50:23:

In your experience and market, I am from NYC, how many properties do usually flip yearly, and how much time do you devote to finding each, just curious,learning and exploring my options in this; so I can set a workable plan

Lease Options - Posted by enrico jenko

Posted by enrico jenko on April 20, 2005 at 09:50:41:

Good Day, I am glad I have found this site. For the last 90 days I have been reading lots of material on your site and various books. I am determined. I am in the Telecom industry and had bought a home for my family 3 years ago. I went into a lay off for a year and change, declared bankruptcy, found a new job and have been employed for almost a year now. Because of the bankruptcy I can not get traditional financing at this time. How viable do you guys think it is for me to gain control of a property through a lease w/ option (I’ve seen a couple advertised as so) and then rent out the property, while my buddies and I somehow find funding for the purchase ? any feedback would be great.

Re: Lease Options - Posted by enrico jenko

Posted by enrico jenko on April 20, 2005 at 19:52:14:

Sorry for the double post but I wanted more feedback on this regarding the methods `i am thinking of using: Good Day, I am glad I have found this site. For the last 90 days I have been reading lots of material on your site and various books. I am determined. I am in the Telecom industry and had bought a home for my family 3 years ago. I went into a lay off for a year and change, declared bankruptcy, found a new job and have been employed for almost a year now. Because of the bankruptcy I can not get traditional financing at this time. How viable do you guys think it is for me to gain control of a property through a lease w/ option (I’ve seen a couple advertised as so) and then rent out the property, while my buddies and I somehow find funding for the purchase ? any feedback would be great. For instance a 3bd 2 bath w/ finished basement, going for 199,000 about is being offered rent to own 1500 mo. 3000 dn, I would put a family in the main apt. and rent out the basement also. This would give about 300mo positive cash flow (in a perfect world) After 2yr period I exercise the option or find a buyer assuming a 5% rate on property. Am I playing this much too thin, or could it be workable ?

Re: Lease Options - Posted by Scott

Posted by Scott on April 20, 2005 at 10:18:30:

I would do a lot of research first. From the sounds of some of the posts recently on this site, Lease/Options are under fire.

I personally wouldn’t touch them anymore. You never know what can go wrong!

Re: Lease Options - Posted by whyK-CA

Posted by whyK-CA on April 20, 2005 at 20:11:58:

enrico, The recent talk of L/O is about one new bill introduced in Texas and Bill Bronchick wants to kill it. That’s all.

PS. I don’t know about basement.

Re: Lease Options - Posted by enrico jenko

Posted by enrico jenko on April 20, 2005 at 10:42:09:

As i read posts i must agree with you that the purchase option is under fire, so in your opinion does that leave a person like me in bankruptcy w/ a little down payment money SOL in real estate investing. One of the major problems is I own a 2 bed 1 bath, that i paid 209k for, with 3% down 4.5 ARM. Being young in a rush I surely overpaid, and now I want to somehow get a hold on things and invest wisely. I am constantly trying to look and learn, but it is turmoil when you are barely making ends meet and really don’t see a viable way to get financially independent. I know others may have been in this situation before, and ideas, plans, success stories would so, so be appreciated.

Re: Lease Options - Posted by WAREIA

Posted by WAREIA on April 20, 2005 at 10:59:44:

I prefer Legally Flipping Properies myself. It’s quick, it’s clean and I don’t have to use any of my own money or credit. I just cash the checks!

I use a Simple Land Trust, then there is no need for Options, Assignments etc.

Re: Lease Options - Posted by enrico jenko

Posted by enrico jenko on April 20, 2005 at 11:22:37:

The thing that scares me with a flip mind set, it looks as if alot depends on how the market is, and alot of networking amongst people, I may be aking too much or looking at things incorrectly, but I see my mentality more as a buy-hold “type” and occassional flip when the opportunity is presented. In my mind what I would like is to slowly gain control, or own a several properties yearly. but like I said I am dealing with my own bankruptcy so financing is hard to come by. Am I just totally thinking incorrectly ?

Re: Lease Options - Posted by Richard

Posted by Richard on April 20, 2005 at 12:54:21:

WAREIA,
I attended my first SAREIA meeting last night. I, like you, don’t have a whole lot of money for a down payment on a 2nd (3rd, 4th???) property or the cash flow to maintain payments on multiple properties. I asked one single question of the group last night:
My issue is this: I am very motivated and working very diligently to get my first deal - I hope I don’t lose it. On the flip side, God forbid somebody actually accepts my offer (grin)! What will I do then?!?!

I had barely finished when I thought they were going to bum rush me and have me thrown out of the hotel! As it turns out, people were falling over themselves to give me their business cards and asking me to call them as soon as I had a deal lined up.

Long story short - get into an investment club - networking issues solved. My next step is going to be contract assignments - not as much money on that end, but it’s going to get some cash flowing with less risk than rehabs and less uncertainty than sub-2’s. I plan on working with none of my own money or credit.

Good luck!

Re: Lease Options - Posted by WAREIA

Posted by WAREIA on April 20, 2005 at 11:44:14:

Flips are quick cash and cash can solve alot of problems. No one said you have to flip em all. You can hold a few too.

Re: Lease Options - Posted by enrico jenko

Posted by enrico jenko on April 20, 2005 at 15:42:12:

Maybe i am overly pessimistic; but could the reason they bumrushed you be because its that difficult to find these deals or is it because people are helpful ?