lease options - Posted by Patrick

Real Estate Investing
1

Posted by Russell on January 09, 2003 at 11:57:49:

I said Resell for $75k and meant to say$85k. I put a $10k minimum on the backdoor profit. In other words, I won’t do the deal if I can not resell it for $10k more than I paid for it.

My two cents

Russell

2

lease options - Posted by Patrick

Posted by Patrick on January 09, 2003 at 11:45:09:

Could someone explain lease options to me. Would I be leasing it from a seller or would I be leasing it to a purchaser or doing both? What is a good book that I can read to further explain the lease option?

I know I have been posting with a lot of questions, but I have been trying to do this for 6 months now and I think I have analysis paralysis and with the finding of this site I feel like a kid in the candy store.

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Re: lease options - Posted by Todd

Posted by Todd on January 09, 2003 at 16:28:06:

You combine a simple lease with an option to purchase, and bingo you have a lease/option. Now what does that mean for you? It means you are trying to control property for little or none of your own money. It all begins by finding or preferable having motivated sellers find you. You negotiate terms and a price that are workable for you. You then turn and market the property for sell on a rent-to-own basis. You make your money by collecting an upfront option consideration (normally 3-5% of the purchase price preferably), a monthly cashflow of 100-200 bucks and a back end profit (the real payday).
YES you would be leasing it from the seller, but dont forget the option too. Then you would be leasing it with an option to a buyer for a profit. Its called a sandwich lease/option as Russell pointed out.

well I was going to name some sites for you to visit but apparently they are offensive?

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Re: lease options - Posted by Russell

Posted by Russell on January 09, 2003 at 11:53:58:

In a “sandwich” lease option yes, you would be leasing it from a seller at say 500/mo and a purchase price of $70 and you would lease the property to a tenant/buyer at say $650/mo and a sales price of say $75k.

I like Bill Bronchick’s material onthe subject and Ron Legrand explains it well. You can find them both at reidepot.com

My two cents

russell