Lease Purchase options for Startups - Posted by Jody Dents

Posted by ScottE on July 09, 2002 at 24:26:01:


How are you advertising the ‘subject to’ houses you buy? I have been having a hard time weeding out the boneheads thinking they can answer a “Rent to Own” ad with $500 down and $600/month.


Lease Purchase options for Startups - Posted by Jody Dents

Posted by Jody Dents on July 06, 2002 at 23:16:18:


I want the start a stream line of new income for my startup company. I have only about $3000 to invest right now. I also have a friend who is a third party mediator for a mortgage company who handles troubled homebuyers (preforeclosures). How can I capture these buyers from him using a lease option agreement for those desparately needed to save their house and credit or is this the right way to go?


Jody Dents
Gilbert Arizona

Re: Lease Purchase options for Startups - Posted by Brian M. Powers(MI)

Posted by Brian M. Powers(MI) on July 06, 2002 at 23:39:32:

personally i don’t like buying houses on lease option from homeowners who are in some sort of trouble. you don’t have title, thus no ownership, and therefore you bear all the risk of the homeowners troubles.
if you are going to be dealing with troubled homeowners (preforeclosures etc.) than you should study up on buying subject to, or short sales.
i recommend buying on lease options only from “stable” homeowners who aren’t in trouble. these are people such as :

  1. sellers who bought a new house anticipating selling the old house and the old house never sold.
  2. seller who recently married and now own 2 houses back can’t sell one.
  3. job transfers.

basically people who are “moving up”.
thats not to say that something can’t go wrong with these people either but the chances are slimmer and when buying on lease options you are a little more exposed to risks given you dont have title.
just my opinion.