Posted by Keith on December 18, 2008 at 13:54:17:
Options and lease options are a safe way to invest. Particularly good for a new investor. Low risk, low capital requirements to begin.
You have some questions about them. Find yourself a good study course or individual who can help you out. But I think with lease options you’re on the right track for getting started in this business.
Questions about lease options etc - Posted by Justin
Posted by Justin on December 18, 2008 at 12:51:56:
I am a new investor and had a few questions I hope everyone could help me out with. What is the main differences between lease options and “subject to”. Do people in trouble easily let you take over their lease? What should I find out from the seller? Any late taxes, other bills on the property, etc? If I took over a lease would I be responcible for all their debt? How can I be sure theyre telling me the truth about their debts? If I take over a lease do I have to continue to pay at their mortgage and their interest rate? What is the best way to get a good start in real estate investing? Thank you for your help and Merry Christmas
Re: Questions about lease options etc - Posted by Bill Jacobsen
Posted by Bill Jacobsen on December 19, 2008 at 12:36:36:
With a lease/option you have the right or option to buy the property in the future at a set price. In the mean time you are renting the property. With a subject to you generally take title to the property and you make the existing mortgage payments.
Taking over a lease is a different subject. The lease may not be transferable. Why would you want to do that? You are not responsible for a mortgage if you have a lease.
People in trouble have a number of options. If they have some equity then lease options and subject to’s
make sense for them. If they have no equity or negative equity then there are other avenues for them.
Look at the amount of capital that you have available to see if these are the ways you want to go.
Bill