Getting started with LP

[Guest Danny Pollock]

Hi

I having a problem getting started because, What if I cant get a tenant/buyer in a reasonable amount of time?

I dont want to tie up the owners. When they could be getting a renter.

Any help would be great.

[Joe Lee 0]

Well in the agreement for lease option there is a 45 day "opt out" period incase you can tfind a tenent/buyer in that amount of time. Also, you'd want to tie up the property for your protection. You dont want to find a tenent/buyer only for the seller to sell the house to someone esle. Besides, I'd hope they want someone to eventualy buy the house, not just rent. and in the lease option bizz, tenent/buyers put down a large non-refundable option consideration and that keeps them in line, unless they want to loose the money and not buy the house

 

anything else?

[MichaelC 160]

Hello, Danny, and welcome to The Naked Investor.

It's good and proper to be concerned about the homeowner. But you can't allow those concerns to paralyze you and prevent you from doing deals.

I'd suggest you go out and find that motivated seller first. Put together and reach an agreement with a homeowner on a lease purchase deal. Then, begin your search for a tenant/buyer. A few things will happen.

First, you will find that tenant/buyers are not a rare species. In fact, a well worded ad for a Rent to Own property in a desirable area with good terms will have your phone ringing off the hook. In other words, it is the exception rather than the norm that a tenant/buyer cannot be located for your deal.

Also, as Joe has already pointed out, you give yourself enough of a period to market the property so you are not obligated to make payments and, in the worse case scenario, you have a cancellation clause which allows you to cancel your agreement in the event you are unable to find a tenant/buyer.

You'll be fine, Danny, if you don't allow the dreaded Paralysis of Analysis to bog you down. Now, go out, talk to homeowners, and let us know how we can help you!