lease option easiest way without hassle

[Guest jimmy]

Hi Everyone,

I think the most effective way to use the lease option is to buy the house then find the tenant/buyer. If you were to find a property list "for sale" or "for rent", you have to

convince the seller to buy into the lease option, which is no fun. So isn't buying

the property yourself and LO is the most efficent way to do the LO?

 

 

thank you much.

[Doug Pretorius (ON) 9]

Yes, that's the easiest way to do it, but you need a lot of money and credit. That money and credit has to come from investors (unless you're already rich), and sometimes it's just as hard to convince investors as it is to convince sellers.

 

Just look at me, I've had 5 investors bail in the last few weeks despite offering them 75%+ returns on their investment.

 

The fact is there simply is no way to make REI truly "easy", otherwise everyone would be doing it.

[tgaspard 0]

Jimmy

 

How about a slight modification. Don't buy outright, yet put your sign in the yards of many sellers. Tell these sellers that you will buy their house only if you can fill the house with a T/B who is willing to pay me 10% more.

 

Now if you get a T/B then you tell that same seller, "I have a buyer ready to pay 10% more for your property - I can buy it right now or offer this investment package to you Mr. Seller". Thus do a CA with the seller or buy it outright or find another investor.

 

Doug - why have 5 investors bailed on you?

 

Todd

[Adam King (MI) 1]

Jimmy,

Hi Everyone,

I think the most effective way to use the lease option is to buy the house then find the tenant/buyer. If you were to find a property list "for sale" or "for rent", you have to

convince the seller to buy into the lease option, which is no fun. So isn't buying

the property yourself and LO is the most efficent way to do the LO?

 

I disagree. This isn't the easiest way to do a LO, or the least risky. I buy houses and take them over on terms. I find that "buying cash" is NOT easier than getting them on terms. As a matter of fact, I find it MUCH harder. If you go the cash route, you're still going after the same motivated sellers that are usually willing to do a deal on terms. Then you have to get enough off of the price to justify all of the closing and holding costs. And then you can include the unlimited headaches of brokers and lenders. So, how much money and patience do you have to buy several houses cash? It's not an easy question to answer....

 

Doug,

 

Just look at me, I've had 5 investors bail in the last few weeks despite offering them 75%+ returns on their investment.

 

The fact is there simply is no way to make REI truly "easy", otherwise everyone would be doing it.

 

I agree, this isn't an easy business in the beginning, but that DOES change. It DOES get easier and easier. It's just the attitude that needs adjustment. And that took me two years to adjust.

 

Getting investors that are willing to do what you ask them to do is not easy. But once you have them, you must produce to keep them satisfied. I would like to know why they bailed on you as well....hum.....

Regards,

Adam

[Doug Pretorius (ON) 9]

I have no idea, if I could qualify for the mortgages I'd buy every one of these houses myself.

[Adam King (MI) 1]

Doug,

What's your system for your investors?

Adam

[Doug Pretorius (ON) 9]

Adam, what do you mean? What am I offering them? How am I finding them? How am I presenting it to them? Or all of the above?

[-Tony- 0]

I think what Adam means' is whats in it for them (what do you offer them)....And if it isn't what Adam was asking, make it my Q: please.

[Adam King (MI) 1]

Doug,

Tony is right, I am asking what's in it for them. I actually put it in my consulting agreements with my investors that they MUST be able to hold their obligations and that they have not lied to me when they say they can. This means that I'm serious about making all of us money when I offer them a true deal.

I'm just wondering what kind of outline you have for all of you to profit per deal?

Regards,

Adam

[Doug Pretorius (ON) 9]

Oh I see. No I didn't have any signed agreement that they must be able to perform, which obviously is a good idea to save my time.

 

As for what's in it for them, well, I would think that making 20-100% on your money without any work sounds pretty good. But maybe I don't understand the psychology of other investors.

[Adam King (MI) 1]

Doug,

That makes a lot of sense. I give my investors their money and the deal. I.e. I get them the financing, the deal, the paperwork, the pre-approval, the comps, the brokers, the attorneys, etc. Offer that and you're luck will change.

Regards,

Adam

[Doug Pretorius (ON) 9]

Adam, with the last deal I offered: The brokers (including pre-approval and financing), attorneys, the deal, the paperwork, the comps, and the buyer ... to no avail.

 

Maybe I'm talking to the wrong investors these days, they seem to want to do deals themselves rather than make money on one put together by someone else.

[Adam King (MI) 1]

Doug,

 

Maybe I'm talking to the wrong investors these days, they seem to want to do deals themselves rather than make money on one put together by someone else.

 

Yes, it sounds like you're just working with the wrong people. If you can prove to them they'll make money with you, you'll get them hooked. I would suggest having a plan or something in writing. I usually do a small seminar with a dry erase board, or at least have dinner with some material.

Regards,

Adam

[-Tony- 0]

or at least have dinner with some material.

Adam is the wife out of town

[MichaelC 160]

or at least have dinner with some material.

Adam is the wife out of town