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levmills

Any luck with lease purchase on luxury homes?

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Has anyone here done any deals.... say over $500,000? I imagine the rules still apply. What was the time frame for getting the deal done?

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Depending upon which part of the country the property is located, $500K could very well be the median price of properties in the area. The only difference between doing a $500K property and a $150K property are the numbers, and the smaller pool of potential t/b's. Yes, it will take longer, but on the pro side is a larger payday since the option consideration will be quite a bit more.

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The only difference between doing a $500K property and a $150K property are the numbers, and the smaller pool of potential t/b's. Yes, it will take longer, but on the pro side is a larger payday since the option consideration will be quite a bit more.

 

Ok. Thats what I thought. The most expensive lease purchase in our system is $4.7 Million. Imagine the option money on that. B)

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Yeah, it depends on the market. We just closed one in Diamond Bar, CA for a little over 500k

& that was fairly median price range for that area.

 

One of my partners got contacted by an investor in Tampa, FL with a 2m property & a 6k month

payment. Not sure if we're going to go after that one (kinda a specialty item). Plus, on that size

of a sale price, it's almost guaranteed that the seller will need to do some kind of wrap & at least

partially finance it (not like it's goin FHA..lol).

 

JvM

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I think the most we did was about $400k or so...

What you are looking at there normally.....are high income self employed people that need to have a come to Jesus meeting with their CPA about how much they pay themselves etc.

You are also looking at conventional financing...actually...jumbo loan above $417k in most areas....so they would need 20% down for finance.d...

So look to get 10% option or more if possible.

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I think the most we did was about $400k or so...

What you are looking at there normally.....are high income self employed people that need to have a come to Jesus meeting with their CPA about how much they pay themselves etc.

You are also looking at conventional financing...actually...jumbo loan above $417k in most areas....so they would need 20% down for finance.d...

So look to get 10% option or more if possible.

 

He said come to Jesus meeting. Is that where...nevermind.

 

The grass is greener on the otherside.. I used to live in the San Jose - Bay Area (500k median home price) the RE market there is actually not bad compared to other parts of the country. Therefore, I couldn't get anyone to allow me to Lease Purchase their house even if I gave them all the Option money and threw in a goat. Why would they when they don't need a 'Plan B'? Also, the 500k properties only rent for $2,000 per month. Not even close to what the T/B mortgage payment will be when they try and get financing with taxes/insurance... I am not saying it is impossible...Anything is possible...Pilot is flying to Costa Rica on an X2 Power Flyer...

 

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This is such an awkward moment..I don't know what's worse....the fact that Jake is stalking a site called littlekid.com or his stupid gay picture he has put up...seriously dude...WTF?

Seriously man.. I know you dressed up for that picture...but....c'mon..you look like you are either looking at a poster of the boy band One Direction or you just put your manliness in a bowl of Jello.

WHEEE!!!! The great thing about going out of the country for 2 weeks is I can say stuff that I don't care about the ramifications.....I'm going to drink rum and hang in the rain forest....

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This is such an awkward moment..I don't know what's worse....the fact that Jake is stalking a site called littlekid.com or his stupid gay picture he has put up...seriously dude...WTF?

Seriously man.. I know you dressed up for that picture...but....c'mon..you look like you are either looking at a poster of the boy band One Direction or you just put your manliness in a bowl of Jello.

WHEEE!!!! The great thing about going out of the country for 2 weeks is I can say stuff that I don't care about the ramifications.....I'm going to drink rum and hang in the rain forest....

WHEEE, indeed! :lol: And I thought you and Jake were BFFs.

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This is such an awkward moment..I don't know what's worse....the fact that Jake is stalking a site called littlekid.com or his stupid gay picture he has put up...seriously dude...WTF?

Seriously man.. I know you dressed up for that picture...but....c'mon..you look like you are either looking at a poster of the boy band One Direction or you just put your manliness in a bowl of Jello.

 

 

To clarify...it wan't Jello, it was Greek Yogurt. Because Bill Cosby creeps me out

Seriously, how did that picture get up?? It wasn't me. I know less about computers than Jackson...and he is from Texass. Good thing it wasn't a picture of me in my birthday suit with an apple pie. :blink: Speaking of my Birthday suit...I am going to be 29 in two weeks. Just half of Jackson's age... 'Grandpa John' Sounds like an old country song...

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This is such an awkward moment..I don't know what's worse....the fact that Jake is stalking a site called littlekid.com or his stupid gay picture he has put up...seriously dude...WTF?

Seriously man.. I know you dressed up for that picture...but....c'mon..you look like you are either looking at a poster of the boy band One Direction or you just put your manliness in a bowl of Jello.

WHEEE!!!! The great thing about going out of the country for 2 weeks is I can say stuff that I don't care about the ramifications.....I'm going to drink rum and hang in the rain forest....

WHEEE, indeed! :lol: And I thought you and Jake were BFFs.

 

Seriously MC...I feel so violated. And he didn't even buy me dinner first. Well actually he kinda did. And some whiskey shots. Just no flowers... Well by now Jackson has probably been in the Costa Rican jail for at least a few hours for asking a 17 year old girl to marry him...or is that legal there? Either way I am sure he is in prison. Only he can take a country where prostitution and just about anything else is legal, yet he will find some way to break the law... Hopefully he got a relly nice cellmate.

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Back on the serious side, Yes high prices and low rent ratios make it tough but there are still sellers that want to reduce the flow of money leaving their wallets and I have found takers in Santa Clara (Silicon Valley) and Contra Costa County. $600k+ I also agree there will be less activity not due to price range but to a better market and the chance of a straight sale. The average rent in those areas were one half of one percent for the average priced house, and yet many deals could be put together, the higher the price the lower percent of rent. . 3-5% option money is the same hardship for a $100k buyer as it is for a $900k buyer, well almost..

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