Lease Optioning in Long Beach CA

[Propertymagnets 7]

I am interested in using lease purchase (rent-to-own) strategies in Long Beach, CA. I have made online offers to FSBO"s. Recently I received this note from a home seller/broker."this is a seller's market and only a desperate owner who has no other avenues to sell a home, may consider an option.

Options to buy will include am upfront payment for a option which can be $10,000 or more. As an alternative, I can get you into a home with 3.5% FHA financing with only .5 % of your money and 3.0% from a CA agency. Therefore, on a $400,000 home, your out of pocket cost for the down payment is $2,000.

If you have no cash and you do not have anyone to give you a gift for the down payment, go to Craig's List where many rent to own programs are offered. BE VERY CAREFUL in your search there".

Is anyone on the Forum using Lease Options in Southern Cal? What is your experience?

[MichaelC 160]

Charles, take with a grain of salt any opinions or advice the Broker offers you. I don't think I have ever heard one tell me "This is a terrible time to buy real estate". Their livelihood is wholly dependent upon sales commissions. So it is in his best interest to get you thinking you need to buy ASAP because houses are flying off the shelf. I'm here to tell you it ain't so. Sure, things have stabilized since the market hit bottom, but we are far from seeing seller's calling the shots.

I'm working with a couple in San Diego and they recently signed up a $900K property which the homeowner has been trying to sell via an Agent for probably six months now. Granted, it's a higher end home, but not so much so in SoCal.

Bottom line: ignore the advice of Agents and Brokers, who see you as competition and the enemy, and market to homeowners. Some will ignore you, some will tell you to get lost, and still others will ask for more info. Focus on the latter and keep the faith.

[Propertymagnets 7]

Thanks Michael! I think I just needed to hear from "my guru" words of encouragement!