Use This Lease Option Method Alternative to Buying a Foreclosure Property
Foreclosure Investing with a Lease Option Twist
One of the many reasons that lease options are so popular is the possibility of creating a No or Low Down payment to purchase the home.
This is done by working directly with the seller of the house, and hammering out a deal between you and the seller.
That means, no banks, no credit checks and no qualifying!
Offer to pay maximum dollar before repairs to entice the seller to offer you good terms for buying the property.
While other investors come by and offer them low-ball insulting offers, you might get the nod for coming out and offering a better deal.
Remember, these people are in distress and if you put together a fair offer for both parties you may get the property at a really good price.
While you are negotiating with the seller, find out just what they need to get rid of the property and go from there.
If the seller can't or won't fix the problem areas, ask them to add the cost into the final sales price to make it fair for both parties.
When purchasing property via "For Sale By Owners" (in other words, no real estate agents), always buy the property on a Land contract or a Contract for Deed.
If you are simply a renter of the property, the seller only needs to get a court order of eviction and your out of the property.
If however you are the owner of the property, the seller will most certainly have to induce what is called a judicial foreclosure.
The difference is probably $10,000 dollars or more in attorney fees, court fees and between 8-12 months time for processing.
A judicial foreclosure is very costly and time consuming for the seller, and would probably force him to negotiate more favorably towards you.
They didn't fulfill their end of the contract by paying the seller their monthly mortgage payment like they should have, yet the seller couldn't do anything until the pending foreclosure had been resolved.
The option that you have your attorney write up, simply will include that the option is not an option unless terms of the lease agreement is met.
The option would be null and void if the renter moves out before the lease agreement is up or is late on any rental payment within that time.
By doing so, if your renter violates any portion of the lease, you simply file for an eviction and your tenant will need to evacuate the property within the time stated by the eviction notice given by a judge.
You don't want another investor in there trying to profit off of your deal.
Remind the buyer/renter that the sales price is based on what the price is at the present time, and not when they had initially started their lease.
Happy Investing
filed under: foreclosure investing
One of the many reasons that lease options are so popular is the possibility of creating a No or Low Down payment to purchase the home.
This is done by working directly with the seller of the house, and hammering out a deal between you and the seller.
That means, no banks, no credit checks and no qualifying!
Offer to pay maximum dollar before repairs to entice the seller to offer you good terms for buying the property.
While other investors come by and offer them low-ball insulting offers, you might get the nod for coming out and offering a better deal.
Remember, these people are in distress and if you put together a fair offer for both parties you may get the property at a really good price.
While you are negotiating with the seller, find out just what they need to get rid of the property and go from there.
If the seller can't or won't fix the problem areas, ask them to add the cost into the final sales price to make it fair for both parties.
When purchasing property via "For Sale By Owners" (in other words, no real estate agents), always buy the property on a Land contract or a Contract for Deed.
If you are simply a renter of the property, the seller only needs to get a court order of eviction and your out of the property.
If however you are the owner of the property, the seller will most certainly have to induce what is called a judicial foreclosure.
The difference is probably $10,000 dollars or more in attorney fees, court fees and between 8-12 months time for processing.
A judicial foreclosure is very costly and time consuming for the seller, and would probably force him to negotiate more favorably towards you.
They didn't fulfill their end of the contract by paying the seller their monthly mortgage payment like they should have, yet the seller couldn't do anything until the pending foreclosure had been resolved.
The option that you have your attorney write up, simply will include that the option is not an option unless terms of the lease agreement is met.
The option would be null and void if the renter moves out before the lease agreement is up or is late on any rental payment within that time.
By doing so, if your renter violates any portion of the lease, you simply file for an eviction and your tenant will need to evacuate the property within the time stated by the eviction notice given by a judge.
You don't want another investor in there trying to profit off of your deal.
Remind the buyer/renter that the sales price is based on what the price is at the present time, and not when they had initially started their lease.
Happy Investing
filed under: foreclosure investing
posted by Mr. Foreclosure at 5:21 PM
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