Lease Option

As for the above scenario I am simple matching a buyer(who wants to rent to own) to a seller.

I am doing that too - I have some motivated buyers that have contacted me but I have not found a home for them. How exactly are you doing yours?

I think its a great way to start out. Make sure you have a good Realtor.

So far I have gotten my leads from Craigslist. You can put an add out to attract buyers. i.e.) Rent to own. Also, explain to your Realtor what you are doing and have them put together a sellers list that consisting of sellers willing to lease.

In most cases the Realtor receives a finders fee that is equivalent to the amount of the first months rent. That is the amount you will split with the Realtor. In my area its actually easier to get people in a house via lease options as opposed to purchasing up front.

Hope this helps,
Zeek

Great point! with all the Foreclosures on the market, that also means there are alot of "credit challenged" buyers out there. Usually with foreclosure on their credit report, it will be 2 - 3 years before they can get financing. By offering Lease Option it allows the buyer to get on with their life and start purchasing without approval of a bank. Alot of sellers these days are offering that strategy for that reason. When you write the contract, you will need to put that in. Also, alot of times it is the buyer that will pay you the finders fee.

QUESTION HOW WOULD A LEASE OPTION MAKE SENSE IF THE SELLER OF THE PROPERTY OWES 300K BUT THE HOUSE IS WORTH LIKE 280K? WOULD THIS BE A GOOD DEAL FOR A LEASE OPTION?