We signed on the sale of a lease/option this past Friday. $5,000.00 down and the house is not even done yet! We posted a couple bandit signs(Rent-To-Own) at the corner and man we had over 100 calls...Talk about a buyers list:).People wanted to lock it in before the rehab was complete . We showed them photos of our past finished homes and explained what we would be doing and they are so happy. A single divorced women with 3 kids. We are giving her a fresh start and she/we are very happy to help. Its not just about the money:) Also received seller signed docs back on 2 accepted offers. One is a bank property and one is a private owned we picked up on a Land contract. Asking price was $40,000,we offered $20,000 with a five year land contract and they accepted. You never know if you don't ask...Put in the offers! Also got another offer accepted on a bank owned prop. This property is pretty much move-in condition. Still trying to decide if we want to flip or hold on a rent to own. Should be closing on the sale of one of our fix and flips next week and another one is getting the finishing touches and will be on the market next week. Until next time...Success to all!
John Wakefield
Another Lease option and more!
April 14th, 2012 | posted by jcwp
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Congrats!!
John, awesome job!! Keep kicking butt and rolling any negativity that gets in your way!!
Raymond
SSWWEEETTT!!!
Awesome job John! You and Julie are killin it!!! lol LOVE IT!!!
Great job!
Jen
Thanks
Thanks Jen, Hope to see you this weekend!
Fantastic job John,
this is a great example on how it's done!! Keep it up!!
Thank you!
Thanks Are we going to see you this weekend at the Edge?
Thank you for updating your progress
John and Julie,
Congratulations and good wishes for the help you give.
If you don't mind, could you give more details on the structure of the lease-op (or direct me if you journal-ed it)?
Also, "w/ a 5-year land contract", please explain or direct me. I'm wholesaling, but would like to be ready for creative deals. I know what a L/O is, just seeking examples of structure and rules of thumb used currently.
Thank you. Your time is appreciated.
Tina
Tina
It doesn't look like John responded to you, Sorry! He is not tech savy at all and he forgets to look for responses to his posts. I guess I have to get better at checking up on him
The lease option is done one of 2 ways. Either the sandwich kind or just offered instead of a straight rental. In either case it is the same to the end buyer. We offer them a locked in selling price for 2-4 years (negotiable) and a portion of their rent payment is applied to the selling price if and when they exercise their option to buy the property. We also take a $5,000 down (for the option). It is non-refundable if they don't buy the house, but 100% applied to the purchase price if they do. I don't know if you knew all that already, but that is how we work them. They sign 2 contracts also. one is a standard lease and one is the option to purchase contract.
Now sometimes we buy the house on a lease option ourselves, and then we put someone in it on a lease option. We only give the seller maybe $1,000 for the option, and less rent than we collect. we also sell it to the end buyer for more so we make money in the beginning (option) in the middle (rent) and at the end (final sale). How sweet is that?
Now we are buying one on a land contract. It is always important to negotiate the lowest down, and the longest amortization (to keep your payment low). You may have learned all this since you wrote. But we are happy to answer questions (hopefully sooner next time). Congrats on your success. You did great on stage!!