Marketing to Buyers and Sellers

I am posting this because this question comes up a lot and it will give clarity to those considering this as a real estate option. So....

Basics of an Option

* Buyer pays the seller option money for the right to later purchase the property. This option money may be substantial or as little as $1.

* Buyer and seller may agree to a purchase price now or the buyer may agree to pay market value at the time the option is exercised. It is negotiable. However, most buyers want to lock in the future purchase price upon inception of the option.

OK, I've got 2 houses I want to advertise as lease options soon. One we bought a couple of months ago, have not started rehab yet. Paid $30,000. Rehab will be about $20K-$25K. I believe I can lease option it for $100K-$120K.

The other I am signing an accepted offer for today. Paying $87,000. Paint & cleaning, finish deck railing. Estimated cost $1K-$2K. I want to lease option for $125K-$150K.

I know there has been a LOT of discussion in here on the subject, but thought a new real-time discussion might be warranted (and I can get FREE help. lol).

Any thoughts?

Rina

Understand first of all that there IS a difference between price and value. Price is the amount you are asking for the property. Value is buyer perceived, and this perception of value is influenced by many factors such as location, features, condition, comparison to other purchase option, etc. By attending to details that can have a positive impact on the value, sellers can significantly increase their chance of attracting qualified buyers willing to pay the asking price.
Some tips to achieve a positive impact on value are:

I am looking at a house to purchase. They are asking 79,900 for it, it has been on the mrket since January, and the price came down so the owner should be motivated. He used to rent it but no longer wants to do that so it has been sitting empty for a bit. I havent contacted him yet, I just found out his name and address today. How could I go about getting a no money down deal and maybe a little cash back?

I just visited a web site called Caifornia Housing Finance Agency which caters to low amd moderate income families who are 1st time buyers. For instance in LA county a 3+ person family has to make under %106,120 to qualify. The purchase price has to be under $729,750. And you have to live in it until SOLD or REFIED. They used to give 100% loans minus commission. Sounds like a good thing to tell your new buyer and sell them your house........ I thought Anita might like this if she doesn't already know it.
Jrgnsn

Hey everyone,

As Rookie investor each day is both exciting and a bit nerve racking. I feel I have learned so much in the last month, not only from Deans Interactive training course but from this site as well.

I am not in a position to buy and sell yet, so I'm currently working as a bird dog for another investor.

Anyway I am close to making my first deal. It will be small, yet huge because its the first.

I am currently working with a motivated buyer that is looking for a lease option.

How many know much about TIC's? If you do let's hear what you know.

I also have a lot on TIC's for purchasing property and will add the information after the forum gets started if people would like.

This particular avenue of FSBO is what I do best, but I am curious to know how other approach the owners of FSBO or properties that are not listed and you have to track owner down.

Please give examples, I am trying to get a little more creative in my approach.

Thank you,

I have heard multiple times, from clients, that the rental market is now saturated and no one can sell. Some of those clients that have mention this to me are afraid to purchase a property to rent because they do not feel they will get a renter or lease optioner.

Ok Guys

Thank you,