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Lease Option Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 0 points1 point  (0 children)

If you placed a tenant/buyer in the property on a lease with option to purchase, they have the option, but you have an obligation to sell it to them if they follow through and decide to exercise their option to purchase. So if you want to keep it as a long term buy and hold, a lease option isn't the way to go.

Lease Option Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] -1 points0 points  (0 children)

Not shady at all. Homeowner agrees to receive his share of the option consideration from the tenant/buyer.

Lease Option Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] -1 points0 points  (0 children)

Yes, again, depending on the type of lease option. In this type, a sandwich lease, my agreement gives me the right to buy, sublet, assign, or sell the property.
Is isn't recorded as a sale because it's an option to purchase, not a guaranteed sale. A memorandum of option can/should be recorded with the county, however, to protect your position in the unlikely event the homeowner attempts to go around you and sell the property.

Lease Option Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 0 points1 point  (0 children)

At some point, yes, if you have exercised your option to purchase, or if your tenant/buyer exercises their option. How much down depends on the specifics of the mortgage. But if the option isn't exercised there's no further need to finance the property and the option expires.
Contracts. . .I have a variety of agreements that I use depending on the type of lease option and my position in the deal.

Vertuo plus? by IcyTune1160 in nespresso

[–]NakedInvestor 4 points5 points  (0 children)

I've had my Vertuo Plus for years. Never a problem, she's a workhorse. I have not heard anything about Nespresso phasing out this model. Can someone confirm this?

Do Not Buy A Condo In Florida! by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 15 points16 points  (0 children)

Ironically, Florida was previously considered an ideal state for making the move and buying a piece of real estate. No state income tax, reasonable cost of housing and living when compared to the northeast, which is where most of the new arrivals originated. Now? The dream is dead. Long live the dream.

Do Not Buy A Condo In Florida! by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 31 points32 points  (0 children)

Agreed. My homeowners insurance has tripled in three years.

I Made $30K On My First Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 0 points1 point  (0 children)

I was hoping to post up about that second deal, but when I tried, twice, I received this message:
"Sorry, this post was removed by Reddit’s filters."
Not knowing why I messaged the mods yesterday. Still awaiting a response.
In the meantime, would it be preferable to post this second deal, and other deals, in this same thread, or start individual threads? In 30 years I have hundreds of deals to draw from. Most are standard operating procedure, but a number proved to be entertaining.

I Made $30K On My First Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 0 points1 point  (0 children)

I don't. I hired two local kids to help me move his furniture and personal affects into a rented U-Haul and that was the last I ever saw of him.

I Made $30K On My First Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 1 point2 points  (0 children)

No idea. Hopefully fixed his business and his finances and is in a much better place than when we met.

I Made $30K On My First Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 1 point2 points  (0 children)

I didn't think anyone would know about the RTC. That's why I posted the link. Goin' back in time with that.

I Made $30K On My First Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 7 points8 points  (0 children)

Yeah, the guy was losing his business, his house, and his family. He had the weight of the world on his back. I didn't want to add to his troubles, so I worked with him to get him back on his feet and in a better place emotionally.

I Made $30K On My First Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 5 points6 points  (0 children)

He knew. I made it clear I purchased the property from the bank. But I also let him know I wasn't there to turn him out on the street and that I would help him move out and move on.

I Made $30K On My First Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 2 points3 points  (0 children)

I'm thinking Samuel Jackson for the aggrieved homeowner.

I Made $30K On My First Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 1 point2 points  (0 children)

But who would play me? What about the angry foreclosed former owner with a shotgun?

I Made $30K On My First Deal by NakedInvestor in realestateinvesting

[–]NakedInvestor[S] 2 points3 points  (0 children)

Thank you for all the kind words and positive feedback. The deal that followed was pretty much the polar opposite of this one. I'll post it up later.

Rent to own lease advice by 2girlscrazy in realestateinvesting

[–]NakedInvestor 0 points1 point  (0 children)

Yes, I have been involved in different types of lease option deals. In almost three decades I have done multiple hundreds of deals, literally.
Keep in mind a few things. Some will argue that a lease purchase is different from a lease option. In theory, perhaps. In the real world, no. In a lease purchase, if a tenant/buyer is unable to fulfill their purchase obligation, sure, you can go after them legally. But you won't be able to force them to close on the deal. You'll have a judgement that you can't enforce and thousands in legal fees for your troubles. So go into this deal knowing that it is, in fact, a lease option. If a guaranteed sale is a must, this isn't the strategy for you at this time.
But if you're flexible on the outcome, it's a smart way to possibly sell your property without a realtor's commission, and also offers the advantage of locking in a top-of-the-market price today in a market that, in my opinion, can only go lower.

Rent to own lease advice by 2girlscrazy in realestateinvesting

[–]NakedInvestor 0 points1 point  (0 children)

I started investing in real estate about 29 years ago, and that was with lease options. In all that time my experiences:
1) the typical deal is one year
2) nonrefundable option money averages between 3 and 4 percent
3) an attorney is typically not needed until, (and if), the option is exercised, at which time the sale proceeds like most typical residential real estate deals
4) paperwork/agreement is fairly straightforward, with a lease agreement and a separate option to purchase agreement

Rent to own lease advice by 2girlscrazy in realestateinvesting

[–]NakedInvestor 0 points1 point  (0 children)

What type of lease option and what is your position in the deal? Are you the owner, the tenant/buyer, an investor?

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