Lease Options
Lease Option Pitfall Number 5
Lease Option Pitfall Number 5 Now this is a very important Pitfall to avoid. You need to make money in this business or don’t do it. You can’t afford mistakes. This is a big one. In our paperwork, we have a weasel Clause that says if we don’t get a tenant buyer that’s suitable, the […]
Lease Option Pitfall Number 2
Lease Option Pitfall Number 2 Not getting a proper title search against the property is Pitfall number two. This has happened to me with one of my students. We did a title search and it said the title was in the name of one person, the occupant. This man wanted to do a lease purchase […]
Lease Option Pitfall Number 1
Lease Option Pitfall Number 1 For people that are new to least with option, you can either do a two ways, the first way is to be in the middle or a sandwich lease option, where you are lease optioning from the seller, and then subleasing and sub option to a tenant. Now the first […]
Lease Option Pitfall Number 3
Lease Option Pitfall Number 3 Protecting the seller from getting sued and getting a lien or a judgment with this particular property is it important part of dealing with least options. When we place a property into a Land Trust, it turns a public real estate investment into a private real estate investment. If somebody […]
Lease Option Pitfall Number 4
Lease Option Pitfall Number 4 Not using a loan servicer so that your payment goes directly to paying the mortgage company PITI. So the solution to making sure that the loan stays current and the seller owner of the property does not neglect to pay the mortgage on time, we use a loan servicer. These […]
Future Discounting
Future discounting is a strategy that we use in real estate investing. Let’s say that we have a sandwich lease option, where we’re leasing from a seller with an option to buy. We have two more years on a lease and the option before it expires or needs to be extended. And let’s say that […]
No Equity Deals
No equity deals means that if you sell the property, you can’t afford to pay the agent commission and the closing costs. How can you have no equity? Well if you bought an FHA loan and you rolled the closing costs into the mortgage, and the seller contributed some way to closing, you may have […]
– Negotiating the Deal for a Sandwich
Negotiating the Deal for a Sandwich A sandwich is a sandwich lease option or a sandwich land contract. You’re acting as a middleman. So here’s an example. Let’s say the property is worth $100,000. Market rent is $1,000 a month. When you do the sandwich, you have to negotiate a sales price less than $100,000 […]