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Hello everyone, I am new to investing and am interested in pursuing lease options and lease purchases. I was just wondering if most people are forced to put a time frame that the house will be sold by in the contract i.e. 24 months or if they are able to convince the seller to give them as much time as needed to sell it? If you are able to convince the seller to give you as much time as you need can you give me an example of what you tell them.
I appreciate any info you guys can give me!
Thanks,
Michelle
Michelle,
ARe you in Texas? If so, you are extemely limited on what you can do with a lease option/purchase.
Jackie
Michelle,
You are extremely limited in doing lease options in Texas.
You can buy with a lease option if you plan to live in the property.
(unless it is free and clear)You cannot do a sandwich lease option unless there is no mortgage on the property – unless the buyer gets new financing within 6 months. But it it is 6 months and a day, you could have to give back all the money they have given you.
You cannot have a non-refundable option consideration.
$250 a day fines and triple damages if you cross the line
Bottom line – it’s not worth it to even get involved with a lease option in Texas — too many rules and too many RESTRICTIONS
Jackie
These laws have been in place for more than a YEAR.
Michelle,
Just because you can’t do a lease option, it does not mean that you can’t control a property with an option, then find a retail buyer by doing a Highest Bidder Sale. Or you can buy with seller financing then sell with seller financing. Or you can… there are plenty of other ways to turn that house in to $$$$
Dont’ get hung up on making deals fit in to a L/O box – get creative.
Jackie
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