It’s no secret that I love lease options and what they can do for your real estate portfolio. But there are some common mistakes that every investor makes that I want you to avoid. I want your lease option experience to be hassle-free, so listen close while I unload my years of wisdom on you.
First of all, do not pay too much option deposit money! A lot of times when I’m negotiating with a seller, I’ll offer a thousand dollar option deposit money. Remember, you want to put yourself in the best position possible, that’s why you also never want to personally guarantee a long term lease.
In your hurry to get a tenant in a house, don’t forget to pre-screen the seller too. You’ll want to ask questions like:
- Do you have any judgments or lawsuits filed against you?
- Do you owe any back payments?
- Do you owe any back taxes?
- Are you going through a bankruptcy?
One of your most powerful tools in your negotiating toolbox is the phrase “I’ll get back to you”. I show you how I use it to buy some time and make certain about my numbers.
If you’d like to dive more deeply into lease options, my webinar Simple Lease Options gives away all of my tools, like my one-page contract, my calculator, my proposals, and so much more. It’s free, and it’s available at SLOClass.com.
Listen and learn:
- What kind of repairs you should do on a lease option property.
- Why you should prescreen the sellers, not just the tenants!
- The rule of thumb for buying awkward and weird properties.
- The only time I would work within a short timeframe.
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