Can I "Flip" A Lease Option?
This morning I had the idea of flipping/assigning lease options. Is anyone doing this?
It appears to me, that I could cut my liability, remove myself from landlording, and make a small profit in the process.
Any thoughts?
Thanks.
You can do cooperative assignments.
Quote:
On 2004-07-30 12:54, miraclehomes wrote:
You can do cooperative assignments.
Are you saying that I can't flip the l/o, or that I should look at cooperative assignements instead. (There doesn't seem to be much on the board about them.)
Just get the L/O contract and assign it, just so that your bases are covered. Are you needing to know how to do that?
I was intending to acquire the necessary forms from a local attorney, and ask then.
But I'll take an order of steps if you have one.
My thoughts were:
1) find seller
2) qualify property
3) get l/o contract
4) qualify a t/b (background, credit, $$)
5) sign an assignment contract with t/b
6) collect money
7) inform seller (and hand over t/b background info)
8) go to step 1: lather, rinse, repeat
You would be getting the assignment signed by the seller. There are so many ways to do this. Also, go to a good attorney and get the correct forms from your state. You will need a good lease/ Option form with a sublet clause.
Great Advice Lease Option King!
You are absolutely right! To add my twist to things, do the following:
-Get $3k-$5k option money, non-refundable if they dont perform.
-Lease option the house for 'future value' usually 10% above market value.
-Put an ARM loan on the property so that you can get some cash-flow.
-Make sure the people you lease-option the property to have decent credit and are actively working with a lender to restore their credit so that they can purchase the house in a year.
Do the math, $3k-$5k down, $300-$700 positive monthy cash-flow depending on price range, 10% above market value. If you bought it right, this translates into a good payday in my book.
Best Riches,
Jeff Adam
[addsig]
WE WILL MAKE YOUR
HOUSE PAYMENT UNTIL
IT SELLS! WE ARE NOT
AGENTS. NO FEES, NO
COMMISSIONS. 555-5555
lok's sign says it all.......kenmax
If you go to www.knproperties.com, look where it says Stop Foreclosure, the word Foreclosure is misspelled.
Other than that everything looks just fine.
[ Edited by Red_October on Date 08/03/2004 ]