Current Market Lease Options.......
I am new to lease options. In the So. CA area there is a slow down that is happening in the RE market........You all that are knowledgeable about Lease Options, How do you structure your deals?? What i mean is..........If Real Estate is Leveling off and Decreasing in Value, and Interest rates increase, what is the benefit to the T/B?? Also, How do you all adjust your monthly payments made to you from T/Bs if you take over a property that has an adjustable Rate Mortgage??
thanks......
[ Edited by sixti1 on Date 07/21/2006 ]
My point exactly.........there are a ton of ARM out there.........a payment can jump 200 to 400 to 800 within a years time........if i am seeking a nice positve cash flow on top of a monthly payment, how would i adjust for ARMS?? With Rising Foreclosures in So. CA. and rising interest rates, ARMS seem to be risky??
LOK,
You and I both stay away from ARM,s, at the current time.
Just to difficult to deal at this time and as we both know there are plenty of other deals with fixed rate loans to choose from.
John $Cash$ Locke
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I am having a hard time in getting a T/B for my lakeshore home priced at 415k.
Maybe I am not marketing it right?
Yes, you need a rent amount comparable to what the mortgage payment will be for them 12 months from today. Take the Sale Price, subtract Option Consideration, and amortize the balance for 30 years at 10 percent (some will pay more interest, and some will pay less) for a ballpark figure.
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Greetings,
Texas now classifies Lease Options as an “executory contract” or an “installment” land contract -- which means it’s treated as a sale.
In addition, the law states that you can’t have any underlying loan on the property, unless it’s purchase-money, and only then if you have the lender’s written permission. And it’s doubtful that any lender is going to give written authorization to sell on an installment contract. Which basically means you would need to own the property free and clear to sell it on a Lease Option.
I’m no lawyer, but that seems to be the general consensus on Texas Senate Bill 629.
My suggestion: STUDY.
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Jared,
Glad to meet you.
The top person regarding Lease Options is LeaseOptionKing he checks in from time to time and will be able to give you a handle on how to get started.
John $Cash$ Locke
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