Buying Short Then Using Lease-option

I met an investor last week that buys with short-sales and then offers to keep the same people in the house by offering them a lease-option to stay.



Thoughts on that strategy? What are the risks, pitfalls, etc with keeping the same people in the house with a lease-option?



Jim

Comments(2)

  • 4cash7th March, 2007

    I am not the authority by any means.
    But I think the lease back if placed in a trust is the safeway to go here...

    my 2 pennies...

  • bargain767th March, 2007

    Every time I let an owner stay in the property, I got burned one way or the other. Legal issues, trashed properties, stolen appliances, etc., ...One even burned the Double Wide to the ground after emptying personal belongings.

    Now every time we even think of letting someone stay on, we say "Let no Good Deed go unpunished" to remind us of previous experiences. We empty them all out and clean the place up before we sell or rent.

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