hello,

I am new here and I am not an agent. I usally spend my time in the REI clubs but today i want to expand my horizons and learn from some experts here.

I am forming a business that offers an alternative service to homeowners, basically we find qualified tenants that would like to lease with a purchase option.

I would like to work with local agents that have listings that my tanants want. I would like to approach these RE agencies to see if anyone is intersted in working with me in the future.

However my RE investor friends tell me that most agents dont understand lease options. They either think that its something illeagal or that they wont get paid.

I think that we CAN work together and that agents CAN get paid. My question is how would you approach these agencies.

What would you do or say to help them understand a) the concept and b) that I want to be on their team (not work against them)

What do you think it takes to have a relationship like this with an agent. Fees, commissions, etc......

thank you for your time
steve

What is your basic pitch on how you and agents make money using lease options? What responses have you gotten from agents so far? If you are not the homeowner, nor the tenant, nor an agent, what is your role and how are you getting compensated? Tell us a little more about your typical proposal and our forum members will be glad to give you some feedback.

Ditto to CaveMan's Questions.

For every "New" Listing, I usually get almost as many people wanting to rent it as I do asking about buying it; even more IF it is vacant. Renting is most often the "Kiss of Death" as far as Selling it is concerned. An astute market observer quickly realizes that a place that is For Sale and also For Rent is indicative of a Desperate Owner; and guides his future actions.

Serious Option Money typically exceeds what a Buyer might have to bring to the Closing Table; so that often so that eliminates all but the most serious, well heeled, Renters/Lessees who must delay taking Ownership for some other reason; like one I have being sold under a Land Contract because a prior Marriage hasn't yet been completely dissolved, and a former Spouse may lay a claim.

Sounds like a good business for a Private Investigation Firm and Very Good E&O or very Deep Pockets. We had one firm that "Certified" Tenants a couple of years ago and JUST ONE LAWSUIT sent them deep into Bankruptcy. Not an easy Enterprise to conduct from a distance over the Internet.

I look forward to the answers to CaveMan's questions. (A Spell Check would enhance the 1st impression you make. Just a thought.)

As an agent why would you say no to a lease option?
List all your negative reasons. this would help thx

steve

1.Statistically very few lease options actually ever close or lease purchases for that matter.The reasons are as follows:

*The buyers never work on there credit to qualify

*The market goes down making the property not appraise for the sales price in the contract.Even if the buyer wanted to purchase they have no money to amek up the difference for the low appraisal.

*After living in the property the buyers learn about things they do nto like about the property and now donto want to purchase.

*After the initial lease option payment the tenant has trouble paying and the seller spends more money evicting and replacing the carpet and paint to get the home in sellable condition again.

*The buyer get's relocated

*The buyer dies

*The buyer get's health problems,has a divorce,or loses one source of income making them need to downsize to a lower payment living arrangement.



I could go on and on and on.........

Investors selling junk systems can make things seem so easy and you will make millions.

Lease options do have there place but not in a regular sales situation.

If you have a real crappy house you can do lease options like repos for cars. Collect a huge payment upfront and then when they can't pay evict and do it all over again.

I am an investor as well.There are many more ways to make more money in less time than a lease option.

never mind. 65 views, and 3 bs responses. Illl just move on. Thanks for the warm welcome.

steve

Well Steve keep on beleiving is all I have to say. My world is looking pretty awesome from here!!

The BS is the attitude you have and the investor mentality.

What did you want people to say on here?? Oh yes the investors and get rich quick books and all the hairbrained schemes are just the greatest thing since sliced bread!

I am an investor and the BS is alot of the crap people are shucking out there.

My answers are from real world experience. If you can't handle the truth don't ask the question...