Eliminate your risks when acquiring Lease Options
Probably the hardest part of Lease Options is finding the homes from motivated sellers. That is because the seller usually has many other possibilities before they consider Lease Optioning their home to someone like me. When we first started out we weren’t getting a lot of people calling us with houses. So what we decided to do is put a house under Lease Option before we even have a Tenant-Buyer. The problem with that is that you end up having to “carry” these units if we don’t find a Tenant Buyer right away.
What we ended up doing was creating this Preliminary Market Assessment (PMA). A PMA is an agreement for us to start marketing a property without any financial obligation on our part. We spell out the terms and conditions that are to be included in the eventual documents, the Lease and the Option Agreement. Basically the PMA reduces my liability should we not be able to place a Tenant Buyer in this home. We usually market the property for 30 – 60 days looking for Tenant Buyers. If we don’t find anyone in that time period, we usually let the property go.
Happy Investing,
Jim Pellerin
Investor, Advisor, Speaker, Coach, Writer
Register at http://www.RiseBootCamp.com
Get my book at http://www.TheRealestateInvestingBook.com
Good Information at http://www.realtyinvestmentseminars.com
© 2009, JimPellerin. All rights reserved.
