Lease Options (by John [CO]) May 19, 2008 9:16 AM|
Lease Options (by Rose [CA]) May 19, 2008 9:56 AM
Lease Options (by BillS [CO]) May 19, 2008 12:05 PM
Lease Options (by John [CO]) May 19, 2008 12:15 PM
Lease Options (by BillS [CO]) May 19, 2008 2:19 PM
Lease Options (by John [CO]) Posted on: May 19, 2008 9:16 AM
State Specific Question About: COLORADO (CO)
Hi. My wife and I are considering selling a House we own in Colorado on a leaseoption. Has anyone run into any problems structuring these deals in Colorado? I'm cognizant and wary of creating equitable interest in the property for the tenant prior to them buying the property from us. Would love to hear any feedback people have.
Lease Options (by Rose [CA]) Posted on: May 19, 2008 9:56 AM
I am in the process of doing a lease option to sell one of my properties. I am going to an attorney that does real estate law so the contract he/she does has me covered. My concern is that if they default in payments the contract lets me get them out asap...also, if certain things are not maintained on the property the LO is canceled.
I will be paying the taxes and insurance of course during the LO but pretty much they are responsible for the repairs and maintenance. Not everyone does a LO the same. It depends on the type of property, and how much option money the person puts down. I have someone now that wants to put $23,000 down as option money. I think the more money a person brings to a LO the better chance they will take care of it and complete the LO.
I am getting top dollar for the price and doing the LO for a long time so when they go to buy the property hopefully it will appraise for what they paid.
The average LO, with only $2,000 to $5,000 down never makes it to completion. I read somewhere that 85% of LO's fail. --98.208.xx.xxx
Lease Options (by BillS [CO]) Posted on: May 19, 2008 12:05 PM
What are you trying to accomplish for your self with a lease option?
FYI most lease options do not result in the sale of the property. Statistics say that something like 90% end up going back to the "seller". Most buyers that want to do lease options have bad credit. Why would you get in a long term business engagement with someone who has a history of stiffing folks? If someone has good credit why don't they just get the money to buy from a bank?
Unless you are trying to generate more income from a rental property that you are willing to part with, lease options are probably not the best way to go.
Lease Options (by John [CO]) Posted on: May 19, 2008 12:15 PM
In our situation, the tenants are people who have good income, but she just went through a divorce and due to that had to declare BK. She is looking to improve her credit over time. --69.15.xx.xxx
Lease Options (by BillS [CO]) Posted on: May 19, 2008 2:19 PM
Declaring BK is usually a sign of poor money management not a divorce. Lots of people go through divorce but do not declare BK. This is especially the case for wage earners. I have heard of people with a business doing this to spite the other.
Lots of income does not mean you can manage it.