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Buying or Selling a Home/selling vs. lease with option to buy
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Question
Hi,
I recently acquired a home thru a foreclosure, and have had it on the market to sell with very little activity since our market is down currently (Calif). I would like to know the advantages & disadvantages to me if I consider leasing it to someone with an option to buy.
Thank you!
Christy
Hi Kristi- Great question! Leasing one of your investment properties in a soft market is not a bad idea. On the plus side you can cash flow the home rather than it be vacant sitting for sale. On the other side of the coin you are still the owner of the home so you have to be ready to be a land lord. (i.e. collect rent- do the property maintinence etc.) Also make sure the option price is a fair one for you. Say today the home is worth 200k and that's what you set the price at and 3 years down the road when the buyer wants to buy and all of a sudden the home is worth 225k you don't want to walk away from that equity or be stuck in a contract for a lower price with that buyer/renter. Best of luck in you're real estate ventures!
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Answers by Expert:
- Dick Dennis
- Jessica Bryan
- liznarr
- Hans Weber, Licensed Broker Associate
- Sue Bernstein
- Karyn Foley
- Dottie Worthington
- Jim Root
- Russel Ray
- Connie Wildasinn-Broker,GRI,Realtor®
- Todd C. Menard
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- Jay Denit
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- Marvin G. Bobbitt, III
- Nori J. Muster
- Sharon Huneycutt, Realtor, Associate Broker, GRI, e-PRO
- CJ Brasiel
- Jeff Kessler
- Kathryn Hisert
- Emily
- Ted Lewis
- Kerrin Kostelic, FL Broker Associate, GRI, AHWD
- Tim Norris
Jay Denit
Expertise
I'm a Real Estate Broker/Loan Consultant in the state of Colorado. We have a separate foreclosure investing company, so I'm more than willing to answer any Colorado foreclosure questions for both the home owner and investor. I have sold bank owned homes all across the country for all of the big banks. I'd be happy to answer any questions about buying or selling residential homes and specialize in luxury estates. Furthermore, I have some experience in land acquisition and development and know a touch about water rights. We are a licensed lender in most states, so I can answer general questions about all types of mortgages.
Experience
My experience is really anything that has to do with real estate. From buying and selling to investing and foreclosure, I’ve done it all. Being able to handle the acquisition and financing under one roof gives me the intimate knowledge of all facets of property conveyance. My foreclosure/bank owned property (REO) experience gives me the problem solving mindset to always find a solution.
Organizations
BARA- Boulder Association of Realtors
NAR- National Association of Realtors
CAR- Colorado Association of Realtors
Education/Credentials
Xavier University-- BSBA Finance
Colorado State University-- Professional Certificate in Project Management
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