02/23/2019
There are some risks that you have to consider when selling a property with a lease option.
a) Risk of vacancy. Over time, you will have vacancies. Each month the property is vacant, you lose money. The beauty of working with us is that we have buyers and can fill it very quickly. The risk of selling it on the open market is often much higher than selling it through us with a Lease Option. Keeping it on the open market, you must pay the mortgage, utilities, taxes, insurance, grass cutting, maintenance and wear and tear that comes from keeping a property vacant (did you know that the plumbing will often deteriorate in a vacant house because of lack of use?).
b) Risk of damage from tenants. There is always going to be wear and tear on a house when someone lives in it. When they move out, you will need to have it cleaned up before you sell it again. It's also possible that someone will deliberately 'trash' your house. This is very rare and is covered by insurance.
c) Management headaches. I hate managing property and make a point NEVER to talk to any of my tenants. I have a competent property manager do this for me. The biggest reason people say they hate real estate investing is because they manage their own property. This, in my opinion just doesn't make sense. Let someone else do it for you - they typically charge about 10% of the rent. I can recommend someone good if you like.
d) Risk of picking a bad buyer/tenant. This is another mistake most newbie investors make - they screw up on tenant selection. That is why we put them through a qualification process that vastly improves the tenant/buyer's success rate.
The downside is that taking on tenant buyers, in my opinion, is much smaller than the upside. A tenant that views your property as their home rather than just a rental property is much better.
Message me if your interested in discussing selling a property using a lease option.
