When you are doing lease option deals you need to find the right type of seller. A lease option seller needs to be motivated, this is pretty much the case with any type of real estate investing deal. But you need to find the right type of motivated seller. After all, you wouldn't try to do a short sale with a homeowner who is current on their payments.
In lease options we are looking for sellers who have good debt, meaning they aren't in financial trouble. These lease option sellers also don't need the money from the sale right away (even if they want it).
So what types of sellers are these?
Here are some examples:
- Long-time homeowners. They usually have low payments and have money saved elsewhere, which enables them to purchase another home without selling the current one.
- Inherited property owners. This gives them a second house without any need for it. Avoid deals with too many heirs, it's too hard to get them to agree.
- Built a new home. A seller who built a new home and is now selling their old home was able to get financing on the new construction without having to sell the old home. They can afford both payments, but who wants to pay for a home to sit empty very long?
- Newly married. More and more single people these days buy their own home. Then if they get married each spouse has a home. They can afford both but only need one.
- Job transfer. A seller that has been transferred out of the area and has already bought a new home in their new town is a good lease option seller. They can be especially motivated because no one is able to look after their old home since they've moved away.
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