Dr X.

thanks for responding;

My figures were very tentative and I have no set figures I go by as I have never LO’d before but am seriously considering it; although I do have a limit of CoCr which I would stick by when going into LOs. My figures were just used to illustrate my concern that you may be giving up too much profit for the sake of the…[Read more]

PS. It is definitely their responsibility to come up with the call price at the end of the lease. And if they are maxed out and cannot afford it, your goal of helping them will turn into a nightmare for them.

If I was a homebuyer I would love you!!!!…..But as an investor I’d say that you are taking a MASSIVE BLOW!!! However, it really depends on your goal of the lease option…If your goal is to add capital value or cashflow or both. Although to me it seems like you are avoiding both potential Cap and cashflow return gains by being far too generous…[Read more]

Celivia, thanks for asking;

Yes it does mean the risk is larger than usual for the option *buyer*…..but that risk is manageable to the extent that you both work meticulously with them to make it both affordable, sop they don’t rescind on the option early, and a very real possibility that they will one day own the property they intend to…[Read more]

thanks for your advice paul, greatly appreciated
regards

yidn

I would have assumed that there is no need to re-value a property after a contractual lease-option expires, as the contract already dictatess the strike price and the client would therefore have to take a loss, or alternatively, negotiate a renewal of the LO if you were amenable to the idea. Please correct me if i’m wrong, but just as a put…[Read more]

Thankyou everyone for you comments!

In response to Celivia’s doubting the win-win nature of the lease-optioning strategy I propose to undertake, I respond by saying that I would discourage any client to be entering an agreement they do not understand fully, and which does not benefit them after I have disclosed my profit intentions, the reasons…[Read more]