Do you think some of the lease option gurus are unethical?
Some deals that I have been reading about are structured in a way that is against the tenant/buyers being able to save enough deposit for conventional financing.
Charging astronomical rents and small rent credits on a one year contract which is non-extendable and if it is it comes at a high cost[angry2]
Hell, some of them are even aginst rent credits, just above average rents and a huge option consideration
[angry2][angry2][angry2][angry2]How are these poor buggers meant to save enough of a deposit to buy the property on only one year if they are paying so much rent?????
Remember these people CANT SAVE, thats why they would even consider a lease option in the first place.
Seems to me like they are set up for failiure from the begining.
As investors, is it our responsibility to structure the deal so that they may be able to exercise?
Or is the whole idea behind lease options to make money and who cares if the tenants cant buy?
Who is resposible?
We buy properties in Adelaide. Can offer Immediate Cash Settlements, No Real Estate Agents Required
[email protected]
phone 0412 437 582Hi Dr X,
Not sure which guru/s you are talking about (no need to say) but I’d assume that to remain in business for the long term you would want your clients to be able to buy the property. To constantly set them up for failure would eventually end up seeing your business fail I’d imagine. Not to mention the possibility of appearing on one of the current affairs TV shows for all the wrong reasons!
I’m guessing that your question about the ethics of it is because you want to be fair to your clients – you strike me as this sort of person.
I don’t think you need to take responsibility for their success or failure to ultimatly buy the property as long as it was a fair and ethical deal to begin with. In my opinion it is the investor’s responsibility to take into account each clients individual circumstances and then structure the deal so that the client has as a fair chance of buying the property (this potential for flexibility is one of the things that I find so attractive about lease options).
Setting up deals where there is a win-win outcome is not only fair and ethical but will protect both the reputation and business of the individual investor as well as the reputation of the vendor finance industry as a whole.
It seems to me that any guru who reccomends structuring deals that set clients/tenants up for failure is very unfair and unethical, both the investors they are advising and also to the clients who are subsequently set up for failure.
To answer your final question, I think YOU care if your tenants end up being able to buy and this will be the idea behind the way you structure your deals. All the best with your lease options and I’m sure that your clients will appreciate that you are giving them a genuine opportunity and not just ripping them off to make money from them.
Kind Regards,
Sonja
You must be logged in to reply to this topic. If you don't have an account, you can register here.
