Agent2Agent in Bend>Question Details

Andy Stearns, Real Estate Pro in Bend, OR

I am looking for rent to own or lease option buyers. What do think is the best source of referrals?

Asked by Andy Stearns, Bend, OR Wed Jan 30, 2008

My properties are not just for sale. The new buyer does not need to get a loan for 1-2 years. Some buyers need time to improve their credit others need to sell another house before they are willing to get another mortgage.

0 votes Share Flag Agent2Agent in Bend

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You are talking about renting a home that is likely not a good rental property, it does not make good investment sense. You would be better off selling for less and getting your equity out of the property and investing it in a property that does make sense.

If you have a home that you hoped you could sell for $300,000 and if you did you would have $100,000 in equity, but you can't sell it for that amount right now so you lease option it for 2 years hoping that it will appraise for that amount then. You could sell it now for $275,000. You gain $12,500 per year in appreciated value. In order to make this a good investment property it would have to rent for at least $2,000 per month plus whatever option money you agree to. The buyer is paying an equivalent to 8% interest which they might be able to get a loan with an interest rate like that and on top of that if they are waiting for another home to sell then they have an additional payment to make.

If you were to take the $75,000 and put it into a good investment property or stocks you would have made more money. In a lot of cases it would be beneficial to sell for less now and put the money in a CD and it would make as much money and it would be less risky and more liquid.

If this is a home you lived in then you have to worry about capital gains tax after 2 years.

Generally speaking, lease options have few benefits to either buyer or seller in most cases. There are a few situations that it could be beneficial to the seller or the buyer but it is extremely rare that it would be beneficial to both in a single transaction.
0 votes Thank Flag Link Mon Apr 28, 2008
Hello Andy,
I would have to agree that getting your properties listed in the MLS is a good idea. I do have some buyers who are looking for some rent to owns. Can you email me some information on your properties?
Thank you,
Selena McNeill, Broker

Century 21 Gold Country Realty
376 SW Bluff Drive, Suite 8
Bend, OR 97702
541-390-0595 Cell
541-382-3333 Office
1-541-982-2243 Direct Fax
Licensed in the state of Oregon.
0 votes Thank Flag Link Thu Apr 24, 2008
I agree with putting it in the MLS. There are over 2,000 MLS agents and if they are the same as myself , I check it every morning for what is new on the market. I find that newspaper ads are expensive so be careful about pricing. Craigs List is good, also trulia in their Real Estate section. You have FSBO's site and FOR SALE BY you could try. You can try those to see if they will work for you. Buyers are in great demand here(Bend & Redmond) and are looking for a great deal that is why the MLS might be the better way. We can decide if they are good buyers instead of just looking ones. Hopefully this gives you a start in the right direction.
0 votes Thank Flag Link Thu Jan 31, 2008
The MLS is of course the best place for doubt. Some realtors will agree to place Lease options available in their Local MLS Boards.
After that the Local Paper but only if you use a small teaser ad and watch your budget.... Signs are great of course...
Craigs List! Great place to use this and people is Bend use Craigs list just like anywhere else.

But the MLS can generate a ton of leads. The broker(s) just need to work out a program for you to pay them if and when the homes sells.

Good luck with this Andy. Sound slike a good startegy with the Bend Market slowing down.

Hope that helps.

Dirk T Knudsen
Re\Max Hall of Fame
#1 Rated Re\Max Team in Oregon
Web Reference:
0 votes Thank Flag Link Wed Jan 30, 2008
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