Does anyone know of someone interest in selling on a lease option here in Los Angeles or surrounding area.?

Asked by Servando Ornelas, Granada Hills, CA Thu Jul 19, 2012

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Jeri Creson’s answer
Jeri Creson, Agent, Studio City, CA
Fri Nov 16, 2012
Lease options are possible… generally the trade off is that the seller wants to cut a deal for more than the property is actually worth in today's market. Otherwise, they would just sell it to a fair market value buyer right now and be done with it. Sometimes agreeing to a price a little higher than current market value is an acceptable bargain for a buyer who cannot qualify for a loan now, but has realistic expectations to be in a better position to qualify in the next few years.

There are lots of reasons people prefer to own than to rent… just the freedom to be able to move a wall, paint the kitchen, or invest in the landscaping without worrying that you are throwing your money and efforts down the drain improving someone else's property…I get that. But it is a gamble. - and if the home doesn't appreciate to your pre-negotiated purchase price, you may find yourself unable to get financing for it when you are ready to exercise that option.

Generally, a lease option will include a "premium" payment above and beyond the fair market rent, which can be converted to down payment later on if you exercise the option. Sometimes a seller will carry the paper on the financing if you come up with more down payment during the lease period and exercise the option - especially now, if they can also charge much higher interest rates to you than the going rates (that presumably someone in this position wouldn't be eligible for) Be careful though, the "idea" of a lease option is a very common way for people to get taken advantage of. Never sign a lease option agreement without having a professional, and preferably a real estate attorney look at it first. The language is almost always convoluted, and most people don't fully understand what they are agreeing to when they do it.

Best of luck to you!
0 votes
Simon Darvish, , Los Angeles, CA
Thu Jul 19, 2012
Hi Servando,

There are many Leases with option to buy here in Los Angeles and surrounding areas, and they all can be structured in a way that would be beneficial to you and the owner.

I'm available to answer any other questions you may have about lease options.

Simon Darvish
Audrey Max Group
Tell: 310-466-9595
0 votes
Sang and Son…, Agent, Los Angeles CA 90069, CA
Thu Jul 19, 2012
There are hundreds of lease properties in the L.A. area and many of those sellers are leasing because they don't want to take a big hit on their equity. I believe there are many sellers out there that may be very open to selling on a lease option. Your best chance is to work with an experienced agent to help you search for the right home and to protect your interest in the transaction.
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Thank you.
Flag Thu Jul 19, 2012
Sona Gallatin, Agent, Santa Clarita, CA
Thu Jul 19, 2012
Servado,
What's the benefit of lease option? It sounds good on paper but sellers want to sell and get their money if they come out of the deal with a profit at all these days. With so many short sales and bank owned listing on the market, chances of finding an owner who wants to lease their property to maybe sell it it at the end of the lease seems slim. Especially here in LA. If you do find a homeowner that will work with you, be careful and get every last detail in writing.
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