Tag Archives: home

Lease Options – Good & Bad

16 May

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It doesn’t matter if you’re a buyer or a seller.  Lease options are both good & bad.

The Good As A Lease Option Buyer – 

  • You can earn your down payment and closing costs by giving the seller/landlord a larger deposit
  • You can get credit each month from the rent you pay that you can also use towards your down or closing costs
  • You can try out the house before you buy it
  • If you decide you don’t like the house or the neighborhood, you don’t have to buy the house
  • The landlord/seller can’t sell to anyone else until you decide you don’t want to buy the house

The Bad As a Lease Option Buyer –

  • You don’t get your deposit back if you don’t buy the house
  • You don’t get your monthly rent credits back either
  • You don’t get the tax write-offs like you do when you buy
  • You can be evicted if you don’t pay because you are still a tenant

The Good As A Landlord/Seller –

  • You get a larger deposit from your tenant buyer
  • You may get a little more rent each month that you only have to credit the the tenant buyer for if they complete the sale
  • You get a tenant who will take much better care of the property because they hope to own it
  • It’s easier to get rid of a bad tenant that it is an owner financed buyer because you can evict them instead of foreclose on them
  • You can sell the house at a retail price instead of competing with the bank owned or short sale properties in the neighborhood

The Bad As A Lease Option Landlord/Seller –

  • The buyer is still just a tenant and you are still a landlord
  • Depending on your arrangement with the tenant, you may still be responsible for the maintenance and upkeep of the house
  • You don’t get all your money at once

Lease optioning a house can be very beneficial for both sides of the deal.  Make sure to do your homework, get it in writing about who takes care of what (utilities, upkeep, repairs, etc.).  Know the risks on both sides.  

Now go lease option a house.

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Where are all the houses for sale?

4 May

This is not unique to Las Vegas, but everyone looks here because we were and I believe still are considered ground zero.  Las Vegas took the biggest nose dive first. What a dubious honor to have.

However, with the government intervention to fix the problem, stopping lenders from robo-signing documents saying they had the paperwork that gave them the right to foreclose, whether they did or not, the foreclosure process came to a grinding halt.  We have lots of sellers, especially here, that have been living in their houses for one, two, or more years without making a payment.  What’s more remarkable is many of them also don’t have a notice of default filed against them. The result is buyers have been actively buying up what is coming on the market which is now about comprised of approximately 30% short sales, 13% bank owned and the rest are properties not in distress.  

What happens next is anyone’s guess.  But with the banks finally realizing they have less problems and make more money agreeing to short sales, chances are that short sales and flipped properties will be dominating our market for the next couple of years.  Banks will finally either offer deals to the current homeowner to either give their deed back and rent from the bank or get cash to move (deed-in-lieu), short sale now and possibly get cash to move, or they will do something that generates the correct paperwork and proceed on the foreclosure. 

So knowing that as of today, there are less than 4300 houses for sale all over Clark County, that includes properties priced from $15,000 to $18 million, if you see the one you want, you better write the best offer you can because if someone is willing to pay $1 more than you, how would you feel if you didn’t get it?