in a tenant and I gave the tenant the option to buy it well for more than 120 it was more like 130 and so I sold it to the tenant a few years later so that’s the other way to do it now this would be pretty simple for any of y’all in the room here to ask if you were looking to rent something around here you could say hey I see you got this place for rent um have you ever considered selling it a lot of landlords consider selling their properties for all sorts of reasons and

so what you can do is you could do a lease and then you just have the option to buy it now you don’t have to buy it but you’d have the option to buy it now in this scenario I guess you’re probably thinking well Phil how am I gonna buy it you know a couple years from now well yeah you’d have to get a regular loan that’s kind of the that’s why with lease options we use that more for investing that makes sense because with investing we’re gonna have somebody else

in there and we’re gonna get them to buy it and so the other nice thing about these is there’s no real estate agents involved so we save on the Commission’s so even if the deal doesn’t have a lot of room we can still make a couple of bucks and a little tidbit on this particular deal this was kind of a because dr. Harris had asked me to give you some of the negatives as well as the positives this guy had a loan that had an adjustable rate and that became a problem when it started

to go up and all of a sudden his 800 payment turned into 900 that ended up where I basically broke even with the rent so a little tidbit if you’re gonna agree to start paying payments in the future for somebody make sure it’s a fixed-rate loan because if it’s variable you may wake up one one Thursday morning and realize that you’re no longer making any money on your deal that’s no fun all right so which one of these versions is better will really owner financing


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