Lease Options in a Soft Market
By: Wendy Patton
© 2010. All rights reserved.
I am amazed when markets turn soft the number of would-be real estate investors shrink. The common misconception people have is it’s impossible to make money in down real estate markets. I try very hard to get people to understand that is just NOT TRUE. I co-authored a book titled Making Hard Cash in a Soft Real Estate Market, with Justin Ryan. In this book we address why down markets are so GREAT and how to make big money in them. For this article I’m going to focus on one strategy for making money in a down market – Lease Options.
As you know, I’ve been doing Lease Options for about 20 years now. I’ve seen down markets, up markets and everything in between. Having survived all kinds of markets I can tell you I LOVE doing Lease Options in down markets. Why is that? Because there are SO MANY deals just waiting for me.
If you’ve invested in strong markets you know the competition to find deals can be fierce. Investors are fighting each other for the deals and ultimately some of them start making bad deals just to do any deals at all. In a down market the motivated sellers are plentiful. In my home state of Michigan right now, one of the most depressed markets in the country, I could go into a neighborhood and throw a stone in any direction and probably hit half a dozen motivated sellers.
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