Last week I mentioned the importance of consistent marketing to find your deals but it’s also important to know how to properly make offers to get the sellers to say yes.  In rapidly appreciating markets sellers are going to have higher expectations.  It’s easier to meet their expectations if you can get more creative on the terms.  For example, if a seller is fixated on getting a certain price you can most likely give it to them in a rapidly appreciating market, but in return get the seller to agree to give you more time for the option period, or monthly option credits. 

Keep thinking creatively as you try to structure your deals in ways that make them win-win for you and the seller. 

For more information on how to negotiate deals and come up with flexible solutions on the terms of the deals see Chapter 6 of my book Investing in Real Estate with Lease Options and Subject-To Deals. 

If home values are dropping in your market you can still do Lease Options and make money.  Cash flow and long option periods in this type of market is key.  You must make sure your deals cash flow as this will be an important source for your profits.  Negotiate for longer option periods in this type of market to make sure you have time to get your tenant buyers to close and have time to find alternates if the first tenant buyers don’t exercise the option to purchase. 

And as always, you need to make sure the numbers work even with the value of the home declining. 

For more information on calculating the profitability of a deal see Chapter 5 of my book “Investing in Real Estate with Lease Options and Subject-To Deals.”