If you find a great deal Lease Option deal on a property but the monthly rent is higher than you can afford if it goes vacant what do you do?  Do you pass on the deal because you know you can’t afford to pay the rent?  Do you take the deal hoping that it doesn’t go vacant? 

If it’s a great deal you definitely don’t want to pass it up, but at the same time I can almost guarantee you’ll get burned if you get in over your head.  So what do you do?  Find a partner or wholesale the deal.  If you can find a money partner you’ll get to keep more of the end profits.  If that doesn’t work then wholesale the deal to another investor at your local REIA group.  You may not make as much but you’ll still make a nice profit AND you won’t be in the horrible position of having to make rental payments that you can’t afford. 

For more information on how to find partners for your deals see Chapter 16 of my book Making Hard Cash in a Soft Real Estate Market.

This entry was posted on Thursday, December 4th, 2008 at 2:38 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.