Greg Carron Lease Option Deal


Greg Carron Lease Option Deal

GSGL Home Buyers, LLC. in Wichita, KS
Greg Carron with Gena Carron

I received this lead from another investor whom I have a positive relationship with. He wasn't interested in the area and called me to see if I was interested. I then reached out to the seller and found that his brother was the tenant. I coordinated a time with the tenant to visit the property. I calculated a WMAO and presented it to the seller, not expecting too much as it was pretty low. This was on the 11th of Feb. On the 3rd of March, I received a call from the seller who was ready to accept my bid and I put the property under contract that day. I was initially going to wholesale the property but I changed my strategy. I got the property under contract for such a discount I could afford to hold on to the property for a bit. I was also confident in my strategy change due to the fact I had my buyer already. The brother tenant wanted to the buy the house but didn't have the funds immediately to purchase. He needed about 6 to 8 months to get his financing in order. We agreed on a purchase price of $13,000 which was a fair offer and I didn't have to do any of the repairs during the time of holding. Plus with the option to buy at $13,000 the brother tenant could feel confident in fixing the house for himself with out losing any of his money. We closed on the 28th of March and the brother tenant was now my tenant. This was a win-win-win situation.

Lease Option Details

Property City: Wichita
Property State: KS
Purchase Price: $8,000
Repair Costs $1,000
Holding Costs: $238
Monthly Cash Flow: $262*

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Case Study

How did you find and structure the financing of this deal?

The investor that gave me the lead, also led me to a Credit Union that was willing to provide the financing for this deal.

Provide a summary of the repairs and improvements you made to the property.

The only repairs I did was a termite treatment that cost me approximately $1,000.

How did you find a buyer for the property if you sold it?

The buyer became evident when I initially went to the house to do my assessment for the bid. In talking to the brother tenant I quickly realized that he wanted the house. I turned the conversation to that outcome while inspecting the house. I knew if I could get this property for a discount I could potentially double my money.

What are some of the major lessons learned that you would like to share with other students that they can learn from?

I would like to share a lesson about the negotiation of the property. When I met the seller to put him under agreement, I never mentioned the closing costs. The seller assumed I was paying all, and I assumed we were splitting and the agreement didn't address the closing costs at all. It's important to have that positive discussion in the negotiation or put the closings costs into your agreement. If you have this discussion it prevents any awkward conversations you might have to make after signing and can prevent a seller from getting frustrated. I was able to talk through those conversations and keep the seller from backing out, but I could have done better.

Shout Outs & Testimonials

I would like to give thanks again to my coach Suzanne Lederer, though we haven't talked in a while and I haven't been to the bi-weekly webinars, I still think about Fortune Builders and everything that you have done for me. I am very grateful for having participated in this great organization. More to come!