how to make money with real estate options_17

_{The main reason I am not a fan of the sublease-option strategy that is being}

_{taught today is that it is not financially feasible. In other words, there is just not}

_{enough profit in most sublease-option transactions to make them financially}

_{worthwhile. For example, under a typical sublease-option scenario, a lesseeoptionee}

_{would be lucky to receive from a tenant-buyer a $1,000 option fee and a}

_{monthly sublease payment that is $100 above his or her lease payment. In most}

_{cases, what appears on paper as a $100 a month positive cash f low really is not.}

_{This is because most investors involved in sublease-option transactions never}

_{bother to factor in the amount of time they spend managing property as a business}

_{expense. If they did, they would come to the quick realization that they are}

_{working for minimum wage. I do not know about you, but to me, the prospect}

_{of working for minimum wage, especially as a self-employed real estate investor,}

_{has zero appeal! However, low wages are not the only thing that most subleaseoption}

_{investors have to look forward to. There is also the very distinct possibility}

_{of having to evict a tenant-buyer and pay the lease payments while the}

_{And these out-of-pocket lease payments and other costs that can never be}

_{recouped under a typical sublease-option scenario are the reason subleaseoptions}

_{usually do not make any financial sense. I know a former sublease-option}

_{investor in Richmond, Virginia, who ended up paying over $4,700 in property repairs}

_{after he refused to give his tenant-buyer a six-month extension, and the enraged}

_{tenant totally trashed the place before skipping town. All in all, this}

_{investor claims to have lost $6,300 on his first and last sublease-option deal.}