how to make money with real estate options_18

_{The fact of the matter is that most real estate investors are woefully undercapitalized}

_{and do not have the deep pockets or cash reserves that are usually needed to}

_{subsidize sublease-option deals. Few serial sublease-option investors are around}

_{because most people go broke supporting their first sublease-option deal! This}

_{lack of operating capital creates a domino effect whenever there is any type of financial}

_{emergency. For example, when a tenant-buyer fails to pay the monthly}

_{sublease payment, the lessee usually has no money to make the lease payment to}

_{the property owner, which forces the owner to initiate eviction proceedings}

_{against the lessee for nonpayment of rent. This in turn forces the lessee to start}

_{the eviction process against the tenant-buyer for failing to pay the rent. And if the}

_{lessee cannot come up with the money to pay the lease payment, the lessee will}

_{end up losing the real estate option, and the only thing he or she will have to show}

_{for their time, effort, and money will be an eviction on his or her record.}

_{Another very good reason I am not a proponent of the sublease-option strategy is}

_{that, for the most part, the only people that sublease-options appeal to are creditchallenged,}

_{would-be homebuyers with a track record of being financially irresponsible.}

_{These are people who lack the income and creditworthiness required to}

_{obtain a mortgage or deed of trust loan in order to finance the purchase of a home.}

_{They are also the same type of people who require constant prodding in order to}

_{get them to take care of the property and pay their rent on time. The real problem}

_{with this class of tenant-buyers is that 9 out of 10 of them will never be able to exercise}

_{their option and actually buy the property. What generally happens in cases}

_{able to obtain financing in order to buy the property. And the sublease-option investor}

_{ends up with nothing to show for all of the time, effort, aggravation, and}

_{money spent on the deal.}