Lease Option-tenant buyer-rent to own-real estate mistakes

What happens when Lease Option Tenant Buyers don't refinance you out of the house during their Option time frame? Well today, I'm having to take back a house that I should NOT be taking back. My Tenant Buyer did not close during their 3 year Option, and we couldn't agree on a new price based on the market appreciation. So, they consequently decided to move out. They gave me two ways they could leave: 1. Pay them for all the work they did to the property or 2.They could rip out all the work they did and leave. Notice the condition they left the property and further how good they were as tenants.

00:00- Intro
1:03 - I had to take back this house I sold on a lease option
1:53 - What work did this tenant buyer do to the property
3:30 - They built a bar and a porch in the back of the house
4:53 - We sell houses to tenant buyers
5:35 - Let's break down the numbers on this lease option house
7:00 - What happens when lease option buyers don't refinance
8:03 - How do you set a price for lease option tenant buyers
9:10 - There is a hole in the side of the house-Exterior Inspection
10:40 - What repairs do tenant buyers do on lease option deals
12:05 - #him500 Quote that helped me with this deal
12:55 - What do you do when Lease Option tenants move out
13:38 - I made a bad decision that lacked integrity

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[MasumJ]

Thank you for being so honest. It's hard to find these days.

[AMNationMedia]

The transparency, authenticity, and accountability without any posturing or "cap" from Kris has always stood out from other real estate investors /coaches in this space. Thank you for sharing your lesson.

[shea]

You're a good man. You did the best you could, and I think you did act with integrity given the circumstances.

[c.rose]

It takes a strong person to stand in their truth and be transparent for the world to see! Stand strong brother!!!

[CameronHunter]

Dang man this is so real. Need more of this in business and in real estate. Props to you brother 👏

[JimBuysHouses]

Kris, thanks for sharing and being transparent. Often times, we see real estate investors talk about their wins but not about their failures or losses. The good thing here is you can get back up dust yourself off and get back it. I know you look at it as a loss however, every setback is a set up for come back. Let me repeat that !!! every setback is a set up for a comeback. I wouldn't consider it a loss but rather another bump in the road we call life. You have an asset that is worth more than what you paid. I think you will have another renter soon, the house is in decent condition. Keep doing what you are doing !!! JF

[nicknjb]

That was very forthright of you to admit, you did give him their money back. And you tried. It worked it self out

[reeeek]

Much respect
Well it happens, we gotta live and learn from our own mistakes or others 😊

[HeatherSky]

You are such an inspiration not just in business but in life. God bless you, and thank you for your transparency.

[annpowell]

You had every reason to work with those obviously nice renters

[plaibwoy]

Based on this case study definitely smart to put a future appraisal clause on a lease option.

[orlandogarza]

I have no idea why you would be disappointed to take this house back.They did some awesome renovations to this house.I personally would be jumping for joy.Even though its a small house, it would definitely sell for a lot more than what you paid for it.They left it in excellent condition, all it needs now is a for sale sign in the front yard, it will probably sell in about a month.

[missmariamendoza]

Love that you shared this! We all definitely get busy and let time roll by. Lol! Sucks!

[mabelmedina]

The learning process is part of real estate or any other profession as long as you had the right intentions then you shouldn’t feel bad about it. It’s a learning experience and you move on and it will benefit the next buyer you encounter. With experience and knowledge you can always get out of these types of situations. Can’t wait to be an experienced investor I will follow you and your honesty. Thanks Kris for always trying to do the best job you can possibly do! Love your channel

[mountmeron]

❤Thank You for sharing Chris.
It happens to the best of us.

[creallyreal]

Being a person of integrity isn't instant. One has to work at it like anything else of value. Keep working at it, Brother.

The entire situation sounds painful --both for you AND the prospective buyers. I'm glad that you are aware enough of the mental and emotional strain it caused you to seek support. Even in this time of medical advancement and knowledge, many equate therapy and other good mental health practices with weakness. IT'S THE EXACT OPPOSITE. Congratulations on taking good care of yourself.

I look forward to following your "adventures" in real estate investing. It's a real education for me. Thank you, also, for being transparent, informative and clear with sharing your journey, your work, and the ups and downs it entails.

My best to you 👊🏽.

(It occurs to me that your children are learning a fine lesson from you about integrity, handling personal regrets in a positive way, and willingness to adjust and grow in this crazy thing called LIFE. Kudos!)

[bryanpearce]

Kris, you did nothing wrong. Your character is good with me. They had 3 years to get their credit straight enough to finance $73k. That's plenty of time. Those $18k in repairs were probably put on their credit card which further damaged their credit. My question is why did they think they could remove any repairs in the first place? It's your property. At least, wouldn't they have to put it back how they found it?

[emmanuelezenwankwo]

I like the way you presented this whole situation. It’s an opportunity for you to do a better deal…..

[nellielee]

Very good video, you always try to do what's right in the sight of God and tried to make it right so glad you was able to do right by them, We need more people like you.

[ChristyDStarling]

Thanks for all the lessons, Kris. 💜💜💜