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Art Valentine(LBT 45) Category: Need Advice
Current Grade: A
Total Views: 608
Member Comments: 5
Posted on: 05/17/2008
Posted by: Art Valentine(LBT 45)
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Increase Profits with Lease Options

If you are a beginner or an experienced investor, there is a tool that you will absolutely want to include in your "toolbox" of investment strategies the LEASE WITH OPTION TO BUY.

It doesn't matter whether your investment is "buy and hold" or "find and sell", you must arrange for exit strategies from your properties to control your cash flow and liquidity.

You can reap many benefits with a Lease with Option to buy program:

  • Significantly higher income and longer term tenants.
  • Committed Tenants who take pride in ownership, by making improvements to the property
  • Creating Sales that could not of happened otherwise, at much higher market prices

Intriguing?

 A lease option allows the Investor to provide the tenants an opportunity to own that is otherwise unavailable, so You can generally expect five times the number of responses on a lease with Option to buy than a regular "For Rent" ad.

Once in your property, they are tenants who are taking pride in ownership and are often making improvements to the property!

And people looking to buy with a lease option are generally willing to pay a slightly higher sales price, often 15% higher, due to seller softer sales terms.

In addition, you receive a monthly payment towards the option fee (the fee you are being paid to grant the option) in addition to the monthly rent, thereby increasing your monthly cash flow.

 

Current Grade: A
Category: Need Advice
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JohnCorey
Ambassador
Posted By: JohnCorey on 05/18/2008
Barb & Brian,

Pick up a copy of Wendy Patton's book on Lease Options. Amazon has it and some of the larger book stores will also have the book.

The first link will take you to Amazon. The second link will goto Wendy's site.

Investing in Real Estate with Lease Options and Subject To Deals
Wendy's story and more background info

The best course I have ever seen is from Barney Zick. He died but you might be able to pick up a copy of his materials.

John Corey
www.CheleseaPrivateEquity.com/blog
 
bbates

Posted By: bbates on 05/17/2008

Art,

I am purchasing my first SFH (others have been duplexes) and I am thinking about doing the lease option, but need help in the legalities of it. If you could provide me with some more information, it would be very valuable.

Barb

 
Brian Lucier
Ambassador
Posted By: Brian Lucier on 05/17/2008
LPO is the WAY 2 GO! So what is a good lease source for doing these deals? Where can we find a good LPO contract?

Brian Lucier