| The realestate lease purchase option -- also called a | | | | Duration - usually a twelve month term wherein the |
| rent to own -- can reap profits for the savvy seller, | | | | buyer/tenant is obligated to purchase the property at |
| especially in a slow housing market. Here are some | | | | the end of the duration. |
| lease option to buy explanations that can give you the | | | | Security deposit - unlike the purchase option fee paid |
| confidence of an expert in this creative financial | | | | upfront, security deposit can still be required and is |
| technique. | | | | refundable, should the buyer/tenant not wreck the |
| To maximize the realestate lease purchase option | | | | place. |
| requires one to take a look at the immediate situation: | | | | Subletting - lease option to buy explanations see this |
| - Is the housing market slowing down in your area? | | | | as a tactic used by buyer/tenants looking to flip the |
| Secure a buyer now at today's market rather than at | | | | property; if you want to keep it simple, don't include this |
| a lower price several months down the road. | | | | in your contract. Keep it between you and the buyer |
| - Has your property sat vacant, trying to find a | | | | tenant. |
| conventional buyer? Offering the realestate lease | | | | Damage to premises - can be covered through the |
| purchase option opens the door to buyer/tenants | | | | security deposit, which still holds the buyer/tenant |
| anxious to move in now. | | | | responsible for damage to your property. |
| - Do you have a qualified buyer/tenant either in your | | | | Maintenance and repairs - make it a win/win for both |
| property or ready to move in? Qualified buyers are | | | | and split the costs for you as the current owner and |
| the ideal candidate to work with. Lease option to buy | | | | for the buyer/tenant as the soon to be new owner. |
| explanations maximize the seller's outcome with | | | | Purchase price - research the market before you set |
| qualified buyer/tenants. | | | | the price and know as a seller, even in a downward |
| - Are you ready to increase monthly cash flow and | | | | trending market, the realestate lease purchase option |
| cover the PITI of your property? Exercising the | | | | is a basic supply and demand dynamic of more buyers |
| realestate lease purchase option will increase monthly | | | | than there are sellers. Get your best price. |
| cash flow through rent credits, which is covered below | | | | Down payment - paid via the rent credits or as a lump |
| in lease option to buy explanations. | | | | sum payment when the purchase is exercised. |
| If you're ready to exercise the realestate lease | | | | Closing date - lease option to buy explanations view |
| purchase option, have a buyer/tenant ready to move | | | | this is the same as for conventional sales contracts |
| in, a contract will be your next step. Lease option to | | | | and a critical date when maximizing the realestate |
| buy explanations assist both the buyer and the seller | | | | lease purchase option. |
| into a win/win situation. | | | | Purchase option deadline - normally within a twelve |
| Payment - most payments involve an option fee paid | | | | month period and obligates the buyer/tenant to the |
| to the seller upfront. Not to be confused with the | | | | closing date at the agreed upon purchase price. |
| security deposit tenants pay to move in. | | | | The realestate lease purchase option can be |
| Option fees - paid upfront to the seller, viewed as a | | | | customized to your individual arrangement. The lease |
| commitment of the buyer/tenant to the realestate | | | | option to buy explanations provide some clarifications |
| lease purchase option. | | | | to elements of the realestate lease purchase option. |
| Rent credits - applied to the final down payment, paid | | | | Real estate investors, like us, can help motivated |
| monthly by the buyer/tenant at a rate higher than the | | | | sellers move their properties on a lease option and |
| market rate to cover your PITI (principle, interest, taxes, | | | | help motivated buyers (even with poor or damaged |
| and insurance). | | | | credit) buy a home on lease option. |