| Lease Option Techniques | | | | - Include a clause to assign the lease to a third party, if |
| As an investor or home owner, the lease option is a | | | | indeed you cannot find financing, you can assign it to |
| popular method to sell property and gain profits. These | | | | someone who has. |
| lease option techniques are provided to assist both the | | | | - Have the document notarized and record it in public |
| buyer; the seller; and for the investor, such techniques | | | | real estate records to encourage the owner to honor |
| as the sandwich lease and flipping lease options. There | | | | the option. |
| are several lease option techniques, all customizable to | | | | - The right to extend the option deadline gives you a |
| your specific situation. | | | | cushion should the final closing day approach before |
| As the Seller, here are some lease option techniques | | | | you're ready with financing. |
| to consider: | | | | - Consider sharing costs of maintenance with the |
| - Consider owner financing as a lease option technique | | | | seller, since you both have interest in keeping the |
| especially if the tenant is motivated, but simply may | | | | property in pristine condition. |
| have trouble getting conventional funding. | | | | Flipping lease options generally consist of the investor |
| - Require an option fee from the tenant. Requiring | | | | locating another buyer to exercise the option before |
| even few hundred or a few thousand gleans out | | | | the option is due and flips the property. |
| those buyers who are less motivated to exercise the | | | | Or consider constructing a sandwich lease. The |
| option. | | | | investor sublets the lease option to a buyer and when |
| - Consider contract terms such as maintenance and | | | | the buyer is ready to exercise the option, you do the |
| repairs; subletting, one of the popular flipping lease | | | | same simultaneously. You are in the middle of the |
| options; and extending the option deadline. | | | | seller and buyer, hence the term sandwich. The trick to |
| - The lease option can be a complex document and | | | | utilizing lease option techniques, specifically flipping lease |
| combines aspects of both the conventional sales and | | | | options is the timing in locating a seller and a buyer. |
| lease contract. Consider a real estate attorney to | | | | Lease option techniques to find a buyer? |
| assist you. | | | | - Run ads and list the property "rent to own" or "great |
| As a Buyer, here are some lease option techniques: | | | | fixer-upper" if the property is in need of improvement. |
| - Set up an escrow account to protect your funds | | | | - Find a buyer that has "fixer-upper" skills. |
| should the owner not honor your option. Most owners | | | | Lease option techniques to find a seller? |
| are honest, but why take the chance. | | | | - Read foreclosure listings and real estate ads, in both |
| - Start early to secure financing, especially if you need | | | | for sale and for rent sections especially if you are |
| to clean up your credit. The more time you have the | | | | exercising flipping lease options. |
| better. Remember, in most cases you won't get your | | | | - Contact sellers with old listings. The sellers may be |
| money back if you don't exercise your option. | | | | motivated to consider lease option techniques that |
| - Ensure you agree with contract language to | | | | they may not have considered before. |
| maximize your lease option techniques. | | | | |