For many a beautiful family, a large yard in a good neighborhood and home ownership are still part of the American Dream. It’s time for this to stop being a dream and become reality. With lending institutions tightening there lending requirements it all but seems impossible for the dream of many to become reality. But there are choices, options and other avenues for a person to pursue. One of those options being Lease Optioning a home.
What is Lease Option? A lease option provides a way for many people to become home owners in today’s market. A lease option allows a person to obtain there piece of the American Dream without having to qualify for traditional lending up front.
Here’s how it works. As a real estate investor with a home to sell your job is to find a potential buyer. Once you have located the potential buyer and they have viewed the property property, you would agree to the purchase terms on the home. The potential buyer would then pay an option fee. This option fee is paid because the potential buyer is asking you the seller to take your property off the market so they may lease the property until they can work out whatever credit issues they may have prior to purchasing. The lease term are agreed upon by both parties. The other terms should be established at this time such as monthly lease payments, purchase price, extensions, penalties and any other issues you or the potential buyer may have.
There are some Pros and Cons to selling a home on lease option terms, let’s review them.
- 1. You can enjoy knowing you have made someones dream of home ownership a reality
- 2. You have someone in your property and you're now making money on your investment.
- 3. It’s easier than dealing with banks
- 4. If the potential buyer has credit issues that prevents them from getting traditional financing this gives them time to work out those issues (in essence you're giving them a new lease on life)
- 1. If for any reason the potential buyer decides not to, or they can’t purchase the home when the lease term is up then you would have to start the process over again with another buyer.
- 2. You discover that the property has major damage due to tenants carelessness.
When looking to sell a home in this manner I suggest knowing who you are doing business with and conducting a complete check to make sure they are the potential buyer who may be able to complete the deal.
For More Information Visit: Lease Option & Seller Finance Homes