Lease options have benefits to buyers, sellers and investors. Buyers, for instance, can realize their dream of owning a home, and lease options can be a win-win for all involved. Investors can take control of properties for little to no out of pocket money. Here are 6 creative ways you can profit from lease options.
- Charge fee to connect buyer and seller – Many buyers cannot get bank financing and many sellers cannot sell or rent and a lease options is a perfect solution. Find sellers who will lease option their home, then market the property and bring in a lease option buyer. Charge a fee for creating this win-win situation.
- Sandwich lease option – Lease option a home from a seller, then lease option it with better terms to someone else and you keep the difference. You can get more down payment, higher option price, higher purchase price, etc.
- Lease Option assignment – Lease option a home from a seller, then assign the lease option contract to another buyer for a fee.
- Take control with a lease option, rehab then flip – Lease option a home from a seller, rehab then flip the property.
- Round Robin Auction – I marketed 2 properties for lease option using just the cross streets. The response was overwhelming. You can easily hold a one day open house, get bids then do a round robin auction to bid up the purchase price and terms. Just make sure it is still a win-win, the value must appraise for the buyer to execute the purchase contract.
- Referral fees – You can even get fees referring people to credit repair agencies, agents, lenders, property managers, etc.
If you are an active investor and have not considered lease options as a way to make money, you may want to. Remember to focus on a particular strategy and areas and become a master. Best of luck to all you investors!