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6 Creative Ways to Profit with Lease Options

Ryan Moeller
1 min read

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.

  1. 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.
  2. 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.
  3. Lease Option assignment – Lease option a home from a seller, then assign the lease option contract to another buyer for a fee.
  4. Take control with a lease option, rehab then flip  – Lease option a home from a seller, rehab then flip the property.
  5. 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.
  6. 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!

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.