{"id":13993,"date":"2010-06-23T05:08:54","date_gmt":"2010-06-23T11:08:54","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=13993"},"modified":"2024-02-17T13:27:57","modified_gmt":"2024-02-17T20:27:57","slug":"2010-06-23-why-lease-options-rule","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2010-06-23-why-lease-options-rule","title":{"rendered":"Why Lease Options Rule!!"},"content":{"rendered":"

Lease options, or the concept of rent to own, simply refers to a rental agreement with an option to purchase at a future date.\u00a0 With bank financing tight, not all potential homeowners can secure a loan and fulfill their dream of owning a home.\u00a0 Many people absolutely love lease options as it is a perfect solution.\u00a0 Here are just some of the benefits to sellers and investors.<\/p>\n

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  1. Higher sales price \u2013 <\/strong>Buyers who cannot qualify for loans like FHA loans do not have as many options.\u00a0 Thus they have less leverage and are willing to pay a higher price for a home.<\/li>\n
  2. Higher then market rents \u2013 <\/strong>On top of market rents, there is also a non-refundable monthly option price.\u00a0 If the purchase contract is executed this amount goes towards the purchase price; if not executed, the seller keeps this amount.<\/li>\n
  3. Down Payment \u2013 <\/strong>You also get a down payment that is non-refundable if the buyer doesn\u2019t execute the purchase contract.\u00a0 If the buyer does execute the purchase contract the amount goes towards the purchase.<\/li>\n
  4. No agent commissions \u2013 <\/strong>You do not have to pay agent commissions which are usually 6% of your sales price.<\/li>\n
  5. No vacancy issues \u2013 <\/strong>Lease option buyers are motivated to stay as they will lose their down payment and monthly option money if they move.\u00a0 Therefore they almost always stay.<\/li>\n
  6. No maintenance responsibility \u2013 <\/strong>Sellers make the tenant responsible for maintenance since they will be purchasing and owning the home.<\/li>\n
  7. Creative strategies \u2013 <\/strong>Lease option service, sandwich lease option, lease option assignment and even lease option a property then rehab and flip are all creative strategies to profit from lease options.\u00a0 You can even earn referral fees for credit repair, agents, lenders, etc.<\/li>\n<\/ol>\n

    If you are still looking to focus on a strategy, learn about lease options.\u00a0 They are win-win for all involved and have tremendous advantages for investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Lease options, or the concept of rent to own, simply refers to a rental agreement with an option to purchase at a future date.\u00a0 With bank financing tight, not all […]<\/p>\n","protected":false},"author":387,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7406],"tags":[3180,1554],"class_list":["post-13993","post","type-post","status-publish","format-standard","hentry","category-creative-financing","tag-l2p","tag-lease-option"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/13993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/387"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=13993"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/13993\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=13993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=13993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=13993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}