Difference between lease option and owner financing.

[James McCray]

Is it good to find free and clear properties too for lease options so the bank can't close on your note?

[Edward B.]

@James McCray, yes the bank usually has the option to accelerate the loan if an option on the property is sold. No most people who use this strategy are not worried about it because it rarely, if ever, happens and if it did you would most likely be given the chance to just unwind the position. If you are worried about it then yes looking for those unicorns known as distressed sellers with free and clear properties would be best.

One of the primary differences between a lease/option and owner financing is who holds title. For a lease/option it is the seller. With owner financing it is the buyer.