lease options

16 Replies

Hi, has anyone knows where is ideal place/or site to find lease to buy property?

would those sites " rentbeforeown" with monthly fees are good place to start?

Please advise, thanks,

Not quite sure I understand your question. Are you asking where you can find property that you can buy on a lease option? Probably your best bet is

 You can post ads for lease options and/or look for ads that offer lease options.

It would help to know what you want to do with lease to own properties.

If you were trying to lease to own in then sublease and some obsession with the sandwich I would try to find motivated sellers in general and not try to find ways to own properties in particular

Motivated seller marketing that is for term deals sounds more like

Do you have a problem house? Divorce? Did you inherit a House and need to sell? Do you have no equity?is your agent not getting your house sold for you? Call me and I'll give you an offer 24 hours if it makes sense for both of us

FYI terms deals are created through negotiation with the seller such as subto, lease to own, wrap aItd, installment sale.

There are great lease option deals right now in the Greater Seattle area.  If you are interested in leasing a single family home for up to 5 years and exercising the option to purchase, please call me directly.  I am a Realtor and would love to help you make the connection.


Kathleen Wilcox, Consultant


@Kathleen Wilcox  be really cautious about offering a 5 year lease with option, 

Due on Sale Clause Issues

Here are the exemptions

d) Exemption of specified transfers or dispositions

With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon—

(1) the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property;

(2) the creation of a purchase money security interest for household appliances;

(3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;

(4) the granting of a leasehold interest of three years or less not containing an option to purchase;

(5) a transfer to a relative resulting from the death of a borrower;

(6) a transfer where the spouse or children of the borrower become an owner of the property;

(7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property;

(8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or

(9) any other transfer or disposition described in regulations prescribed by the Federal Home Loan Bank Board.

(e) Rules, regulations, and interpretations; future income bearing loans subject to due-on-sale options

(1) The Federal Home Loan Bank Board, in consultation with the Comptroller of the Currency and the National Credit Union Administration Board, is authorized to issue rules and regulations and to publish interpretations governing the implementation of this section. See

I like Account Closed  answer, however, please be watchful on Craig's list. absolutely check the ownership. There is a lot of easy to believe deals that comes through it and it is scams. 

Be extra, extra careful.

Originally posted by Account Closed:

Not quite sure I understand your question. Are you asking where you can find property that you can buy on a lease option? Probably your best bet is

 You can post ads for lease options and/or look for ads that offer lease options.

Steps to be notified of a new RTO Lease Purchase

1. get gmail

2. set up a google alert

rent to own Atlanta craigslist,for rent atlanta craigslist, etc

Brian, thanks for sharing current lending rules and exceptions. I agree with Morey, that one should be wary of Craigslist ads. 

@Wen Ling Cheng    You have the best of the best here with @Brian Gibbons   and Account Closed (who seems to like salmon...I should post a pic of me with a grouper! WHEE :) ) I have one from last week in Tampa!  

What are you trying to do? control the property? control and assign? buy on a LO?

@Brian Gibbons  

Brian, thanks for posting such great content, much appreciated.

Quick question on:  @Kathleen Wilcox be really cautious about offering a 5 year lease with option,  Due on Sale Clause Issues

When there is an option, the loan can be called due at any time. You'll have 30 days to come up with financing. It seems to me that the same of level of risk exists for a 6mo, 12mo, 24mo, or 5yr L/O. I agree 12mo is the way to go for the lease, but when it comes to the option and DOS, the risk is always there. If there's is a way to minimize that risk I'd love to know!!

This is a public forum @Kevin Francis  and @Kathleen 

@Kathleen Wilcox  

The due on sale clause is been talked about on BiggerPockets for very long time

Above I stated the exceptions as per the Garn St Germain Act of 1982

Every mortgage has a due on sale clause there's been created before I think 1986

It means that the bank has the right to call the loan due, not that it's going to call the loan due

After analyzing the tenant buyer through an RMLO to check the ability to repay and other issues, let's say they need two years, I will start them off with a one-year lease and a one-year option that can be extended.  After the 12 months if they pay the lease on time they get a new lease a new option

@Brian Gibbons Do banks call "due on sale clause" on lease options during the time of say a 12 month lease or only when the tenant-buyer Is ready to purchase? And if so, how can an investor ensure that doesn't happen on their lease option deal? Let me know, thanks!

@Jacob Casarez

Jacob, can your mother not yell at you if you do not take out the garbage?

Sorry but your question is on the same vibe.

Banks do not HAVE to call the loan due.  but they COULD.

Banks want performing assets.  So pay the PIT mortgage bill on time.

Banks want insured assets.  So make sure the insurance is never in default.

Do those 2 things, and have a cooperative owner of original loan that works with you, then the odds are good.

@Jacob Casarez

It is not guaranteed. Many people flirt with the DOS clause with leases, lease options, sub2, wraps, etc.

Only things guaranteed is war and taxes and eventual death.

Real Estate Deal Making (not investing) is about performing your due diligence, executing a strategy, minimizing with the risks, and having a plan B if it goes south.

If the loan gets called, you need to bring in new financing, either have the bank create a loan for you on similar terms, you get a new lender, partner with someone, or get a private lender.

@Brian Gibbons ok, good to know! And about how long would an individual have to bring in new financing if the loan gets called DOS?

it's all negotiating with the bank

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