What are Lease options

6 Replies

Lease Options is a way of selling a property using two separate contracts (and they must remain separate). 1 - is the typical lease arrangement to live in the property, and 2 is the Option Agreement that gives the owner of the Option Agreement the exclusive right to buy the property within a specific time, for a specific price.  The OA is in no way part of the actual buying of the property.  It is ONLY an agreement that gives the owner of the Option the RIGHT to buy it.  If/when the OA is executed, the third contract is signed...which is the typical Purchase Contract.

@Joe Villeneuve

Is it possible if I get a 100k home with a down payment of 5%-20% and still do the lease option and just have the buyer put down that none refundable payment

For the same or less?

Or do I have to find a seller to start a lease option if he agrees to it?

I’m just trying to find a easier way to start it out, I know there’s no easy way but I’d rather not hassle around for a seller to agree for a lease option

PS I’m kinda new I know most of the basics but I want to know more.

Thank you!!

There are several good books on the subject.  I recommend, "Investing in Real Estate With Lease Options and Subject-To Deals" by Wendy Patton.  

Originally posted by @Scott Harper :

@Joe Villeneuve

Is it possible if I get a 100k home with a down payment of 5%-20% and still do the lease option and just have the buyer put down that none refundable payment

For the same or less?

Or do I have to find a seller to start a lease option if he agrees to it?

I’m just trying to find a easier way to start it out, I know there’s no easy way but I’d rather not hassle around for a seller to agree for a lease option

PS I’m kinda new I know most of the basics but I want to know more.

Thank you!!

"Is it possible if I get a 100k home with a down payment of 5%-20% and still do the lease option and just have the buyer put down that none refundable payment"

I'm sorry, but I read this multiple times, and I can't figure out what you're saying here.  Are you buying a $100k home and wanting to lease/option it to someone else, and have the option consideration that "someone else" pays cover your down payment?  If that's what you're saying here, the answer is yes...but highly unlikely.  You're going to have a very hard time only putting up 5% on your down payment, and also getting someone to put up 20% for the Option Consideration.  The norms would be 20% DP and 5% OC.