How did I reduce the risk on my latest lease option deal?


I’m getting ready to head over to my latest deal and put a sign in the front yard and take better pictures. This is a lease option deal in Clifton, VA. And the best part as always? No money down. Also, because of the “terrible” economy I’m always able to negotiate more in my deals these days. When the market was hot, I would do a lease option deal and not pay the seller rent for 60 days. That would give me 60 days to fill the property.

At Least $4,000

Now, on lease options (and with this deal) I’m not paying the sellers any money until I find a tenant/buyer for the property. This ensures that I will make a couple grand up front and won’t have to worry about coming out of pocket for any payments. In this current market I conservatively expect to get $4,000-$7,000 up front in option money.

How To Advertise

Besides the sign in the front yard, I’m using craigslist and ads in the newspaper. As always, the headline I will use and which draws the biggest response is “Rent To Own, No Bank Qual, Bad Credit OK!” I also mention in the ad, “FREE $300” which is the amount of rent credits that I’m giving the person who moves into this property.

Of course I’m going to the property now to take pics, put the sign up and put a lock box on the front door. After this visit, I won’t come to the property again until I’m meeting my new tenants to collect a deposit.

If you aren’t mastering lease options and subject-to in this economy, what’s wrong with you?

Alright. I gotta run. There’s money to be made.

About Author

Jason R. Hanson is the founder of National Real Estate Investor Month and the author of “How to Build a Real Estate Empire”. Jason specializes in purchasing properties “subject-to” and has purchased millions of dollars worth of property using none of his own cash or credit.


  1. With the latest Obama foreclosure legislation, loan modifications are much more realistic, except that people are still inclined to walk away from their home. This is where subject-to/lease option makes serious sense.

    What a great investment strategy. Even here in Orange County California, cash flow property is beginning to appear!

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