Website design By BotEap.comEvery coin has two sides when it comes to leasing options. Here are some real estate leasing options tips that balance the coin so it lands on its edge, benefiting both the buyer and the seller.
Website design By BotEap.comA lease option is a lease with an option for the tenant to purchase the property, usually within a period of twelve to twenty-four months. First-time and unqualified buyers view leasing as an ideal financial technique, giving them time to get their financial house in order. Take a look at the following real estate lease option tips for the buyer.
Website design By BotEap.comReal estate lease option benefits and advice for the buyer (tenant):
- Pay little cash up front (certainly much smaller than a typical down payment)
- The monthly rent credit generates the down payment: a forced savings “account”
- Live in the house you intend to buy
Website design By BotEap.comHowever, this convenience is not without cost. The tenant generally pays an option fee plus rental credits (10% to 100% of the rental rate), in addition to the monthly rent. The seller keeps this money if the tenant does not exercise the option.
Website design By BotEap.comWith that said, here are real estate lease option benefits and tips for the seller (landlord):
- Increase monthly cash flow
- Solidify the price well in advance of the sale date – good in a slow market
- Ask tenants to take care of the property they intend to buy
- Receives the option money up front and retains it, in case the tenant doesn’t exercise the option
Website design By BotEap.comIt’s also a great marketing tool for sellers when trying to find buyers for lease options. For example, you contact a corporate relocation office about your property and they recommend a new employee in the area to lease your property. After six months, she gets the new job, wants to buy the property from her, and the conventional lease changes to a lease option. The buyer secures the option to purchase the home and you have a quality tenant (buyer) living in your property.
Website design By BotEap.comLease option contracts can sometimes be complex, and real estate lease option advice suggests that contract language focus on the terms of the contract, rather than simply price. To ensure an amicable close, put everything in writing. Finding buyers for lease options is indeed a time investment and a good buyer in the hand is worth two in the bush.
Website design By BotEap.comIt may be obvious, but real estate leasing options advice encourages sellers to thoroughly research the market to predict property value a year from now. So while you’re trying to find buyers for leasing options, take the time to properly forecast the asking price. Additionally, real estate lease option boards recommend researching your state’s laws to ensure compliance with lease option mechanism regulations.
Website design By BotEap.comFor the seller, the secret is to find leasing option buyers who value the merit of this financing vehicle. How do you find buyers for lease options? Place an ad in the newspaper or contact a corporate relocation office for help finding buyers for lease options. Mingle with mortgage bankers who interact and can help you find buyers for lease options.
Website design By BotEap.comAnother option is to contact real estate investors like us here at Buy-Sell-Michigan-Real-Estate. [http://www.buy-sell-michigan-real-estate.com/rent-to-own-home-in-michigan.html] and have us find you a buyer for your property. We make it very simple for you thanks to our experience. We receive a small allocation fee for our efforts, and that takes the marketing work out of your hands.
Website design By BotEap.comThe Internet is also a great way to find buyers for lease options. The same Internet sites that help sellers help buyers by bridging the gap between two seeking parties. These sites, however, often have hefty fees charged to potential home buyers.
Website design By BotEap.comYou can also join a forum that shares practical advice on real estate leasing options. Information like these real estate leasing options tips and how to find leasing option buyers are available if you look hard enough.
