If you’ve been reading my emails for more than a day, you know that one of my favorite topics to talk about is…
I love them. My favorite strategy.
I was talking recently with a successful investor who also loves lease options. So, I wanted to remind you why lease options are so cool. 🙂
There’s several reasons…
Lease options are cool because they give you a chance to craft deals that can’t be done any other way. They make it easier for sellers who don’t have tons of equity to do a deal and get their problem solved…
Besides, most sellers aren’t going to give you all the equity they have anyway—they’re not willing to share it with you.
And lease options are easier for you – the buyer – because debt load is not an issue.
Plus, lease options make your seller comfortable. How? Because you can offer multiple options, so the seller doesn’t feel boxed in.
Get creative to solve their problem. For example, you can offer the seller 3 choices:
- a cash offer
- 5-year lease option offer
- 10-year lease option offer
With 3 options, you have more room to negotiate with sellers.
And for the investor I mentioned earlier, she also has 3 things she needs in return. If she gets 2 of these 3, she’s good to go:
- getting into the deal with no money out of her pocket
- cash flow: the lower the rent going to the seller to pay the mortgage, the more she can get in rent
- purchase option price — she gets it at .75/.80 cents on the dollar and sells it higher for 100/110 cents on the dollar
I’m telling you, lease options are great in so many ways: you can give the sellers better prices… there’s less competition for that type of lead… they’re easier to negotiate… if a deal does go bad, they’re easier to get out of than other strategies because lease options are more flexible…
It’s control without ownership. Happy day.
These really are win-wins: A contented seller’s problem is solved, which also may mean a little positive word of mouth — that always helps. And then the happy buyer – that’s you – has a solid rental property (usually, nicer homes, too) producing passive income.
If you haven’t considered doing lease options — maybe today is your day to do just that.