If you listen to my podcasts or read my emails, you know that I’m very much a fan of lease options.
I LOVE this investing strategy actually. 🙂
The reasons are many…
I mean, just check out some of the benefits of lease options over simply owning a rental property…
- controlling the property without owning it
- being able to get into the deal for little or no cash
- choosing nicer houses in nicer neighborhoods
- fewer headaches and hassles
- this strategy working in any market
See, with lease options, because you’re typically dealing with tenants who want to buy the house not just rent it, the tenants will do more to better maintain the property. They’ll take better care of it.
Not to mention the large down payment they dropped on it too.
Lease options are a great way to buy & hold real estate.
BTW, I’ll get nerdy for a sec…
A lease option is when the property owner and tenant agree that at the end of a specified rental period for that property, the renter has the option of buying the property.
Said another way…
As the investor, you’d get a property under a contract, and then basically wholesale that contract to a tenant buyer.
And, think about this, too: Sellers who don’t have equity or aren’t super motivated to sell yet, but don’t want to be a landlord—well, a lease option could be a great alternative for them.
Plus, as far as I’m concerned, lease options fit right into the 3 stages of real estate wealth:
- Cash now
- Cash flow
- Cash later
Lease options are a terrific way to build that real estate wealth. I’m telling you, from personal experience, lease options are awesome!
I encourage you to consider it as an investing strategy.