As a home owner or investor, the lease option is a preferred technique to ">
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Lease Option Techniques for Buyers and Sellers


As
a home owner or investor, the lease option is a preferred technique to sell
property or home and gain profits. These lease option techniques are offered to
assist both the seller; the buyer; and for the investor, such methods as the
flipping lease and sandwich lease options. There are various lease option
techniques, all easy to customize to the individual specific situation.




As a Buyer,
listed here are some lease option techniques:



·      Start
early to secure financing, especially when you have to clean up your credit.
The more time you get the better. Keep in mind that, in most cases you won't
get your cash back if you do not exercise your option.



·      Set
up an escrow account to secure your funds, should the owner not honour your
option? Most owners are reliable, but why take the chance.




·      Include
a clause to allocate the lease to a third party; if you are unable to find
financing, it is possible to assign it to someone who has.




·      Have
the document notarized and register it in public real estate records to
motivate the owner to honour the option.



·      The
right to increase the option deadline gives a cushion should the final closing
day approach before you are ready with the funds.




·      Ensure
you accept contract language to increase your lease option techniques.



·      Consider
bearing the cost of maintenance with the seller, as you both have interest in
putting the property in perfect condition.


As the Seller,
listed here are some lease option techniques you should consider:


Consider
contract terms and conditions such as repairs and maintenance; subletting, one
of the most popular flipping leases option; and increasing the option time
frame.


Consider
owner’s funding as a lease option technique especially when the tenant is
encouraged, but basically may have difficulty obtaining conventional funding.


The
lease option is generally a complex document and includes aspects of both the
lease contract and conventional sales. Consider a real estate attorney to help
you out.








Require
an option fee from the tenant. Demanding even few thousand or a few hundred
gleans out those potential buyers who are less motivated to exercise the
option.




Flipping lease options
usually consist of the investor finding another buyer to exercise the option
prior to the time the option is due and flips the property.




Or
probably consider constructing a
sandwich lease
. The investor sublets the lease option to someone who
intending buying and when the buyer is set to exercise the option, you do the
same also. You are in between the buyer and seller, hence the term sandwich.
The strategy to applying lease option techniques, especially flipping lease
options is the timing in getting a seller and a buyer.




Lease option techniques to locate a
buyer



Run
adverts and list the property "great fixer-upper" or "rent to
own" if the property or home is in need of development. Get a buyer that
has "fixer-upper" skills.




Lease option techniques to locate a
seller



Read
foreclosure listings and real estate advertisements, in both for rent and for
sale sections especially when you are exercising flipping lease options.




Get
in touch with sellers with old listings. The sellers can be encouraged to
consider lease option techniques that they may not have regarded before.




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