Rental & Lease Options
Using A Lease Option To Your Advantage As A Real Estate Investor
Written by Judson Voss   

As the sub-prime lending mess is unfolding currently here in the United States, people are loosing their homes to foreclosure at record levels. Where are all these people going to live? The quick answer is that they will most likely become renters. However, a couple years down the road when the market has adjusted and interest rates drop again, many will look to purchase another home to live in. And, one of the best ways they can do it is through a lease option purchase.

A lease option purchase is one where you as the property owner find a high-quality, long-term tenant who is interested in the right to purchase your home down the road in a couple years. Maybe today the tenant is strapped for cash, has bad credit, etc... but in just a couple years they will be able to qualify for traditional financing. In this case when they want to buy, lease option is a good option for them to consider.

When you set up your lease option purchase contract it is essential that you believe that the tenant will be able to obtain the necessary financing in the time specified in the contract. Morally, you should not lease option to someone who you do not think will ever actually purchase the home. While you may make some money on the deal, you will only be hurting their lives and not helping them out at all.

In a lease option purchase, you can stipulate that the tenant is responsible for any repairs and changes to the property during the time they live there, in exchange for a higher credit each month towards their down payment on your property. This removes you from being the "landlord" and places you in a position where each month you simply have to cash their check as a mortgage holder would. And, at the same time, you are giving someone a chance to own a home in the near future which they simply cannot purchase at the present time.

If you are in a lease option deal and the tenant is unable to obtain financing at the end of the contract and moves out, you retain full ownership of your property and owe them nothing. This places you with a choice of doing another lease option, putting the property for sale, or simply renting it out. What you ultimately choose to do should be up to you and what the market shows you to do at the time.

Isn't it time you learned how to capitalize on one of the best markets for real estate investing that this country has ever seen? With the recent flood of foreclosures now is the time to learn to invest correctly in real estate from the hosts of the nation's leading show on real estate investing, Judson and Lynn Voss. Visit http://www.yourrealestatefortunes.com and learn for free, the no-hype truth about choosing the right real estate investing strategy to start making you money, today.

 
Becoming a Landlord in a Down Real Estate Market
Written by Judson Voss   

As the price of property drops in most of the U.S. and homes are foreclosed on at record numbers, this is a prime time to invest in some real estate to rent out. After the market has recovered down the road, then you can likely sell the property for a profit. However, as you know, renting out property makes you a landlord. And, becoming a landlord requires some commitment and a good understanding of your landlord rights.

While there is no one single "landlord legal guide" for you to consult, the use of a good landlord attorney can be priceless if you will be renting out the investment property you own. Your landlord attorney can work with you to make sure that you clearly understand all of your landlord rights and responsibilities right from the start. They can help to advise you on finding good quality tenants, and they can help you when you have a tenant you have to evict as well.

Becoming a landlord is not for everyone. Many real estate investors want to purchase property and then turn around and sell it for a profit. However, when you become a landlord you own that property for a while and have the potential to make more money from it over time than if you quickly flipped it or sold it wholesale to another real estate investor.

If you think about all of the foreclosures happening today, where will all of those people go to live? The quick answer is that they will become renters and there will be literally millions of them in the market for a home to rent in the next few years. Because of the sheer number of potential future renters, becoming a landlord is looking to be a very attractive option for many people who invest in real estate.

As you might imagine, becoming a landlord can be wrought with calls in the middle of the night and complaining tenants. You can help insulate yourself from some of this by hiring a property management company to handle your rental properties.

You can also insulate yourself by offering some of your properties as least option to buy. When you do a lease option you can have your tenant be responsible for repairs and upkeep to the property which keeps you out of the traditional landlord role and one where you are more of a lender with a mortgage interest in the property.

No matter how you look at it, becoming a landlord today looks like it will be profitable for many years to come.

If you are trying to figure out where you fit into real estate investing then grab a free copy of our CD, Pick Your Future Pick Your Fortune .

 
Being Rich is About More than Money
Written by Judson Voss   
ImageMany people think that being rich is about having enough money to do whatever you want.  However, these same people miss an IMPORTANT POINT. 
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The Fair Lease Purchase the Investors Perfect Hybrid
Written by Andy Heller and Scott Frank   
ImageWe see them all over the roads today.  Growing in popularity, Hybrid vehicles are beginning to offer an enticing option to dependence on foreign oil supplies.  Similarly, the Buy Low, Rent Smart, Sell High lease/purchase model offers investors a Hybrid of the “buy and flip” and “buy and hold” investment models.  
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Rental and Lease Option
Written by Judson Voss   

Long-term wealth.  The late night infomercials tell us how to get rich quick but the really rich people all invest long term in real estate.  That means if we are going to make it long term we need to buy and hold properties.  Long-term holds can take two forms rental property or lease with option to purchase.

Rentals

Everyone has an idea of what the American dream is.  For me?  I have a house that someone else pays down the debt over the years while I am providing for them a comfortable home to live in?  The house appreciates in value while me debt goes down and the IRS gives me a tax break each year for my troubles.  What a great way to make a buck.  Then again there are some downsides to rentals but with the proper knowledge and maybe the right management company it isn't that bad.

Lease Option

Not everyone is able to buy a house today.  Wouldn't it be great to serve that group?  Lease option tenants tend to take better care of a property and are often responsible for the repairs. 

Why do investors invest in lease with option properties?

  • Cash up front today (option payment)
  • Monthly cash flow during the lease
  • Lease option tenants usually take better care of the property
  • Most lease options call for the tenants to make repairs
  • A big pay off at the end when the tenant exercises their option

If you would like to get involved in Lease with Option strategies we do a monthly training class with Andy Heller where he provides detailed real world advice for those interested in building long term wealth while working full-time (link to site with Ask Andy ad)

 


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