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Buying Real Estate with Lease Options – Winston Rowe and Associates
Buying real estate with lease options is the fastest and easiest way to complete a real estate transaction regardless of if you are the buyer, seller, or an investor.
By: Winston Rowe and Associates
These transactions are win-win-win, they tend not to be adversarial as most real estate negotiations are. The seller has a buyer/tenant in place with a vested interest in the property. The buyer/tenant is motivated to keep the property in good repair and stay current with payments. Buying real estate with lease options is a win-win-win for all parties.
The investor enters a lease option with the seller with a contract clause allowing him or her to assign the agreement to a third party or enter into a separate agreement with a third party.
The seller begins collecting rent without becoming a landlord and you, as an investor, find an end buyer to collect a larger lease option fee and begin collecting a little more rent than you pay to the original seller. The end buyer (that the investor also does a lease option with) now has a home without the hassles of qualifying for a mortgage along with the ability to purchase soon.
As the investor, you want to work with the buyer/tenant to remove whatever roadblock is temporarily preventing him or her from completing the purchase. By doing this, for the cost of an option fee, you collect a large profit when the house does close.
There are many benefits to all involved in lease options. In fact, too many to cover in a single article or blog. Here, I will cover the benefits for investors. Here's a short list of benefits that come from buying real estate with lease options:
A top sales price from the end buyer.
Positive cash flow.
The largest list of possible end buyers.
Minimum risk because you're not the owner on the title.
Few or no commissions and fees.
No maintenance (the end buyer is responsible)
A large non-refundable option deposit.
Profit when the home sells.
Once you have the lease option in place with the end buyer, don't just sit back waiting for them to pull the trigger on the final purchase. You still have skin in the game as an investor. Stay in touch with them and work with them to repair any credit problems to qualify for a mortgage.
Winston Rowe and Associates prepared this article you can review their website at https://www.winstonrowe.com or give them a call at 248-246-2243
Winston Rowe and Associates