Advice on Lease Options - Posted by Zoran

Posted by Tom_FL on May 08, 1999 at 18:02:32:

What about the option consideration? Are you supposed to come up with that amount of money up front too? Any input will be appreciated.

Advice on Lease Options - Posted by Zoran

Posted by Zoran on May 08, 1999 at 12:23:57:

I want to start investing in Lease Options,and was wondering on what is the best way I can start

Re: Advice on Lease Options - Posted by Rob FL

Posted by Rob FL on May 08, 1999 at 19:28:33:

I have Joe Kaiser’s “Ultimate Lease Option Strategy” and recommend it highly. Excellent materail.

Re: Advice on Lease Options - Posted by Robert

Posted by Robert on May 08, 1999 at 13:11:21:

First, make sure that the percentage of the monthly lease amount you and the seller agree to goes toward the downpayment needed to buy the property - not the purchase price of the property. Second, make sure you have the right to sublet the property (lease it to someone else). These are the two mainstay points in doing lease options to buy a property with little or no money down.

Lets say you find a property for sale at 50,000 and the owner will consider a lease option. He will take 10% down and carry a note for the balance if you decide to buy it. Problem is, you don’t have the 5,000 (10%) to put down. So you ask him to lease option you the property. You and the seller agree that $100 dollars of the monthly lease payment will be applied to the DOWNPAYMENT of the property. Next the seller and you agree that you may sublet the property. You lease the property to someone else and they make their monthly payments to you and you in turn make the monthly payments to the seller of which $100 goes towards the purchase price. After about 4 years, you will have enough to buy the property without having to pull any money out of your own pocket. But also consider that in 2 years you can buy the property for around $2,500 dollars down of your own money. Hope this helps.