Lease Option - What are Real Estate Lease Options?

dmovid01 2011-04-14

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http://www.REIClub.com - Lease Options Are a Great Way to Invest in Real Estate. Watch This Video to Learn What a Lease Option and When It Makes Sense to Lease Properties With an Option to Buy.

1. What is a Lease Option:

* A "lease option" is really two separate but related agreements: a "lease agreement" and an "option agreement".

2. Terms:

* rent credits
* option consideration
* sandwich lease
* assignment
* sublease

3. Why lease options?
Seller
* Move property faster
* Good way to sell when market is down
* Pass small repairs onto buyer
* Tenant Buyer

Buyer
* Appreciation
* Repair Credit
* Little cash upfront
* Not Obligated to buy
* Hard time qualifying for loans
* No taxes, less liability

Investor
* 12 months with the right to renew annually 3-5 years
* Not locked in
* Multiple ways to profit
* Participate in market appreciation

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