A while back I did a podcast episode where I described the details of a lease option deal. But, as I remember, I was driving and looking for directions to my destination, so the information I was trying to share wasn’t as clear as it could have been.
And I’m asked this question a lot by various investors: How does a lease option deal work?
So, I’m back again, and in this episode, I clearly lay out and explain details about how a lease option deal is handled. As most of you know, lease options are, by far, my favorite way to invest in real estate. I like being able to control a property without ever owning it. Also, my favorite position in a lease option is to be in the middle – known as a “sandwich option.”
If the sandwich option doesn’t work out, I turn to the lease option assignment. I also explain this in detail.
Lease options are a winner for both the seller (who was unable to sell the property the conventional way), and for the buyer (who may have damaged credit and can’t get regular financing). And it’s a winner for the investor because it provides cash up front, ongoing cash flow from the tenant, and cash on the backend when the property is actually sold. A real win-win-win deal.
And, check out the URL below for a free download of a contract template—my gift to you. This’ll help you get started in lease options.
Listen and Enjoy:
- Why I love, love, love lease options
- The position I prefer in lease options
- How I negotiate price and terms with potential sellers
- How I arrive at an acceptable price point
- The 3 streams of cash flow in lease options