Date post: | 09-Jan-2017 |
Category: |
Real Estate |
Upload: | jim-pellerin |
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VIDEO 3.1-
What Is A Lease Option?-
VIDEO 3.1-
What Is A Lease Option?-
In today’s video I’m going to explain …
What a Lease Option
investment is …
Another name
used for Lease Option
is Rent to Own …
I have been doing Lease Options for
over 7 years …
And have transacted over 100 deals …
A Lease Option transaction can be completed in many
ways …
I’ll show you the way I do it after
years of trial and error …
A Lease Option is where someone
Leases a property and has an Option to
buy it ..
There are 2 parties involved. An owner / seller and a tenant /
buyer.
owner tenant
seller buyer
RENT
SALE
There are several
contracts that need to be executed …
owner tenant
seller buyer
RENT
SALE
Lease Agreement
Option Agreement
The tenant rents/leases the property for 1 or
more years …
The tenant has an option to purchase the property during
the time they are renting …
The tenant accumulates their
down payment through an Option
Payment and credits …
RENT
$1,800 Rent$1,500 Cost
$300 x 36 Creditsowner tenant
seller buyerSALE
Lease Agreement
Option Agreement
$10K Option Consideration
$10,000 Option$10,800 ($300 x 36) Credits$20,800 Down Payment
Tenant Down Payment Savings
The owner makes money through the
price difference and the
mortgage pay down …
RENTowner tenant
seller buyerSALE
Lease Agreement
Option Agreement $330K Future$300K Current
$330,000 Future Price$300,000 Current Value$ 30,000 Profit From Price
$240,000 Current Mortgage$220,000 Future Mortgage$ 20,000 Profit From Mortgage
$30,000 Profit From Price$20,000 Profit From Mortgage$50,000 Total Profit
Owner Profit
Stay tuned for Video #2 where I I’ll Talk About How To Finance Your
Lease Option Properties