{"id":60,"date":"2020-01-16T17:04:00","date_gmt":"2020-01-16T17:04:00","guid":{"rendered":""},"modified":"2023-09-25T19:21:05","modified_gmt":"2023-09-25T19:21:05","slug":"lease-options-seller-financing-part-3","status":"publish","type":"post","link":"http:\/\/mn.arenter.com\/coach2\/2020\/01\/16\/lease-options-seller-financing-part-3\/","title":{"rendered":"Lease Options (Seller Financing Part 3)"},"content":{"rendered":"

My Favorite Strategy is Lease Options!\u00a0\u00a0<\/b><\/u><\/span>
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\n<\/span>Think of Lease Options as the best of both worlds.\u00a0 It is a benefit for everyone involved, seller, investor, and end buyer.\u00a0 They are so versatile and can really be used all over the place.\u00a0 When both buying and selling.\u00a0<\/span>
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\n<\/span>What is a Lease Option?\u00a0<\/u><\/b><\/span>
\nOk, think of this in two pieces, and oftentimes there are two different documents or vehicles\u00a0to effectuate the transaction.\u00a0 There is a Lease and there is an Option.\u00a0 Together, they make up the Lease Option.\u00a0 Often times the Lease document, does not reference the option.\u00a0 It’s just a simple lease, that has payment amount, dates, default terms, and term of the agreement.\u00a0\u00a0<\/span>
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\n<\/span>Then, you have the option.\u00a0 Think of an option like a purchase agreement without any recourse\u00a0if the buyer doesn’t buy.\u00a0 It’s basically an agreement that the seller must sell and the buyer has the opportunity or the “option” to buy the property with terms (within this period of time, and if the buyer follows these terms).\u00a0 One of those terms could then and often times then, references the Lease.\u00a0 Hence the Lease-Option.\u00a0 My other post about Options<\/a> will go into further details on how to structure Options for both parties.\u00a0\u00a0<\/span>
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\n<\/span>Why Do This?<\/span><\/u><\/b>\u00a0<\/span>Why would you finance your buyer?\u00a0 Simple:\u00a0 to sell it.\u00a0<\/span>
\nWhy does the buyer need this?\u00a0 Simple:\u00a0 they can’t qualify for a new loan\u00a0\u00a0<\/span>
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\n<\/span>It benefits both parties.\u00a0 From the seller’s perspective, they get a house sold fast and oftentimes at a premium.\u00a0 You may have a property that won’t sell for some reason\u00a0 Seller financing gives you an advantage compared to the house for sale down the street.\u00a0 Of all the buyers out there, only 35% of them can qualify for a new loan.\u00a0 That leave 65% of other people who want to buy and want to build equity and realize their American Dream, (buy buying a house), but they can’t qualify.\u00a0 These are good people who maybe have had some life event that caused them to have poor credit.\u00a0 Or maybe they work for themselves and don’t have 2 years of W2s to submit to a lender.\u00a0\u00a0<\/span>
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\n<\/span>Speed and higher price.\u00a0 Those are the two benefits\u00a0for the seller.\u00a0 \u00a0The benefits to the buyer are obvious.<\/span>
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My Favorite Strategy is Lease Options!\u00a0\u00a0 Think of Lease Options as the best of both worlds.\u00a0 It is a benefit for everyone involved, seller, investor, and end buyer.\u00a0 They are so versatile and can really be used all over the place.\u00a0 When both buying and selling.\u00a0 What is a Lease Option?\u00a0 Ok, think of this […]<\/p>\n","protected":false},"author":1,"featured_media":416,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pagelayer_contact_templates":[],"_pagelayer_content":"","footnotes":""},"categories":[25,18,23],"tags":[],"class_list":["post-60","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coaching-tips","category-investor-tips","category-real-estate-investing"],"_links":{"self":[{"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/posts\/60","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/comments?post=60"}],"version-history":[{"count":2,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/posts\/60\/revisions"}],"predecessor-version":[{"id":417,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/posts\/60\/revisions\/417"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/media\/416"}],"wp:attachment":[{"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/media?parent=60"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/categories?post=60"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/tags?post=60"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}