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Lease Options - The Way to Grow Rich While Lenders Drop Like Flies

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Education & Training with Knipe Realty NW

Lease Options - The Way to Grow Rich While Lenders Drop Like Flies


As I reported the past two Fridays in our club meetings, lenders are changing and dropping loan programs and an alarming rate.  I was told by my mortgage broker on August 2nd that some of the lender programs were changing by the hour.  What does this mean for real estate investors?

In Friday's session, August 3, 2007 I talked about the wonderful opportunity investors have in "purchasing" homes via a lease option program.  You can be as creative as you want to be right now and sellers very well may take you up on your offer. 

The problem with lending right now is that mortgage underwriting has resulted in borrowers being turned away in droves.  I read about a Wells Fargo jumbo, 30 year fixed rate loan program in which the rate has gone up to eight percent.  Last week that same loan was 6 7/8. 

As most of you know, I'm a big proponent of lease options.  I've written and spoken about them many times.  I think we are in a wonderful market for buying and controlling property.  Now is the time to seek out lease option "purchases" because you can now enjoy maximum profit   I wouldn't be surprised to learn the next twelve to eighteen months produces some of the very best real estate deals for real estate investors.

Educate yourself on the subject of lease options and get with it.  You don't need much money and you have the potential to do exceedingly well.  If you believe you can't do it, you are correct - you can't.  But if you believe you can, you are also correct.  It's your choice.  What do you choose?

Next Friday I plan on bringing a lesson on building a business plan to accommodate a lease option approach to real estate investing.  The following Friday I will teach the principles and strategies of buying and selling on a lease option. 

For more articles on real estate investing see our website at http://www.oaprei.com/

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Copyright 2007 by Don Loyd

Rebecca Savitski
BSR Real Estate Group - Cary, NC
NC Real Estate Listings
Lease options have been very popular in the Raleigh area for years, the catch is that very few act on their option.
Aug 04, 2007 01:47 AM
Edite Liepina-Lawrence
ERA Tradewind Real Estate - Longmont, CO
The main resistance in our area towards lease options are that people doesn't seem to go through with the purchase at the end of it. What's your experience been like? What terms are the "must" items in this agreement?
Aug 04, 2007 01:54 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer
Lease options are becoming popular too.  Sellers are anxious and want to accept very little option money for long options.  Investors are trying to speculate for two years on other people's dimes.  I am advising my sellers to keep it one year.
Aug 04, 2007 03:31 AM
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida
Don, anytime you can gain a semblence of control on real property you are maintaining the superior position.  Previously, under similar markets I'd make sure I could sell or transfer my option at a future time prior to executing same.  Usually it's a win for all parties rather than the option being left to it's own demise.
Aug 04, 2007 06:22 AM