The Lease Option

It's not so much that the buyer can buy without getting a mortgage but that at present the buyer cannot qualify for a mortgage.

Going the lease option route typically benefits the seller by letting him get a better price for his house; it benefits the buyer by putting him into a house he will own someday soon.

If buyers live in a LO and make their monthly payments on time most lenders treat their financing as a refi after they've lived there a year and it's easier for them to qualify.

This is also a way for people who do not have enough money for a down payment to lease a home with part of the rent going toward the purchase price when they buy that home later.

I used to do alot of lease options in New Mexico, but haven't done any here in Florida.  In all cases there were huge option $$ upfront and non refundable if the buyer didn't pick up the option at the end of the time period.

I use lease options every month. Working in the pre-foreclosure market has given me the opportunity to assist others that are in pre-foreclosure and have them remain in the home. Instead of having someone take all of their equity or being on the street without a chance to buy another home...or sometimes even rent a decent place. I will do a lease option with them. I purchase their home for a set amount above the payoff to help them get backon their feet and repair their credit(if they have enough equity) then I ease it back to them for one year and give them the option to purchase the home bck from me at th time for a pre determined and agreed upon profit. Normally this amount is still way under the market value and it is easier for them to get a re-fi since they still live on the premises and have been making timely payments. Since you are the owner of the home and have equity, you can also borrow against the property in the meantime to continue to make your money work for you. Just a thought.

LeaseOptions are virtually unheard on in NYC Metro area.  I have read lotsabout it, through various investing materials.  Thought about using it, but didnt think it would work, because the seller/buyer wouldn't understand what I am talking about.

Edward, just like any other real estate transaction most of the items on a standard purchse contract are not understood by the buyers/sellers. That is where you come in. Educate yourself in this field then you can educate them in the process. once you feel comfortable ( remember your first few real estate transactions?) you will be fine. ALOT of money to be made here and you are assisting someone from prevention of foreclosure at times or assisting someone get into a home that otherwise could not.

Eddy,

 I offer and will comtinue to offer 35% referral fees to Realtors.....who re eligible to receive a commission. I understand how that works. I can look at lyself in the mirror just fine.

NOW,   Re:  YOUR BLOG....You asked for info. regarding info. on lease options. I gave you some advice. If you would hve asked for more advice I would have given it to you. Since you have decided to make yourself lok better than me, learn about it on your own. I make quite a bit of money doing lease options here in Az. every month. You could have learned more from someone that is actually being successful working in that field. I wish you luck in obtaining your knowledge.....It just won't be coming from me. Maybe you should stick with doing loans if you do not wish to get into lease options. It is not for everybody.  Anyways, I wish you the best and God Bless.