Leasing Real Estate The Right Way
Buying property and renting it out has been a common practice for some time in the real estate industry. It can be a great way to make money from the real estate market while taking advantage of various property. This is exactly why leasing real estate is so popular today.
One of the many reasons leasing real estate is so popular is because of the possibility of creating a no down-payment or a low down-payment when purchasing a home. As you work directly with the seller of the home, you can negotiate a deal between you and the seller. While every seller may not be as flexible, you may be able to work with no banks, credit checks or qualifying at all.
While these types of deals are a little harder to find, they are worth your time. Many of these deals can result in no down-payment if you can offer the seller something they desire. By offering to pay maximum dollar before repairs, you can entice the seller to offer you better terms.
If you are considering selling your property, you first want to do it by leasing real estate. If the buyer insists on having an option within the lease contract, you can write this option on a separate contract. A good term for a lease agreement is anywhere from 24-36 months. If the renter moves out before the lease agreement is up, the option is void.
You do want to ensure that the contract has some type of clarification as to the sales price. You want to price the property according to the market during the time of the sale. This way if the renter decides they want to purchase the home, they have the option if you are willing to sell.
If when leasing real estate the agreement is fulfilled as stated in your contract, you can offer the leaser the chance to own the property. They will have to qualify with a bank and get the whole sales price paid off. Just make sure you remind the buyer that the sales price is based on what the price is at the present time and not what it was when they initially started their lease.
Leasing real estate prior to selling your home can be a great way to make some extra money until you find a legitimate offer. If you lease the right way, you can profit greatly and take advantage of the property you currently own.
Peter Vekselman- Real Estate Coach
www.coachingbypeter.com
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Peter, if you are talking about a Lease Option here, the Buyer has the choice to exercise the Option not the seller. The seller gave up their right to rescind the offer when the Lease was signed. Make sure there is consideration attached to the offer other wise the Option is invalid. You're right, it is a good idea to get the terms down in writing prior to the offer.