If you are an investor and have considered getting into the real estate market, leasing real estate is the answer for you. It is an extremely appealing avenue that many people do not even consider. There are a number of reasons why some of the most successful real estate investors are using the lease option technique today.
The first reason you too should get into leasing real estate is because of appreciation. One of the many advantages of controlling a property using an option is that the buyer retains the right to capture most of the appreciation during the term. As the term extends, you can expect the appreciation to be far greater.
While terms do vary in length, a typical term will last 12 to 24 months long. Even with a moderate amount of property appreciation, you will find that it adds up over time. Every little percentage point of appreciation will make a difference at the end of the day.
The next advantage to leasing real estate is principle pay down. If the option is accompanied by a lease, the possibilities of increased equity build up are far greater. If you apply a small amount of the monthly lease payment to the purchase price of the property, you have a tremendous opportunity to widen the gap between the market value and the loan amount.
One of the most convenient benefits to leasing out is the fact that there is no need to get a new loan. In the residential market, when the optionee begins the purchase process there is no new loan required. The prerequisite of this is working with the right and informed mortgage broker. However, typically this can be accomplished simply through a refinance.
The last benefit you will find with leasing out is that there is no down payment. You have the ability to invest in a home using the lease option technique with no money down. This opens the doors for some tremendous opportunities that you do not want to let slip by.
If you are looking to make money, the real estate industry is the place to be. While there are some tremendous opportunities to take advantage of, leasing real estate is the way to go today. There is no question why some of the most successful real estate investors are profiting greatly off of this technique. And the best part about it is you too can profit from it.
Peter Vekselman -Real Estate Trainer/Coach
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