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Lease Option Benefits for Investors | Blog of Real Return Real Estate

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Lease Option Benefits for Investors

Lease options have tremendous benefits for investors especially in today’s market where real estate transactions are lower and lending is tight. If you are renting a home, it may be a great idea to lease option. Here are some tremendous benefits, I am sure you will consider this as an exit strategy.

  1. Higher rents with option payments – You get monthly rent and a monthly option payment that is non refundable if the buyer doesn’t execute the purchase contract. If the buyer does execute the purchase contract the option payments go towards the purchase.
  2. Down Payment – You also get a down payment that is non refundable if the buyer doesn’t execute the purchase contract. If the buyer does execute the purchase contract the amount goes towards the purchase.
  3. No agent fees – If the investor finds the lease option buyer then there are no agent fees involved. There are agents that do lease options but the fees will not be 6%.
  4. Higher sales price – Lease option buyers do not have as many options as qualified buyers or cash buyers. Therefore they do not have as much bargaining power and the seller can negotiate a strong sales price.
  5. No vacancy issues – Lease option buyers do not move as much as renters, it is very rare for them to move out in fact.
  6. No maintenance responsibility – Sellers can make the lease option buyers responsible for maintenance, make sure to have home insurance and a home warranty to further mitigate maintenance risk.
  7. Different ways to make money – Lease optioning a home you own is not the only way investors can make money with lease options. Consider a lease option service that brings together buyers and sellers for a fee, lease option sandwich, lease option assignment, find sellers that will lease options their home to you then rehab and flip, etc. You can even get fees referring people to credit repair agencies, agents, lenders, property managers, etc.

For more information on Lease Options, check out this helpful guide.

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