Lease Options are a valuable tool in a real estate market that we are experiencing. With guidelines for bank financing getting tough and tougher, a lease option provides a buyer an opportunity to “lease” until they are in a position to buy. With an “option” to buy, they have the right but not the obligation to purchase the home they are leasing.
For a seller, the lease option will many times allow them to sell their home for more than they otherwise would in “todays” market. Many times the seller will cash flow during the lease term. There can also be possible tax benefits to a seller who does a lease option. It can vary by the situation of the seller.
WARNING!!!
Lease options are a great tool, but both buyers and sellers should seek the guidance of a real estate professional who is proficient in lease options and/or an attorney.
I have done over 100 lease options in my career and I work with an attorney to help draft good paperwork for all parties. Do NOT get burned on a lease option, I can help you!