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3 Reasons Why Lease Options are Our Primary Real Estate Investment Selling Strategy

Thursday, January 31st, 2008

3 Reasons Why Lease Options are Our Primary Exit Strategy as a Real Estate Investor1. Down Payment – We require a nonrefundable down payment from each one of our tenant buyers. If we have to end up evicting the tenant, the down payment usually covers the vacancy and the repairs needed to get the property back in marketable condition.

2. Ownership Mindset – A tenant who has plans to buy a property rather than just rent will inevitably treat the property better. Tenants will even improve the property during their leasing period before they buy it.

3. Sell For Top Dollar – “Purchase price to be determined by appraisal at the time of purchase.” That is the clause that we put in each of our lease option agreements. We are able to sell property for a future appraised value and without a realtor.

If your tenant buyer buys the property, it’s time to celebrate. You just sold a property for full market value. If your tenant buyer moves out, lease option the property all over again and reap the benefits. We have found that lease options are the most profitable way to hold and sell property.

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  • http://mustknowinvesting.com/2008/07/01/10-great-ways-to-find-lease-option-tenant-buyers-real-estate-investment-selling-strategies/ 10 Great Ways to Find Lease Option Tenant Buyers : Real Estate Investment Selling Strategies

    [...] 3 Reasons Why Lease Options are Our Primary Real Estate Investment Selling Strategy [...]

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    Who's Behind Must Know Investing?

    Patrick Riddle:
    Patrick grew up in Lexington, South Carolina. Went to Clemson University for several years studying civil engineering and wound up doing real estate investing in Charleston, SC.
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