Home Leasing Options

One reason I favor leasing options coaching is that these strategies give the most flexibility to complete successful deals. The three basic leasing options are the straight lease purchase option for a house you already own, the sandwich lease option, and cooperative leasing options. Besides these basic strategies, you and the other parties to the deal can write the contracts in almost anyway to create a win-win-win scenario for everyone involved. However, state real estate laws vary from state to state so make sure you understand the laws before deviating too far from the norms.

Lease Options win win

Using Straight Leasing Options to Sell Your Home

Using the straight leasing options to sell a house is my least favorite of the three strategies. Simply put, it has the highest cost and the most risk to you as an investor. This leasing options strategy involves you first taking full ownership of the house. That’s going to require a significant down payment and closing costs.

However, the straight leasing options method could be the right choice if you already own a house and want to sell for top dollar. Often it’s a good choice for landlords wanting to sell a house. He or she can use the lease with an option to purchase with the existing tenants or find other tenants interested in this choice.

Sandwich Leasing Options

The sandwich leasing option is more appropriate for investors because the costs and risks are very low. Here you find a seller willing to sell with a leasing option. You sign a leasing option that you only exercise after you find a potential buyer.

You then put that buyer under your own leasing options contract. You make sure their option fee is higher than the one you pay the seller. You also make sure the monthly rent is more than you are obligated to pay the seller. And finally, you set the selling price to the end buyer higher than what you have to pay the seller.

That keeps all of your money out of the deal and creates three paydays for you. First, when collect the higher option fee, each month when you collect more rent than you pay the seller, and in the end when collect a higher selling price than you owe the seller.

Cooperative Leasing Options

These are also known as wholesale leasing options. This leasing options strategy involves a seller, you, and a wholesale buyer. The way to begin this investing strategy is by building a list of wholesale buyers looking for lease options. Once you have a wholesale buyer list, you begin looking for leasing options opportunities. You then contract with the seller to find a buyer.

Once you have the house under contract, you market to your wholesale buyer list. Typically, a wholesale buyer will take full ownership of the house. They then find a leasing options end buyer and put it under contract. The leasing option is between the wholesale buyer and the end buyer. Your involvement in the deal ends when you sell your contract with the original seller to the wholesale buyer.

Remember, these are only the basic leasing options strategies. There are many variations to each. If you’re interested in learning more about these strategies, please use the information below to contact me.

If you want to work directly with me as your leasing options coach or with any of my other investing models that have proven highly profitable, please join me at www.wendypatton.com/what-is-wendy-pattons-inner-circle.

Besides reading this article about leasing options, you’ll want to read this other useful information that I offer free. Please take advantage of it today.

Rent to Own Homes

Lease Option Coaching 101

Lease Option Coaching

Real Estate Investment

Rent to Own Houses – A Buyer’s Guide

Investment Property Financing Options

Rent to Own is the Way to Go

Several times each week, I make the most current real estate investing information available to readers. This time, it’s about leasing options coaching but the information I provide changes constantly to stay current with the market. Be sure to check back at: www.wendypatton.com. Also, get started learning how to do NO CASH lease options on real estate by picking up a copy of my bestseller book: Investing in Real Estate with Lease Options and Subject-to Deals.

By Wendy Patton

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Rent to Own Homes

Rent to own homes or lease options are one of the best ways to be investing in real estate today (and almost at any time). I’ve been investing in real estate for many years and have stayed with this business model because it works very well.

More Ways of Finding Rent to Own Homes

In my previous blog, I mentioned the best way to find rent to own homes by advertising on craigslist but there are several other ways. You can offer real estate agents full asking price for his or her listings if they will talk to the seller about using the rent to own homes method of selling. Doing the same with landlords trying to rent a property can also be an effective way of gaining control over rent to own homes. wendypatton pic

Paying attention to MLS listings that are about to expire is another proven method. You can contact the seller about the time the listing is about to expire and offer the rent to own homes alternative as a way of selling at the full asking price or maybe even a little more.

If you already have control of houses that you want to sell as rent to own homes, you can list it with a real estate agent or property management company with a two-year lease as long as the tenants they find agree to purchase within the two-year lease. Ultimately, there are multiple ways of maximizing your profit using the rent to own homes method. It’s the major reason I prefer this way of investing in real estate. Most times, it requires almost nothing down, while delivering high profits.

Writing Terms for Rent to Own Homes

It all comes down to writing the terms for rent to own homes. While the real estate laws vary from state to state, it’s mostly universally true that real estate contract terms and conditions can be written in any way that is fair to both the buyer and the seller. That’s key when investing in rent to own homes.

Investing in real estate is a very powerful way of building wealth. The problem is that the traditional way of investing is very expensive. Avoiding buying the entire property is what makes sandwich lease options so attractive. You want to leverage your investing money to control as many properties as you can without outright owning them. You can do exactly that by writing contract terms where you have the right to find  buyers wanting rent to own homes but not obligating yourself pay the seller anything until you have found that buyer.

You then sell to buyers wanting rent to own homes for more than the seller is asking for. You also rent for more than the seller is asking for. For little or no money, that places you in a position to profit from real estate investing with little or no risk. If you are interested in learning more about my no – low risk ways of controlling multiple properties please use my contact information below to get in touch with me.

If you want to work directly with me as your rent to own homes coach or with any of my other investing models that have proven highly profitable, please join me at www.wendypatton.com/what-is-wendy-pattons-inner-circle.

Besides reading this article about rent to own homes, you’ll want to read this other useful information that I offer free. Please take advantage of it today.

Lease Option Coaching 101

Lease Option Coaching

Real Estate Investment

Rent to Own Houses – A Buyer’s Guide

Investment Property Financing Options

Rent to Own is the Way to Go

House Flipping is Steady and Growing

Several times each week, I make the most current real estate investing information available to readers. This time, it’s about rent to own homes coaching but the information I provide changes constantly to stay current with the market. Be sure to check back at: www.wendypatton.com. Also, get started learning how to do NO CASH lease options on real estate by picking up a copy of my bestseller book: Investing in Real Estate with Lease Options and Subject-to Deals.

By Wendy Patton

What did you think of this article? Please leave a comment below.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

Lease Option Coaching 101

It’s no secret that finding lease options sellers is one of the biggest hurdles facing lease option investors. However, for beginners it’s a psychological challenge as much as a challenge in the real world. After studying the training materials and getting your questions answered, finding a lease option seller in the real world is also your first venture into truly making this investing method work for you. Getting started can be intimidating.

Where to Begin Looking for Lease Option Seller

Craigslist is the place to begin looking for potential lease option sellers. I say “potential” because you’re not going to simply find people looking to sell a house on a lease option. At least not very often. Very few people in the real estate business are even aware of lease options. You’re going to need to do a little educating.

My lease option coaching students understand they need to educate potential sellers but still make one crucial mistake when getting started. They find a landlord trying to rent out a vacant house on craigslist. When the landlord says he or she is possibly interested in doing a lease option sale, the beginner jumps right into a technical explanation of how a lease option works. What this does is intimidate the potential seller with too many complications about how the deal works. Since the seller doesn’t understand the deal, he or she comes away from the conversation with a healthy dose of skepticism that this might be a scam.

A Better First Conversation with a Potential Lease Option Seller

How you want to begin the conversation is by explaining to the potential seller that you are a professional investor. That you are thoroughly knowledgeable about this investment method and although it sounds a little complicated it’s really not once you completely understand it. That in fact, it’s a win-win-win scenario for the seller, investor, and buyer. Everyone gets what he or she wants out of the deal. Wendy-Color-White-Back-high-resolution - medium

Let them know that you have buyers and sellers that you are matching up for these deals. That your goal is getting this concept better understood and bringing together people that will benefit from it. Let them know that the end deal will be fully documented in a contract that any party can have reviewed by a real estate attorney. They’ve already expressed an interest in this arrangement, which greatly improves your opportunity to put together a successful deal.

Besides looking on craigslist for landlords trying to fill a vacancy, you want to look for people trying to sell their homes without a realtor being involved – For Sale By Owner. Some FSBO sellers will be interested in what you are offering if their house has been on the market for a while.

One last thought on the subject. Some people think that opening the conversation by letting the potential seller know you are a professional investor is a mistake. They are afraid it will make the seller skeptical of getting into a deal with a middleman. I disagree. I’ve found it’s always much better letting them know up front how you fit in the deal. If they don’t understand how you benefit from the deal, they’ll be wondering why you are doing it. When they figure it out, they’ll feel that they’ve been deceived and probably pull out. Integrity means letting everyone in the deal know everything that is going on from the beginning.

If you want to work directly with me as your lease option coach or with any of my other investing models that have proven highly profitable, please join me at www.wendypatton.com/what-is-wendy-pattons-inner-circle.

Besides reading this article about lease options, you’ll want to read this other useful information that I offer free. Please take advantage of it today.

Lease Option Coaching

Real Estate Investment

Rent to Own Houses – A Buyer’s Guide

Investment Property Financing Options

Rent to Own is the Way to Go

House Flipping is Steady and Growing

Lease to Own Homes

Several times each week, I make the most current real estate investing information available to readers. This time, it’s about lease option coaching but the information I provide changes constantly to stay current with the market. Be sure to check back at: www.wendypatton.com. Also, get started learning how to do NO CASH lease options on real estate by picking up a copy of my bestseller book: Investing in Real Estate with Lease Options and Subject-to Deals.

By Wendy Patton

What did you think of this article? Please leave a comment below.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

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