Lease Option Coaching FAQ

When it comes to lease option coaching FAQ the sellers and end buyers have different concerns. You, as the principle (investor) in the deal not only have your own questions but also need to be able to answer the questions for your sellers and buyers. These FAQ should be of interest to everyone (investors, sellers, and buyers).

Lease Option FAQ for Sellers

Q: Why would I choose to do a lease option instead of outright selling the house for cash?

 

A: That depends on your circumstances but this definitely offers you (as the seller) more options. First, while the national market is currently a seller’s market, it isn’t that way everywhere. If yours is a slower market, the lease option opens your market to many more potential buyers. Same thing if your market is highly active. Another good reason is some sellers would like to collect a monthly rent for a year or more and still have a highly motivated buyer in the not too distant future. If you would like to discuss your particular circumstances, please contact my staff or myself at wendypatton.com/contact/.

 

Q: The lease option seems like a complicated process. Where do I start?

 

A: Start by deciding the terms you want to offer the buyer. Decide how long you want the purchase option to be available. Most common is 18 months to 2 years but it can be longer. Then decide how much to charge for a nonrefundable purchase option fee. Typically, it’s between 1% and 3% of the purchase price. Check your local market to see if a standard exists. You also want to begin considering what maintenance responsibilities you want the tenant to assume that go beyond a traditional lease.

 

Q: What’s the next step in a lease option?

 

A: As the seller, you have several options to consider. Even before you have a buyer interested in the lease option, you should create a draft of the purchase option agreement. You want a win-win agreement, which means the buyer will have some say in the final contract. However, a draft will go a long way towards helping the buyer understand how the process works. I always recommend that you have a real estate attorney knowledgeable in lease options review your contracts. This is particularly important with your first several deals and after any change in regulations.

 

For investors, I encourage you to take full advantage of these additional lease option coaching FAQ and personal lease option coaching as well as the additional resources I’ve included at the end of this article.

Lease Option FAQ for Buyers

Q: Finding a lease option purchase home seems difficult, where do I start?

 

A: Finding a lease option purchase starts with a search for available houses. Begin your search by asking a real estate agent to review the MLS. Also, look at your local craigslist and other local periodic publications with a real estate section. You can also find any house for sale to make a lease option purchase offer.

 

Q: When deciding to accept a lease option purchase agreement, how do I know if I’m getting a fair deal?

 

A: You should always have a real estate attorney review any contract before signing. Just as importantly, you can counter offer any lease option purchase agreement to include terms that you prefer. The lease option purchase agreement is a very flexible contract that should be written to suit both the buyer and the seller.

 

Q: What is my biggest risk?

 

A: Qualifying for a loan to complete the purchase is the biggest difficulty most buyers face with a lease purchase agreement. Carefully consider if it’s reasonably possible for you to fix your credit rating and come up with the down payment within the option time period. If not, ask for more time. Also, a lease option agreement can include a provision to automatically extend the option period if agreed credit improvement is being made. Credit counseling is another option.

 

These lease option coaching FAQ demonstrate the many possibilities for investors, buyers, and sellers willing to think outside the box. These are only a few of the many possible questions you may have. To learn more, you’ll want to read this other useful information that I offer to you free. Please take advantage of it today.

 

By Wendy Patton

 

For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.

 

If you found this information useful, please visit again soon at wendypatton.com.

 

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

 

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

How to Find Rent to Own Properties

Based on my decades of real estate investing experience, I’m firmly convinced that lease options are the least risky but highly profitable niche for investors. Something else I’ve come to firmly believe is that you and I can learn for each other to stay on the cutting edge of the ever-evolving real estate market. Learning how to find rent to own properties is the cornerstone of the lease option investing business. This article is only the tip of the iceberg of information I share with readers at wendypatton.com.

Whom is lease option investing suited for? Well, any investor. However, beginning investors that are cash poor find it particularly appealing. As does the experienced investor that has maxed out his or her ability to obtain new financing. Also, every investor in between.

Step 1 – How to Find Rent to Own Properties

As soon as you have a nuts and bolts understanding of lease option investing, your first action is finding investment properties with a high profit potential as a lease to own. Notice that I said “investment properties”. I specifically didn’t say find properties “own” or “buy”. Real estate investing is about “controlling” as many properties as you can. It is NOT about “owning” as many properties as you can. This is why the sandwich lease option is ideal.

 

The key wisdom of how to find rent to own properties means taking control of a house with a lease option. You don’t own it, no one can sue you for it, no one can put a lien against it, this is low risk investing. You pay a small “option fee” for control rather than a hefty down payment. That makes it low cost. What you are looking for is a low risk/low cost investment property.

Once you control the property, you find an end buyer wanting a lease to own purchase arrangement. The sandwich lease option puts you in the middle as the meat in the sandwich. The meat is the best part where you can profit three times. You charge a higher lease option fee. You charge a higher rent from the end buyer than you pay to the seller. And you charge a higher sales price from the end buyer than you pay based on the original lease option. Those are the nuts and bolts of how to find rent to own properties.

How to Find Rent to Own Properties – Targeting Prospective Sellers

You are not in the same real estate market as other investors or first time buyers. There are plenty of lease option sellers out there when you know who to target. Among the many opportunities, your best includes people that are willing to both sell a house and/or rent it out. These are people needing to quickly generate cash from the property they own. A lease option generates instant cash for them in the form of the option fee as soon as they sign the agreement. You can even hand them cold cash right at that moment. It then pays a passive income to them in the form of your monthly rent check.

 

 

 

One of the strong benefits of the sandwich lease options is the ability to write flexible agreements that meet everyone’s needs. Win-win-win scenarios when the seller, you as the investor, and the end buyer all come away with what you want. How to find rent to own properties often involves another highly likely prospect – the tired or retiring landlord. These are people that no longer want to manage their rental property. What you are offering these people is the same quick cash with the option fee, a passive monthly retirement income, and a retirement nest egg when the end buyer completes the purchase.

At its most basic, finding rent to own properties is about finding a house owner that answers “Yes” to these two questions:

 

  1. “Are you interested in renting your property on a long term lease for between 2 to 4 years?”
  2. “Are you be interested in selling the property to me at some point during the same 2 to 4 years?”

 

Real estate investing does not need to be about owning as much property as possible. It should be about controlling as much property as possible for the least amount of money and risk. That makes the Sandwich Lease Option the most attractive investing method I know of. You can take control of the property for a couple of hundred dollars.

By Wendy Patton

For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.

 

If you found this information useful, please visit again soon at wendypatton.com.

 

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

 

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

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