Real Estate Leasing Guide

Lease Purchase Agreement – Best for Real Estate Investing

Posted on August 31, 2011

Lease purchase agreement is today one of the best ways to deal in real estate. This makes your investment easier and affordable. If you do not have much idea about it, look further and know how it can be useful for you, when you are planning for real estate investment.

Lease purchase agreement or lease option is basically a contract done for a piece of land or property. This contract is done between the buyer and seller for a fixed period of time, after which buyer may gain full rights and ownership of the property. Buyers also have the option to not buy the property and forfeit down payment.

Why to opt for lease purchase option

If you are a buyer, lease purchase agreement can be quite beneficial for you. This is actually because you do not need to buy the property at present. This is also a best option for you if you want to purchase property only for the investment purposes. You can just get in contract with the seller and in case if you find the property is not worth getting after few years, you can leave the deal.

The only loss you face is the down payments and monthly payments which are often fixed by buyer and seller before. This is therefore quite beneficial for you if the property prices went down your expected value. As you can never predict the market conditions, lease option can be the best solution for you.

Not only for buyers, but this is also beneficial for sellers willing to sell their homes. With the help of this option, seller can sell their property even in the tough economic conditions. This is not a loss even if in case buyer does not want to take property after fixed time. In this case seller had already made some profit by down payments and monthly payments received by a buyer.

Today many people want to own a house. But due to their financial and personal problems this becomes tough for them. Lease option can work best for them. With this easy lease purchase agreement you can actually get your own home to live, even when you do not have enough credit or full down payment to pay. In all, lease option is best for both, buyers and sellers. This is a win-win situation for both. This is completely risk free and useful when you want to invest in property.

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Lease Option – To Make Property Dealing Easy for Landlords and Tenants

Posted on August 27, 2011

Property dealing is a task that needs much care. This is really important so as to avoid any losses involved. There are many options that are available for you when you are dealing in property or real estate. These options make your investment easier and affordable. Even when people do not have enough money to purchase a property, these options can be used to own a property.

Lease option or lease purchase agreement is one of the most important and beneficial options for tenants and landlords. This is in general a contract done between the two parties for fixed time interval. During this time tenant use a property as on rent. And after this time tenant may buy or leave a property by paying fixed amount of money. According to the agreement or contract tenant has full right to purchase a property he is using after the time expired. Lease option is thus also known as rent to own agreement.

According to the lease option landlord cannot force the tenant to buy a property after fixed time. This is beneficial for both the parties as it does not obligate either of them in any case. In case if tenant find that a property has gained market value, he can purchase a property but in case prices lowers down he may leave a deal. This all seems to be more beneficial for tenant. Although lease option is quite beneficial for buyers, it is slightly expensive for them. While getting into lease purchase agreement tenants have to pay slightly higher rent than the market value.

Advantages and disadvantages of lease option for landlords

Lease option is also beneficial for landlord in many ways. This is a win-win situation for them whether tenant buy a property or not. Landlord can get fixed amount as a down payment (non refundable) while making a contract. Generally this amount is fixed by both the interested parties. Also landlord gets monthly rent on their property, which he is renting to the interested buyer. So in case if buyer does not purchase the property at the end, there is no loss for landlord.

The main disadvantage for landlord in this case is, if the buyer does not purchase a property, it will remain in their hands and they will have to find another interested buyer for it. Also as the market trend and prices are volatile, there is possibility that buyer renegotiate the prices and may skip the deal just due to the prices.

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Selling Your House – Easy With Lease Purchase Agreement

Posted on August 25, 2011

Buying and selling houses is a big business today. People who are engaged in this business are making good money. To sell a house or property during tough economic conditions may be really difficult. Many times you do not get the right amount you are looking for, and many times you do not get the interested buyer for your house. But with some basic strategies and tips you can easily sell your house at profitable rates. Here are some tips for you.

  1. Complete all your documents that are essential to sell your house legally. This should be done before hand so that your buyer will be rest assured about all the legal paper works.
  2. Decide about your sales price, after comparing some of the recently sold houses in your area. Offer lowest possible prices so that you sell your house quickly.
  3. Hire an agent for selling your house. Offer them the commission of about 2-3% or a flat sale fee. This will help you get fast buyer for your home.
  4. Offer some attractive incentives to your buyers. Include something like a car, boat, a truck, that you already own or may have used. This can be attractive for your customer.
  5. Advertise your houses in local newspapers, online classifieds, local cable channel, etc. Add something attractive like Zero Down Payments, Below Market Costs, Etc.

Lease Purchase Agreement to attract more buyers

Lease Purchase Agreement is one of the best ways by which you can attract more buyers for your houses or property you are selling. Most of the people who are dealing in real estate business make use of lease options. This can be profitable for both buyers and sellers.

In general, lease purchase agreement is a contract made between two parties according to which buyer can use a property or house for a fixed period of time without paying full amount for a property. This is advantageous for buyers as he/ she has full rights to purchase this property after the closing time period. Or in case if they do not want to buy this property, they can skip the deal.

You must be thinking how this can be profitable for the seller. Seller may get down payment from the interested parties which is non-refundable (even in case buyer rejects the offer). Also seller can get monthly installments from the buyers as a rent. This all is done legally and according to rules of the state government. A contract is signed up by both the parties and thus proves to be beneficial for both during property dealing.

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