Why should YOU learn about Real Estate Options? What is an Option? What is a Lease-Option? What are the benefits? How can you make BIG money with Options on real estate? Here are just a few of the HUGE benefits to using options to acquire property:
- Control without ownership
- Appreciation without risk
- Principal reduction without a loan
- Positive Cash Flow without ownership
- High investment yields with little or no liability
- Tax FREE use of option consideration
So, what is a Lease-Option?
If you combine a Lease with an Option to Buy you get the best of both worlds. You control the property benefits through the lease and you control the value of the property through the option.
Whether you are buying or selling on a Lease-Option (L/O) the term means the same. The LEASE OPTION transaction has two components; a LEASE agreement and an OPTION agreement. If you are buying on a L/O you are entering into an agreement to rent the property for a stated period, at an agreed upon rent, with possibly some maintenance responsibilities. If you are selling on a L/O the same occurs in reverse, but with some different twists. In both buying and selling on a L/O the deed to the property does not pass from the owner/landlord to the tenant-buyer until the tenant-buyer brings the money to the closing table and executes the option portion of the transaction.
So, what is a Real Estate Option?
An Option to buy real estate is the right to buy at some time in the future. You may or may not exercise your right to buy…depending on the market conditions at the time your option matures.
Since real estate options are flexible, low risk, highly leveraged contracts, they are probably the smartest real estate concept in the investor’s arsenal. They carry tax advantages unavailable in other contracts. They can be used in conjunction with Contracts for Deed, Leases, and Buy-Back Guarantees.