Lease Option Real Estate Investing: Advantages and Disadvantages from hatil's blog

One creative way to begin with buying real-estate is to utilize a lease option. The biggest advantageous asset of using lease options to buy real-estate is --control. This technique of investing, basically provides investor the best to possess -- take control of -- and make money from a property without owning it.

A real-estate lease option contract is a combination of two documents.

The lease part of the contract is where the owner agrees to let you lease their property, while you pay them rent for a stated amount of time. During the lease period, the owner can not enhance the rent, rent it to other people, or sell the property to anyone else.

The choice part of the contract represents the best you bought to get the property in the foreseeable future, for a specific price. If you decide to exercise your option to get, the owner has to offer it to you at the negotiated price. rreal estate agent in denham court

The choice part of the contract obligates the vendor to offer to you during the possibility period -- but it doesn't obligate one to buy. You are only obligated to produce rental payments as agreed during the lease period.

When the lease option contract is written and structured properly, it can offer tremendous benefits and advantages to the investor. If the lease option includes the "directly to sub-lease",

the investor can generate a positive cash flow by renting the property to a tenant for the duration of his lease, or lease option the property to a tenant-buyer for positive cash flow and future profits. If the lease option includes a "right of assignment" the investor could assign the contract to another buyer for an instant profit.