| Using lease options to sell a house can be a really | | | | 4. Application form: When working with your |
| simple way to sell your property to a person who | | | | buyers, I follow one simple rule, trust but verify. |
| can't qualify for traditional lending. But let's take a | | | | Verify everything that the buyer puts in the |
| look at the basics, what's a lease option? | | | | application, and if they lie on the paperwork, let |
| A lease option is a simple agreement in which the | | | | them go quickly! |
| buyer has a right to buy a property at an agreed | | | | Now let's look at the advantages and |
| upon price in the future (the option part) and | | | | disadvantages of using Lease Options: |
| leases the home in the mean time. | | | | Advantages: |
| There are some basic steps that you should look | | | | - Price is usually not even discussed |
| at when you use this strategy to sell your house. | | | | - Huge buyer pool |
| | | | - Buyers who put up healthy option deposits |
| 1. Advertisement: This is the most important part | | | | usually pay their rent on time, so they don't |
| of the whole project. If the world doesn't know | | | | forfeit their option deposit |
| you are a flexible seller, no one will call. Some key | | | | - It is the occupant's responsibility to make repairs |
| words to include Lease Option, Rent to Own, No | | | | and take care of the normal maintenance to the |
| Banks Needed. One thing I have seen people miss | | | | property |
| is their ad is a phone number. To eliminate time | | | | Disadvantages: |
| wasters you may want to have a recorded | | | | - If your buyer fails to pay you, you will be in |
| message with property basics and directions to | | | | eviction court. |
| the house and have a different number there for | | | | - If the property increases dramatically in value, |
| prospect to call you. | | | | you will lose that increase since you have already |
| 2. Screening: This is critical, without prescreening a | | | | agreed upon a price. |
| candidate; you may end up in eviction court | | | | - While it is the buyer's responsibilities to maintain |
| pretty quick. Take a good look at their income; | | | | the house, some just don't do it, and you may |
| call all references, the size of the option deposit | | | | have a small mess on your hands to fix up if the |
| (down payment), and their credit history. | | | | buyer leaves. |
| 3. Pre-qualify your buyer: This step is usually | | | | In summary, using lease options can be a great |
| neglected by new investors. You should work with | | | | tool to move a property, there are always up |
| a mortgage broker or a loan officer so you get a | | | | sides as well as down sides, like any other |
| realistic view of the person's chances of obtaining | | | | business strategy, take a moment and look at |
| a loan at the end of your agreement. | | | | both sides before making a commitment. |