Long-Term Percent On Stock Vs Short-Term Percent On Stock Six Key Terms That Must Be Negotiated in All Lease and Option Agreements and More

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Six Key Terms That Must Be Negotiated in All Lease and Option Agreements and More

In every lease, you must obtain the following six key terms when negotiating lease and option agreements:

1. Two-year lease agreement.

2. Two-year real estate option agreement.

3. Fixed purchase price that is at least 20 percent below the property’s current market value.

4. Rental rate that is at least 10 percent below the property’s fair market rental rate.

5. One-year extension clause in the lease agreement.

6. One-year extension clause in the real estate option agreement.

Require All Lease Payments Be Made to a Licensed Loan-Servicing Company:

As a lessee-optionee, the only way to avoid being a victim in an equity-skimming scam is to require that all lease payments be made directly to a licensed loan servicing company. For example, the loan-servicing company would take the money they receive from you as lease payments and use it to make loan payments directly to the lender. This way, you have verifiable proof that the loan payment is being made, and you are not funding the property owner ‘s equity-skimming scam.

The Best Type of House to Use the Lease and Option Strategy On:

The best type of house to use the lease and option strategy on is a three bedroom, two-bathroom house with an attached garage and fenced-in backyard in a stable, middle-income neighborhood, which is conveniently located near:

1. Medical facilities.

2. Shopping malls.

3. Schools, parks, and playgrounds.

4. Military bases.

5. Office and industrial parks.

The Property Owners Who Are Most Likely to Agree to a Lease and Option Deal:

The types of property owners who are most likely to agree to lease their house with an option to buy are usually:

1. Owners of vacant houses.

2. Owners being relocated out of town by their employer on short notice.

3. Military personnel being transferred on short notice.

4. Absentee owners who reside out of town.

Lease and Option Properties Are Relatively Easy to Market to Potential Buyers:

The best part about using the lease and option strategy is that it is relatively easy to market a single-family house that is under lease and option when you are the tenant residing in the property. The fact is, you do not even have to place a for sale sign on the property. All you have to do is place a well-written ad in your local newspaper that directs interested parties to a telephone number or a web site address. This way, you avoid being pestered by nosy neighbors and people who are just out looking, but not serious buyers.

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