Residential Investing With A Lease purchase

O ne of the most efficient        lease, he can apply the option     ways to invest in               fee and any other money saved      residential real estate is      toward the down payment. If they   to do a lease/purchase. The           choose not to purchase the home,   reason a lease/purchase is so         the owner keeps the option fee.    effective, is because it provides                                        a win-win situation for both the      For the owner, the lease/purchase  seller/landlord and the               offers several different ways to   buyer/tenant. For the owner, it       make money from the home:          provides a potential buyer and a                                         tenant that will be willing to        - The goal is to buy the home for  take care of the home. For the        10-20% below market value.         buyer, it provides the right to                                          purchase the home for a fixed         - The monthly rent you collect     price, and time to save money and     will exceed your mortgage          improve their credit. Here's how      payment.                           it works.                                                                                                      - You can right off mortgage       The owner and the buyer enter         interest and other expenses on     into a contract whereby the           your taxes.                        potential buyer agrees to lease                                          the home for a set amount of          - You pay down the principle on    time. At the end of the lease,        your mortgage and build equity in  the buyer then has the option of      the house.                         buying the home for the price                                            agreed upon in the contract. In       - The price of the home will       order to secure that price, the       appreciate.                        buyer pays an option fee up                                              front. If the buyer chooses to        - If the potential buyer decides   buy the home at the end of the        not to buy, you keep the option    fee.                                  and discussed by too few. For                                            more detailed information, a       This is just a basic outline of       recommended read is "Buy Low,      how a lease/purchase works and        Rent Smart, Sell High" by Scott    the opportunities it presents. It     Frank and Andy Heller.             is still a real estate investment                                     strategy that is unknown by many       About the Author: Michael A. Stazko is a food lover and founder of http://www.buyandsellnorthtexas.com , http://www.bigdallasrealestate.com , and http://www.bigsandiegorealestate.com . Read more articles by: Michael Stazko Article Source: www.iSnare.com