Real Estate Forums

Landlordly · 11-18-2008, 05:11 PM

Hey, came across an interesting article about using lease-option agreements to sell properties during the real estate slump:
De-Mystifying the Lease Option Agreement
Has anyone had any experience actually doing this? I'm a landlord with some rental units, so I'm open to it, but any thoughts would be appreciated.
Thanks,
Junior
Landlord Rental & Lease Agreement

agentsranking · 02-25-2009, 07:52 PM

I've been doing lease options deals for years. There is a lot of flexibility in how you can structure them; personally I set them up just like a CD. Purchase price, interest rate, 3-5 year balloon, non-refundable option payment, etc. I set up a lot of Lease Options during the real estate boom so I'm taking a lot of them back in this slow market because nobody wants to exercise at their now inflated contract price.

mrbrian · 02-26-2009, 06:37 AM

I would suggest you check with a real estate attorney in your state to advise you about the positve and negatives before deciding to use lease purchase to sell your properties. Better and much cheaper to pay for one visit to an attorney now than find out you did something incorrectly according to your state's laws. We may have the best intentions, but if we are not in your state, we cannot advise you as well as your attorney since the law differs from state to state.

agentsranking · 02-26-2009, 08:04 PM

Good point regarding checking with an attorney in your state. In theory a Lease Option is a great tool; just make sure you don't buy a generic form from some website. Have a local real estate agent or attorney get you something that is within the laws of your state.

Hollywood Landlord · 07-26-2009, 03:44 PM

Lease-Options are a terrific way to handle properties that aren't moving as quickly on the market. I have done this twice and had great success with both... it was a definite win-win, but this was before the market crash...

As someone stated earlier, you'd definitely want to consult an attorney BEFORE you consider this new venture.

But the flexibility in structuring the deal is fantastic!

Good luck!

San Diego Homes For Sale · 07-27-2009, 11:28 PM

Lease options can be a good way to sell real estate in a slow market. I try to help my clients get a good option payment in advance. Then the rents are typically on the high side. There has to be incentive for the seller not sell the property right away, and the incentive to the seller also puts the lessee on the hook to follow through with the purchase option.