Lease with a Purchase Option

Another entry in the realm of creative tactics is to purchase property using the Lease with Purchase option. With this approach, the property remains in the seller's name; however, the prospective buyer will be allowed to move in and rent the subject property.

The primary ingredient of this approach is that the rental lease agreement will contain a limited purchase option clause.

This approach of obtaining a lease with a purchase option is advantageous for home buyers and real estate investors who currently cannot qualify for a sufficient mortgage loan. It is also another variation of the no down payment plan. This article looks at this program in the following areas:

  1. Overview of the "lease with purchase option"
  2. Real estate investing with this approach.

We have also provided a sample Proposal Letter (buyer-to-seller) Reqesting a Purchase Option, along with a sample Purchase Option Addendum for lease agreements, that you can review to further understand how this tactic is used.

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