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.

What You Need to Know About Real Estate

What You Need to Know About Real Estate

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