A few things that Jeff Adams Residential Investing with a Lease and Purchase

A few things that Jeff Adams Residential Investing with a Lease and Purchase One of the most resourceful ways to invest in residential real estate business is to do a lease and purchase. The motive a lease is so effective, is because it give a win-win situation for both the seller and the buyer. For the owner of land, it provides a possible buyer and a tenant that will be keen to take care of the home. For the buyer, it provide the right to purchase the home for a fixed price, and time to save cash and improve their credit. 

The owner and the purchaser enter into a contract whereby the possible buyer agrees to lease the home for a set amount of time. At the end of the lease, the buyer then has the choice of buying the home for the price agreed upon in the contract. The buyer pays an option fee up front. 

If the buyer chooses to buy the residence at the end of the lease, he can apply the alternative fee and any other money saved toward the down payment.

For the owner, the lease purchase offers several different ways to make money from the home: 

1.The goal is to buy the home for 10-20% below market value.

2.The monthly rent you collect will go beyond your mortgage payment. 

3.You can correct off mortgage interest and other fixed cost on your taxes. 

4.You pay down the standard on your mortgage and build fairness in the house.

The price of the home will be thankful.

If the possible buyer decides not to buy, you keep the choice fee. 

This is just a basic outline of how a lease and purchase works and the opportunity it present. It is still a real estate investment strategy that is unknown by many and discuss by too few.