Making it a Win/Win

As a sophisticated real estate investor you are always looking for creative ways to use a property to make a profit. What if you could make that profit and help someone else at the same time? With a lease purchase with option to buy you can accomplish both by investing in real estate property and investing in people.

When you buy a home and rent it out you win and the people who rent from you win. Many of those people will rent because they can't afford to buy their own home for many different reasons. A great way to make everyone happy is to lease the property to them and give them the option to buy it from you down the road. You may establish the price you will sell for as a fixed amount at the beginning or decide what it will be at the end of the lease. Either way you have tenants who take pride in the property knowing that they will own in down the road. Pride of ownership is a valuable asset to any real estate property.

When you decide to sell it to them there are a few different things to consider. As they won't have money to put against the deal you can take their first year's rent and the mortgage depreciation as their down payment. You must also have a contract in writing with definite terms set out and signed off on. You will make a profit when you sell that home because you are in business. They will be able to own a home that wouldn't have been possible otherwise. Everybody wins.

Rhonda Hoffman

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