Category Archives: Lease Option

We found retail buyers and “sold” them the property using a lease option. The lease option period was for six months. The option fee was $2,500. We agreed on a purchase price of $300,000. Let’s summarize so far. So how did we make any money on this deal? Everything is the same between the “bought” numbers and the “sold” numbers.

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The loan may contain a provision that calls for an acceleration of the loan payoff in the event of a lease option. Include a provision in the lease option that if the buyer does not purchase the property they forfeit the lease deposit as well as the option fee. Add a clause that the buyer makes monthly lease payments that equal or exceed your PITI payment.

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If you agree to lease your property with an option to buy, use a lease option or a combination of a lease, an option, and a purchase contract. This enables you to obtain income from a property that otherwise might cost you money. If the buyers do not exercise the option, you get to keep the option fee. Keep in mind that a buyer can purchase your property at any time within the lease period.

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