Lease Options

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redwing
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@redwing
Join Date: 2003
Post Count: 2,733
April 6, 2004 - 9:30 pm
Hi All..
I don’t visit this area very option, however whilst surfing the net, came across thei terminology in several american articles..
What is a Lease-option and how do you benefit ??
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Sibo
Participant
@sibo
Join Date: 2003
Post Count: 126
April 7, 2004 - 12:48 am
Redwing,
Steve outlined them in his book and here is what I can remember:
They are often used with retail property and entail the tenant paying a higher rental to accrue a deposit. After a given term they are given the option of buying the property at a pre-decided price. The owner then chips in the equivalent of the equity that the tenant has built up. If the tenant does not buy the owner keeps all the money paid.
Benefits: Higher rental received and pre-decided price may be well elevated (similar to wraps). If tenant does not buy then all moneys plus property retained.
Costs: By the time the tenant buys the property may infact be worth more than the stipulated price (or less), and the owner must contribute some of the money they have been making from this property.
How does this significantly differ from a wrap – I dunno!
You may want to check this info.
Regards,
Si
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
April 7, 2004 - 2:13 am
It is just a lease with an option to purchase the property. These can be structured many ways, and it could enable you to control property for a small outlay.
Terryw
Discover Home Loans
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Paul Dobson
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@pauldobson
Join Date: 2003
Post Count: 1,196
April 7, 2004 - 12:16 pm
Hi Redwing
Have a look at:
https://www.propertyinvesting.com/strategies/lease-options.html
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
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An alternative way to finance your home.
redwing
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@redwing
Join Date: 2003
Post Count: 2,733
April 10, 2004 - 7:26 pm
Thanks Guys.[thumbsupanim]
Many American sites promoting this type of investor financing for IP’s
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”