Lease Option

Some investors prefer to lease a property and get an option to buy the property. Many people call this buying on a Lease Option. When we use a lease with an option as an exit strategy we often call that selling on a Lease Option.

When you buy on a Lease Option and then immediately sell on a Lease Option, many investors refer to this as using a Sandwich Lease Option. Really it is just two leases and two options.

I personally believe there is a difference between a Lease Option and a Rent To Own, although many Real Estate Investors use the terms interchangeably. For a better understanding of why I believe there is a difference, you may want to read my article Its A Rent-To-Own, Not A Lease Option.

Using a Lease Option is often used as an exit strategy when buying houses Subject To. It can be used as a tool and is considered to be one of the Solutions To Negative Cash Flow.

Evicting Tenant Buyers

Sometimes when a Tenant Buyer fails to comply with the terms of a Lease, we will need to Evict them. I strongly recommend hiring an Eviction Attorney to handle Evictions especially with Tenant Buyers due to the complexity of these types of transactions.

References

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