What does it mean to sell on a Lease Option?

A Lease Option is a lease with an option to be able to buy the property.

When I talk about lease options, it usually means that we’re talking about a lease or rental agreement and an option agreement. Often these are separate agreements that reference each other. Some attorneys like to merge these documents together.

For the sake of the Lease Option FAQs, I will be primarily focusing on real estate investor clients buying properties and offering them to Tenant Buyers on Lease Options. This is an investment strategy that can improve returns for real estate investors while adding a valuable service to the marketplace. For these FAQs, this Lease Option strategy is different than acquiring properties on a Lease Option. In that case, a property is acquired by leasing it and there is an option to buy it. That is NOT what I am addressing in these FAQs.

I’ve created some special tools and resources for clients who want to do lease options. For example, I offer clients the ability to create a special search page for their tenant buyers to be able to search properties they’d consider buying from the MLS with me and then offering to buyers on a lease option. Here’s a sample lease option search page. If you decide to work with me to do these types of deals, you’d get your own specific page that uses your analysis numbers for your potential tenant buyers to search for properties on. You’ll also get access to a special control panel for making changes to your page.

Another tool I provide to my clients is my web-based analysis tool for analyzing lease options. You can use this tool on any property in the MLS to analyze it for both buy and hold and doing a lease option.

We also teach a number of classes each year on how to do the lease option investing strategy. You can register for those classes at NCREIG.com.

Lease Option FAQs

Lease Option