VIDEO 3.1-

What Is A Lease Option?-

VIDEO 3.1-

What Is A Lease Option?-

In today’s video I’m going to explain …

What a Lease Option

investment is …

Another name

used for Lease Option

is Rent to Own …

I have been doing Lease Options for

over 7 years …

And have transacted over 100 deals …

A Lease Option transaction can be completed in many

ways …

I’ll show you the way I do it after

years of trial and error …

A Lease Option is where someone

Leases a property and has an Option to

buy it ..

There are 2 parties involved. An owner / seller and a tenant /

buyer.

owner tenant

seller buyer

RENT

SALE

There are several

contracts that need to be executed …

owner tenant

seller buyer

RENT

SALE

Lease Agreement

Option Agreement

The tenant rents/leases the property for 1 or

more years …

The tenant has an option to purchase the property during

the time they are renting …

The tenant accumulates their

down payment through an Option

Payment and credits …

RENT

$1,800 Rent$1,500 Cost

$300 x 36 Creditsowner tenant

seller buyerSALE

Lease Agreement

Option Agreement

$10K Option Consideration

$10,000 Option$10,800 ($300 x 36) Credits$20,800 Down Payment

Tenant Down Payment Savings

The owner makes money through the

price difference and the

mortgage pay down …

RENTowner tenant

seller buyerSALE

Lease Agreement

Option Agreement $330K Future$300K Current

$330,000 Future Price$300,000 Current Value$ 30,000 Profit From Price

$240,000 Current Mortgage$220,000 Future Mortgage$ 20,000 Profit From Mortgage

$30,000 Profit From Price$20,000 Profit From Mortgage$50,000 Total Profit

Owner Profit

Stay tuned for Video #2 where I I’ll Talk About How To Finance Your

Lease Option Properties