Have you ever heard the saying the only way to make money in real estate is to buy low and sell high? Well, I have to say that is completely true, but did you know there is more than one way to sell your property and possibly even make more money?
Well, my investors work with me because I find them the deals! The ones that aren’t listed on the MLS and are priced 20-30% below retail (I’ve seen many $100,000 below the zestimate) But, then they either do a few fix ups and flip it immediately if they see another deal coming up quickly or they do a lease-option on the property.
What does a lease option do for you as an investor? First it gives you a down payment to use on your next property and it gives you monthly income that you can use. Second, it helps you make even more on the property by marking up the cost. A person who needs to do a lease option knows they are going to have to pay more than if they used a traditional mortgage or cash.
But, think about it… If you got a $5000 option payment before they even moved in, more than market rent ever month and they decide they can’t do it or don’t qualify at the end of the lease, you get to keep all that money and do it all over again. $10,000 profit and the chance to sell it again at possibly an even higher price, sounds pretty good to me.
If you are interested in learning more about lease options, come join us at one of our Empowered Investor club meetings. Click here to sign up for The Empowered Investor monthly newsletter.
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