Lease Options: Turning Renters to Partners
Advantages and Disadvantages of a Lease Option to Buyer.
Advantages:
A part of the rent is sometimes used as a down payment. Little cash is necessary initially unlike a direct purchase.
Property value may have increased buy the time the lease ends thus there are chances for huge profit.
Get to check the property before deciding to buy it.
Disadvantages
They tend to lose the lease option fee if they forfeit the agreement.
They may end up paying far more than the current value of the property due to a shift in the property trends.
Advantages of a Lease Option to a Seller:
Ability to sell the house when the market is dull.
They can sell the house at a higher price than its current value.
They get a larger monthly payment than got for a normal lease.
If the agreement is forfeited they get to retain a sizeable option fee.
Tenants take good care of the property as they have a vested interest in it.
While signing a lease option agreement many things will be negotiated such as the price of the property, rent, if a portion of the rent will be used as a down payment, option considerations, repairs, closing costs etc. make sure the property is inspected for termites and other pest before signing the agreement. It is better to consult an experienced attorney to help you understand the agreement and to make sure there are no hidden clauses. Be sure you take an informed decision before signing the lease option as you may lose a lot of money if you are not able to go through with the agreement. It is better to get even the tiniest detail in writing as a precautionary measure.
There are firms that offer services and products greatly simplifying the task of running and managing a business.
Related Tags: small business, business
Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.
Business Owners all across the country are joining "The Community of Small Business Owners" to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences. Your Article Search Directory : Find in Articles
Recent articles in this category:
- Equipment Leasing- Benefits And Pitfalls
Talk of business growth and profits, the two most essential elements that come into picture are equi - Buy A Car Or Lease A Car?
It's the classic dilemma that faces every auto-consumer out there: Pay cash upfront or forgo the own - Essential Information For Equipment Leasing And Finance
Are you planning for to get equipment finance for your business?This article presents essential info - The History Of Roops Mill
The Spa at Roop's Mill is the only full service private day spa in Carroll County. It is located in - Lease Agreement Forms: Is Your Rental Lease Agreement Airtight?
Lease agreement forms are the heart and soul of every tenancy - They decide the rules of your lease - Leasing Retail Space - Location Facilities And Future Development
Parking Research whether the retail space you are considering has adequate parking. Consider both th - Live In The Lap Of Luxury With Luxury Car Leasing
Many businesses and corporate persons opt for car leasing and used car leasing when deciding on an a - Is It Advisable To Consider Sale-leaseback Financing?
Many business owners and financial managers are often faced with the consideration of utilizing a sa - Equipment Leasing - Information About How To Use It For Funding Resources For Your Firm
If you're interested in equipment leasing agreements then it should not be tough to source an applic - Your Most Important Negotiation
No single element has to be more right than your rent. Getting locked into an expensive lease straps
Most viewed articles in this category:
- Commerce Michigan Real Estate: Buy A Home On A Lease Option And Stop Wasting Money On Rent
Many Commerce Michigan real estate owners and wanna be homeowners are facing real problems. The num - Fractional Ownership And Flexible Renting - Second Homes With A Social Conscience
Many people who consider buying a second home (or vacation home) face a dilemma. Even if you can a - How To Qualify For An Equipment Lease
Unless you are a large corporation, you will have to personally guarantee your lease and your credit - Mastering the Art of Lease or Rental Agreement
Before mastering the art of lease or rental agreement, one has to understand the basics of it. A lea - Using A European Lease To Purchase A Boat
If there is a single concept which has revolutionized the car industry in recent years, it is the id - Investing In Las Vegas
Las Vegas is a famous tourist spot. It is all the more famous and popular for legalized gambling in - Finding an Office Space in Manhattan
Finding an office space in Manhattan seems like a very hard task, and as everything else in the real - What To Do If Your Tenant Goes Into Rent Arrears
Although you might have some great tenants in your property, there is no way to predict whether or n - Learn About The Lease with Option to Purchase agreement for Michigan
A lease with option to purchase agreement for Michigan is becoming widely sought after as slack hous - The Buy To Let Property Gold Pot
After a fairly lack lustre time over the last 20 years or so, the UK Buy To Let market has really ta