Lease Options or is it Lease-Options?
Which one is it? Do we need the hyphen or not?
Apart from the apparent confusion about how to write the above, lease options are a pretty powerful strategy to cash out houses at full market value or usually if done right, 5% to 7% or even 10% more than the market value.
It is always surprising to me that real estate investors don't use them as much as they should. Or they are scared or embarrassed to ask for decent to high option payments upfront. I have suggested running ads with a high option payment just to test the waters and see what kind of response comes back, only to be met with a horrified investor looking back at me as if I have lost my mind - “But Mark, nobody will ever buy my house if I ask for $10,000 Option upfront?”.
That is just bull!
Because, at first it is an assumption made by somebody and that has more to do with them and how they look at money.
Secondly, the only way you can truly find out the “sweet spot” on an Option Payment is to ask for a seemingly ridiculous amount and see what happens and what kinds of calls come in.
So I have decided to write the next few posts dissecting some of the lease options deals that I have done this year. One of them is about to close by Tuesday - pretty decent payday. And also why lease options can work well with forming profitable partnerships with other real estate investors.
