If you're looking for 2 of the quickest and easiest ways to jump into real estate without using any of your own cash or credit, this post is for you. Lease-Options (A.K.A. "Rent-to-Own") and "Sandwich" Lease Options are by far my favorite recommendation for beginner wholesale real estate investors, because, when done the way we do them, they do not require risking any of your cash or credit.
Plus, when you do them the way we do, you won't:
So What Is a Lease-Option Anyway?
Example of a Lease-Option Assignment Deal
In this example, you will lock up a property for $100,000. You will then resell the purchase price at a higher amount of say, $103,000. Your "end" tenant-buyer will give you $3,000 so that you can assign the Option rights over to them, so that they will now have the option to buy (or not to buy).
The seller is happy because they get their full asking price of $100,000 and did not have to pay a Realtor commission of $6,000 (or 6%), and they have a better tenant than they would had they simply rented the home.
This strategy will work even if the seller has no equity, and even if you are unable to negotiate a lower purchase price, because buyer (from experience) are typically wiling to pay a premium for their home if:
If you're a Realtor yourself, this a GREAT strategy for you to use when dealing with FSBOs. Instead of representing home owners that want to sell their properties, For Sale By Owner, you can act solely as a Principal in the transaction representing yourself, and instead of charging a commission, you can simply collect your profits from the Option Assignment fees.
Want to Learn How to Assign Contracts for $3,000 to $25,000 ...Without Any Cash, Credit, Risk, or Experience?
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