We have been discussing some creative investment tools that real estate investors might want to use the next time a property of interest turns up for sale that might help close a deal otherwise not thought worth to pursue.

1. Option to purchase
2. Sweat Equity
3. Lease/purchase
4. Secondary seller-held financing

Lease/Purchase

A long-term lease with an option to purchase is a good way to tie up a property today in anticipation of a future purchase.

EXAMPLE. The buyer (in this case, a church) has concerns that they might need to purchase an adjoining home and acreage to provided additional future parking. The homeowner still occupies the property and has no plans to sell for at least five years. Concerned that the owner might receive an unsolicited offer from someone else during that time, or that the property might appreciate out their budget, the church offers to lease the property with an option to purchase in five years. The lease/purchase agreement is drawn up by the church’s attorney and subsequently approved by the owner’s attorney.

In this case, the church benefits by securing a property at an acceptable price that it might desperately need in the future. The owner benefits from receiving rent money along with the possibility that the church might not excercise its option to purchase when the time comes.

Remember to consider ProAPOD real estate invesment software or real estate investor software whenever you are considering to sell or buy any rental income property. You can tour program screenshots at real estate investing software.

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