What is a Lease Option?

November 20, 2009 Hans Anderson Real Estate Investing, 4

Lease option is a process when a rental agreement is combined with a purchase or an option contract. The price, length of contract, escrow instructions, rent credit, and other relevant terms are negotiated in advance. A percentage of the tenant/buyers rent is credited to the down payment or the price.

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This kind of transaction can be a win-win-win situation for the buyer, seller and investor.

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