The Perfect Time To Consider A Lease Option Part II

When you are buying is there really a perfect time to consider a lease option? nnAs we talked about in part I, there is never a perfect time to consider a lease option.nnHere is an idea on how to get things subject to: with a minor modification on your presentation you might be able to convince people to go ahead and give you the deed instead of just giving you a lease option. This can occur a few different ways. nnThe first way is you can lease a house with an option to purchase. When you do that, you are not getting anything down as far as a binder deposit, because of the fact that the house is only going to rent for X number of dollars and you have got to create a reserve account. You are only going to be able to pay this amount (which may or may not cover your mortgage). You are going to get the tax benefits but in essence what you will need to try to do is find somebody that at some point can get qualified and you can then move them into the house and have a closing at some point. The closing point will be in the future, though you may not get an exact date right away.nnOn the other hand, if you are willing to allow someone to purchase the property from you, subject to the existing mortgage, there is a real strong likelihood you can get quite a bit higher initial down payment. You will then be able to make your mortgage payment as well as possibly give you a positive cash flow and your house is sold. You will not be making the payments, they will be, and your credit is going to remain in good shape and you are basically out of it. You don't have anything to worry about.nnAt some point and time, you will get a notice that your mortgage has been paid off. And realize this; by giving them the negative aspects of doing the lease option and all the positive aspects of obtaining the deed, sets you up for positive changes. As far as getting the deed, it is just much cleaner as far as the transaction. And what you should remember is definitely do not put any money in until you own it. Especially if the particular home you are looking at needs repairs. If that one needs repairs, then you need the deed. Never should you put any of your own money into a house that you don't own. If you have it on a lease option, you don't own it. n