Real Estate Articles How to Make Money in Real Estate Investment with Lease Options New: GovHomeUSA - Real Estate Bargains! A lot of people, including a friend of mine, tell me they want to go into real estate to earn some extra income. That really ridiculous. Real estate is generally a capital intensive business. That is, you will need a lot of money to start real estate investment. Nowadays, many gurus and real estate investment websites are almost entirely devoted some investment strategies that actually are not investment strategies at all: lease option. A lease option (also known as lease purchase contract) is a legal document that combines a basic lease contract with an option to purchase contract. The tenant/buyer pays to the landlord/seller a non-refundable option deposit that is applied to the purchase price of the home. The tenant/buyer then pays to the landlord/seller a sum that is typical to the rental amount usually on a monthly basis. Buy And Sell Real Estate From Home. One Of Highest Converting Pages In Industry. A portion of that monthly payment is then applied to the purchase price of the home. During, or at the end of the lease period, the tenant/buyer has exclusive right to but the home under the terms to which both parties have previously agreed. Based on my experience, lease option is not a profit strategy. It is merely a financing structure which is only applicable to some rare situations like a need to do a reverse exchange. In fact, about 90% to 95% of lease optionees will find that they are no more qualified to buy the home they are lease optioning at the end of the option period than they were at the beginning. Consequently, the option expires and they are left with absolutely nothing. Real Estate Books for Buyers and Realtors The Land Buyers Guidebook will save buyers headaches, heartaches, and dollars. Getting Clients will supercharge a real estate career by teaching niche creation and smart marketing. Fortunately, I have just found that we can buy, sell, and invest in real estate safer and easier with lease purchase contract. Most real estate investors don't know that if you control a home --rather than own it-- you can make even bigger profits at lightning speed, with almost no money out of pocket, and no headaches. I mean, you have total and complete control over every single aspect of the home, but your name is not on the deed. A lease contract puts you in immediate control of a home as far as occupancy is concerned. When you throw an option to purchase contract into the mix, you now have an exclusive right to buy the home at a later specified time for a specific amount of money. The home essentially belongs to you unless you decide not to buy it. Tip! You The Investor Can Control The Value. Another aspect of real estate investment is that unlike any other investment, this investment is controlled by the investor. Say you find Bonnie and negotiate the control of her home with a lease to purchase contract. Let's say that Bonnie agrees to lease to purchase her home to you on the following terms: Down payment: $1,700 (first months rent plus $1,000 option deposit) Rent: $700 per month Rent credit: $250 per month Term: 1 year Sales price: $75,000 Real Estate Development Made Easy. If You Could Develop Real Estate Succesfully - How Often Would You Do It. Since you know the value and appeal of the lease to purchase contract to buyers, you raise your sales price and monthly payment accordingly. You place an ad in local newspaper which reads: "Rent-to-Own. No Qualifying! $3,800 down, $800 per month." Clyde the Buyer --who can't qualify for a mortgage for one reason or another-- calls you and inquires about your terms, which are: Real Estate Clipart. Real Estate Specific Graphics For Use Both On And Off The Net. Down payment: $3,800 (first months rent plus $3,000 option deposit) Rent: $800 per month Rent credit: $100 per month Term: 1 year Sales price: $89,000 You will make exactly $2,100 upfront, $1,100 in monthly rental payments, and $13,800 in back end net profit for a total net profit of $17,000 in just twelve months. Imagine doing just one of these deals per month! You've gone out and controlled a home for a short period of time with minimum cash out of pocket. You did your homework and got a good deal on the home. You sub-leased your lease to purchase agreement with Bonnie to Clyde for a $17,000 profit. Your only risk through the entire deal was that it might take you a week or two to find a quality tenant/buyer. Well, I've got good news for you. When someone sees an advertisement for a lease to purchase deal in the newspaper, they are on it like white on rice. Because you're offering financing terms that no bank or lender in the world can touch with a ten foot pole. Tip! Foreclosures - while highly lucrative and one of the top income producing methods of real estate investing, the time and knowledge required to actively pursue such deals is becoming more difficult all the time. Do two to five of these deals each and every month because they are so quick, easy and profitable. And, by the way, if you choose, you can assign (sell) your option to a third party or another real estate investor. It's still worth $14,900 in one year. You could pocket your upfront profit of $2,100 and sell your option for at least a couple thousand dollars or more. Get Rich Buying Real Estate At 30-50% Discounts! Buy Probate Properties At Deep Discounts, With Much Less Competition. -- Heres The Proof. Nofie Iman is a full-time investor. He has been researching investment strategies since 1998 and make his own living from his investment. For more information, please take a look at his lease options strategies.