Lease to own property investment is a form of property investment where you invest in properties and then structure a lease to own contract with others who, for some or other reason cannot get the financing to purchase their own properties. This form of property investment is a fantastic way to make money while assisting your fellow man and there are many other benefits to these types of contracts as well.
First of all, renters have zero risk in the property, often resulting in that they have little or sometimes no regard for damage done to the property beyond how it compromises their security deposit. Those who have aspirations of someday owning the property themselves are much more inclined to take much better care of the interior and exterior of the home they are renting.
Chances are good that the property value will actually improve during their occupancy regardless of whether they decide to buy the property or not. This also benefits you because these properties are often more in demand and will be leased quicker then the average rental property should the sale of the house fall through.
Normal reasons for sales falling through are work related transfers, divorces, and failure to get financing even with the money escrowed to go towards a down payment. But luckily even if the sale should fall through you can try again and the house isn’t likely to sit empty for any length of time.
The benefits to those leasing from you are various:
Firstly, you will be putting a negotiated and agreed upon amount of each months rent towards their down payment at the end of the previously agreed upon amount of time.
It will assist them to acquire the funds for the down payment without intentionally thinking about it each and every month. This also grants them a little more freedom for making improvements, painting and decorating to taste than your typical rental home.
Another big benefit to those leasing to own is that it gives them a specified amount of time, typically two years, to get their finances in order and work on improving credit, saving money and taking other positive steps towards their aspirations of owning their own home.
They also get the chance to see if they enjoy living in the home they are leasing to own and they have an opportunity to get to know the neighbors, local schools, the local commute, shopping and entertainment and in general the feel of the area they will be living in.
These things are all great knowledge for those leasing to experience and enjoy first hand before making the absolute decision to purchase the property. It also happens to keep money filling your pockets month after month with the excess paid towards the down payment reverting to you if after two years (or the agreed upon time frame) they decide not to purchase the property.
Sometimes it is hard to make the decision to go the lease to own route when it comes to property investment, because you may feel that it is taking advantage of other people, but that is something you’ll have to decide on for yourself as each person will have their own opinion on this matter.
Simple business sense though should be enough to help you see that you are actually helping others and at the same time turning a profit. But quite frankly it is a service that many people wish was available more often than it is as it can be an alternative and relief to those who experiencing a bit of a rough patch but otherwise have always been reliable and disciplined with payments and are, at the core, good people who deserve a break.
If this idea appeals to you and you feel you would like to give it a try, why not reduce your chance of failure or loss by simply trying to implement the following course which will give you tremendous insight and background knowledge. The Property Pro Investment System is a sure fire tried and tested formula for property investment.
WARNING: As always, use the Property Pro Software Program to do the calculations and make sure you understand this form of investment before you implement it - it is not for beginners.
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