The “Step By Step Guide to Exit Real Estate at Top Dollar Prices” By Ralph Mark Maupin, Mr. Lease Option

A few years ago, I had over 300 rental properties; I was over-buying more properties than I could manage. Things were out of control. The following is a Lease with Option to Buy Program; I put together to sell most of those rental properties. “This Lease with an Option to Buy Program” resulted in the following:

1. Long term tenants who pay above market rent 2. Tenants who are showing pride in ownership, and making improvements to the property 3. Sales that would not of happened otherwise, at above market prices

Tenants might not necessarily know the meaning of Lease with Option to Buy, but they do know the term, Rent to Own!

RENT TO OWN otherwise know as Lease Options:

This is a tool that you will absolutely want to include in your "toolbox" of investment strategies- especially homeowners in slow moving markets or investors purchasing property for re-sale.

First, let's clear up some "slang" terms often used with these that create confusion: Rent to Own, Lease Option, Lease with Option to Purchase all mean the same thing.

Rent and lease mean the same thing; a lease is simply a rental agreement that is for a set period of time whereas people often refer to month-to-month situations as rentals.

BENEFITS of doing Lease Options-

Let's look at what that you can expect when you offer your property on a Lease with Option to Buy:

More interested tenants More qualified tenants Higher monthly income from your property Higher sales prices Reduced maintenance expenses

1. If you place an ad for your property offering a lease with Option to buy, you can generally expect five times the number of responses to the “Rent to Own” add than you get from a regular "For Rent" ad. More People are looking for an opportunity to own their own home, than just continue to rent.

2. The tenants that you get calls from will be people who are more responsible and serious about taking care of “their future home”.

3. Traditionally, with a lease option, you will receive a monthly payment towards the option fee in addition to the monthly rent, thereby increasing your monthly cash flow.

4. Since you are working with people who often aren't immediately able to purchase a home outright, you are providing them with the opportunity to own property where they couldn't otherwise.

What is an OPTION?

An option is a grant of the right to purchase property, at set price and terms, from the owner of the property. The person who receives the option can (but is not required to) purchase the property during a set period of time agreed to by both parties when they enter the option.

An option is different from an agreement to sell (Purchase Agreement) in that with a Purchase Agreement, the buyer agrees to buy and the seller agrees to sell. Under an option, the seller agrees to sell, but the buyer does not agree to buy, they simply have the option of buying during the option period.

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