Real Estate Information

Various Aspects Of The Lease Purchase Business

In a previous article, we wrote why we believe that Lease Purchasing is the perfect home-based business, here we want to briefly touch on some of the actual aspects of operating such a business, the pluses and minuses and why Lease Purchasing represents a win-win situation for the seller, the tenant/buyer and just as importantly, you, as the business owner.

One of your goals in operating a Lease Purchase business is to contract for property that you then move to the tenant/buyer. There are a number of unique strategies that can be employed to reach this end.

You can lease purchase the property and then sub-lease to a tenant/buyer. In this strategy, you are taking on the responsibility for all payments to the seller. However, it also affords you great profit potential. You can collect money up front as option consideration, you receive the positive cash flow and you can make additional money at the end if the option is exercised. For those of you not familiar with the term positive cash flow, this is the difference between what the tenant/buyer pays you and what you pay to the original seller. This is also known as a sandwich lease purchase.

Another unique strategy is called the co-operative assignment. Here, you contract for a property and assign or sell that contract to a tenant/buyer, with the approval of the seller. In other words, the owner/seller has final approval over who goes into the home.

Another way of doing business is the straight assignment. Here, you contract for a property and assign or sell that contract to a tenant/buyer. This method does not require a seller's approval.

You can also take a pure option on a property which allows you to purchase the home at a future date with set terms. This option can then be sold to another investor.

As you can see, there are a number of unique strategies that can be employed in this business. We have touched on just some of them to give you an idea of the type of income Lease Purchasing can generate for you.

After you've gained experience in the business, you can start consulting with sellers and tenant/buyers. There are many reasons you may want to consult with a seller rather than get directly involved in the deal. The property may be to distant to work conveniently, there may not be enough money in it for you to receive what you need, or the seller may prefer to do it him or herself.

When you consult with a seller, you are providing the proper contract, a marketing plan and supporting material. We also provide a period of time for follow-up questions.

You can also consult with tenant/buyers. You may want to do this with those individuals who have limited funds available to get into a rent to own home. There are also occasions where people just prefer to do their own house hunting.

We've really just touched on the various ways to generate income with a Lease Purchase business. Lease Purchasing allows you to develop multiple income streams. By utilizing all of the income generating strategies available to you, you can build a very solid financial base for yourself.

We've covered many of the pluses of Lease Purchasing as a business, but we'd be less than honest not to point out some of the minuses.

If you're the type of individual who has poor attention to detail, this may not be for you. You need to be able to keep good records of whom you spoke to and do business with.

Also, if you're an impatient type and don't like to do "hand holding", again this may not be for you. There are many deals where you will need to be able to walk the participants through and provide constant reinforcement to them.

Although the risk level in this business is minimal, there are some risks involved. You may contract for a property and not move it for example. If you're adverse to any risk, re-think Lease Purchasing as a business for you.

In our opinion, Lease Purchasing provides a truly win-win scenario for all parties. You get to help a seller who has a problem, you provide a nice home in a nice area for the tenant/buyer that they can get into today and buy tomorrow and finally, you are generating a wonderful income for yourself. This is a business that can be operated anywhere there are free property rights.

Believe us when we say that Lease Purchasing is the best business we will ever own. It's that good!

Copyright 2000, DeFiore Enterprises

Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at

Buffalo News

Erie County Real Estate Transactions
Buffalo News
Following are real estate transactions over $5,000 as listed in records of the Erie County clerk's office for the week ending Jan. 19. ALDEN • 13361 Broadway, Lesley A. Jordans; Warren E. Jordans to Elwood-Jordans Agency, $120,000. AMHERST • 2215&2277 ...


Real estate briefly: Huntington Beach apartment complex sells for $90.5 million
Cypress West Partners acquired the property with Virtus Real Estate Capital, a real estate investment fund manager based in Austin, Texas. This marks the first joint venture for the two firms. Terms were not disclosed. The complex is 95 percent leased ...

Wealth Migrate to present blockchain-based global real estate platform at Finovate Middle East
GlobeNewswire (press release)
DUBAI, United Arab Emirates, Feb. 25, 2018 (GLOBE NEWSWIRE) -- Wealth Migrate, the blockchain-based global online real estate platform, has been selected to showcase its newest technology at Finovate Middle East 2018 (Dubai, February 26-27). Finovate ...

and more »

Quad City Times
Real estate transactions $50,000 and over are gathered from city and county public records and are not independently verified. SCOTT COUNTY. Eva Dondanville to Annette L. Clark, 4125 31st St., 002A, Bettendorf, $85,000. Forest Road Estates LLC to ...


Real estate as an investment
Fall River Herald News
Most people own some real estate, and for the most part, those who don't own property still list their desire to own as a part of their financial forecast. Whether it is your primary residence, a second home or an investment property, there are several ...
Can Sunlight Real Estate Investment Trust's (HKG:435) ROE Continue To Surpass The Industry Average?Simply Wall St
Wheeler Real Estate Investment Trust (WHLR) Getting Favorable Media Coverage, Accern ReportsThe Ledger Gazette
Investors Real Estate Trust (IRET) Lifted to “Hold” at Zacks Investment ResearchStockNewsTimes
BZ Weekly
all 194 news articles »


18 Ways New Real Estate Investors Can Succeed In 2018
Successful executives in the real estate industry from Forbes Real Estate Council share firsthand tips & insights. Forbes Real Estate Council ,. Real estate investing, in all regards, has changed over the years. The techniques that worked for an ...

Real estate records, 02/25/18
Lincoln Journal Star
John's Used Green Store LLC to Johnston, Baylor La Von & Betty J Revocable Trust, 670 Garden St. (Bennet), $131,000. Kasper, Gary Estate to Pennsylvania Avenue Properties LLC, 6844 S 89 St., $146,000. Kavanaugh, Michael L & Patricia A to Beck, Jeremy A ...

Arizona Daily Star

Money Manners: How to fairly split savings on real estate commission
Arizona Daily Star
My siblings and I recently inherited a house from our father, a house that my sister's ex-husband wants to buy. He and my sister remain on good terms, and we are happy to sell it to him. Here's why I'm writing: Dad's house was assessed for $550,000 ...

and more »

Nila Infrastructures Limited (NSE:NILA): How Much Growth Is Left In Real Estate?
Simply Wall St
Nila Infrastructures Limited (NSEI:NILA), a IN₨8.45B small-cap, operates in the real estate industry which remains the single largest sector globally, and has continued to play a key role in investor portfolios as an asset class. Real estate assets ...

Helena Independent Record

Real Estate Corner: Do I really need a home inspection?
Helena Independent Record
Buying a home can be one of the most exciting and stressful experiences all at the same time. Today's market conditions can add additional stress to the process. Tighter inventories have increased competition among buyers making it a seller's market ...

Google News

home | site map | Blog |
Portland Oregon Real Estate Listings | real estate investing | real estate in greece | for sale by owner in atlanta | House for sale: Louisville KY
Exchange Links Here | Links page |
© 2006