Summary

You think the real estate route is only for the already rich? Then let me fill you in on a personal truth: I bought my first real estate at a time when I could NOT afford to buy (or loan) it! No joke.

The catch? None. I was just lucky I knew about the “Lease to purchase” option.

Now, don’t worry if you do not, because we’re exploring it in detail today.

In today’s episode, I’m teaching you how “Lease to purchase” is a win-win real estate purchase option you can make with a seller when you lack the finances to pay their property’s down payment (for loaning it) or needless to say, the full price (for buying it). You’ll also learn how it provides you with the flexibility to appraise the building over time, and how it can lead to increased value and financial gain for the owner. I’ll also talk about the other similar option you have for real estate buying, called “seller financing” and why it’s a weaker option as compared to lease-to-purchase. It’s an incredibly important topic, so don’t miss out!

Tablecloth Finance, your hub for all things financial, brings you this informative episode. Tune in and take the first step towards buying your first real estate!

“You’re gonna have to really articulate in a very, very clear manner why this is a win-win for both you and the owner, I think this is going to make the difference between receiving a yes or no. If the way you explain it to the owner is, hey, I need time to find money, it’s never going to work, right?”

Listen to “How to Become a Millionaire without Real Cash” on Spreaker.

What we discussed

• (00:56) Getting started in real estate in 2005: How did I manage my big break into the industry despite not being “super-rich”?
• (02:16) The Lease to purchase option discovery: How I discovered the option to buy my first property without paying a hefty downpayment
• (02:37) Lease to purchase: All you need to know about the option!
• (04:46) Sealing your Lease to purchase deal in writing: What’s the right way to document your Lease to purchase agreement?
• (05:21) My first time using the Lease to purchase option: How I bought a $309,000 property and made it into a million-dollar building!
• (07:02) Why the Lease to purchase option is beneficial for the seller as well
• (08:51) How to approach a seller with the Lease to purchase option: You cannot say “I need time to find money”!
• (10:15) Understanding seller financing and how it compares to the Lease to purchase option: Which is better for buyers and sellers?

Things to remember:

1. Investing time, effort, and money into a property can lead to significant financial gains in the long term, especially if the property’s value increases over time.
2. Lease to purchase is a lease agreement where the buyer/tenant has an option to purchase the property at an agreed time during the lease period. The buyer signs a lease for a specific amount of time, and then has the option to purchase the property at an agreed time, typically up until the end of the lease period.
3. Seller financing allows owners to dictate the terms of the sale and charge interest, but also requires a significant down payment and involves signing over ownership title to the buyer. Many owners prefer seller financing because they retain ownership of the property, while some prefer lease to purchase as a way to circumvent high interest rates.

Links

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