What is a lease option and how does it help in real estate transactions?
In the sixth part of this conventional turned creative deal, Pace Morby dives into what lease options are and why they are better options for the seller in a deal. He breaks down the typical structure of a lease option in relation to a traditional real estate transaction. Then, he lists the benefits to sellers and buyers that agreeing to lease options would provide. What is a sandwich lease option? Pace goes over what this uncommon strategy is too!
Then, Pace transitions into how he is structuring a lease option for the ongoing real estate transaction featured in this series. He explains why he is choosing to do a lease option in the scenario and what he, as the investor, is doing once the option part of the agreement goes into effect. Lease options are a great way to overcome the debt-to-income (DTI) ratio and a safe way to structure creative finance into a deal if your underwriter is giving you a hard time.
See the entire series here!
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What Is Subject To In Real Estate | Explained
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Chapters:
0:00 - Intro
0:19 - Lease Options
1:29 - Benefits For Sellers
3:20 - Where Is a Lease Option Beneficial?
4:39 - Sandwich Lease Options
6:51 - Why Do an Option?
8:15 - Lease Options Overcome DTI Ratio
15:27 - Outro
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❎ I am not a CPA, attorney, insurance, contractor, lender, or financial advisor. The content in these videos shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a YouTube video for entertainment purposes ONLY ❎