Lease Option Real Estate Investing: Advantages And Disadvantages

One creative way to get started investing in real estate is to use a lease option. This method of investing, basically gives the investor the right to possess, be in control of and profit from a property without owning it. You can visit to know more about lease option real estate investing.

A real estate lease option contract is a combination of two documents.

When the lease option contract is written properly, it can provide wow benefits to the investor. If the lease option includes the “right to sub-lease”, the investor can generate a positive cash flow by renting the property to a resident for the duration of his lease. If the lease option includes a “right of assignment” the investor could assign the contract to another buyer for a quick profit.

Lease option real estate investing has following advantages:

• High Leverage
• Little to no money
• Flexible
• Financially Low Risk

One disadvantage of lease option real estate investing, involves the tenant or tenant-buyer possibly defaulting on monthly rental payments. This would make it necessary for the investor to come up with money out of pocket to pay the owner, and possibly have to proceed with eviction process.

Despite the few disadvantages, lease option real estate investing continues to be an excellent way to invest in real estate. It also remains to be an excellent way to generate cash flow and possible future profits on flexible terms.