Having hopefully read the previous two posts ‘Lease Options’ and ‘Lease Options; How Else You Can Use Them to Your Advantage,’ you’d now have a basic understanding of Lease Options and how they can enable you to become a landlord without even having to officially own any property. Actually I would even go so far as to say that being a Lease Option landlord is in many ways far safer than being a traditional landlord; for if the contract is written out correctly, it is plausible that if anything should go wrong between you (the investor) the tenant and the seller, you can simply terminate the Lease and step out of the contract, forcing the tenant to have his tenancy non-void and control of the property returns to the seller.
If you have ever used a solicitor before, than I’m sure you’re well aware as to how much their services can cost; especially if you are asking the solicitor to draw up a contract for you and unfortunately a specially trained Lease Option solicitor is no different. However when forming a Lease Option, there are a few possible scenarios where you may well be able to avoid having to pay a solicitor for his work; or at the very least delay the payment.
So suppose you don’t wish to fork out the money to pay the solicitor, well what options do you have? Well one option is to have a third party pay the solicitor fees for you. For example, you could a loan from friends, family or even the bank. Alternatively one tactic used by many Lease Option investors is to actually get the seller to pay the solicitors fees. Now you may be thinking that this is a bit immoral, having the seller who is providing you control of her property for certain amount her month. Yet in reality, if she were to sale her property the ordinary way (through an estate agent) she would have to pay estate agent fees, probably bring in a surveyor to value the property, etc, which in itself would cost far more than the fees for a Lease Option solicitor to draw up a contract.
Alternatively if the seller refuses to pay the solicitors fees, you could always see if the solicitor would be willing to accept payment in the form of future installments from the amount you’d be making each month once a paying tenant has moved into the property. Yet don’t be surprised if as you are new to the Lease Option business, the solicitor initially turns down the offer of future installments for payment upfront. As with most other folk, solicitors are not always willing to do something on faith that they will get paid at some distant point in the future.
Ultimately while the finding and creating a Lease Option opportunity with no money down of your own can be hard, if you are flexible and persistent (as well as persuasive) you may well be able find opportunities and become a Lease Option Landlord with very little money of your own.