If you do a lease option you will be receiving payments each month. As investors we want more money to be paid each month if possible. This money is normally non-refundable.
The more money you can obtain for the option credit the more money you have to fix the property, carry payments, or invest elsewhere.
Here are some ways I have seen that can bring in more option credit:
- Give more rents towards their purchase. If common rents is $1200 you should be able to charge about $1320 -$1400. If the buyer pays say $1500 you could give the buyer the extra $100 dollars towards their purchase. This money would be above and beyond the percentage they receive for just paying their monthly lease payment.
- Increase the percentage they receive overall for their lease payment. Normal amount of the lease payment that goes towards the down payment is 7%. But let’s say that the buyer pays an extra $100 dollars per month you could give them say 7.5% of their lease payment to go towards the down payment / purchase.
- You can sell them additional items such as the washer and dryer for an extra $100 per month.
Ideas like this which are similar to working with the option credit can improve the lease option for you. Having a higher amount per month can help you carry the property, pay for payments, or make more. Enjoy!
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