People dream of owning their own
homes. Lease optioning can make it possible.
The Idea of Lease Optioning
If you rent a house or an apartment for $1,000 a month, what do you
have at the end of the year? Well, $12,000 worth of canceled checks,
right? Zip, zilch, zero. Everyone can use lease optioning. Even if you
don’t make a lot of money or don’t choose to be a real estate investor,
you can do one on your own house and stop throwing away your rent dollars. Would you like a vacation home? A house in the mountains or
condo by the beach? You have a choice. You can pay $200,000, but
what if after a year or two you don’t like the place or you want to go
somewhere else? You’re stuck because you bought it. You might have to
sell it, and what if the market has gone down? However, you could
lease-option a vacation home. Stop throwing your rent dollars away,
and stop using your own money to buy property.
Let’s talk about cars for a minute. There used to be only two ways to
buy a car. One way was cash: If you wanted the Camaro with the mag
wheels and the flared fenders, and it cost $12,000, you could pay
$12,000 in cash. Alternatively, you could borrow $12,000 from the car
company or the bank if they’d lend you the money, but your payments
would be high.
Today, about half of all cars are sold using a lease with an option to buy.
You can get the new BMW for $42,000, or put $499 down and pay just
$399 a month. People don’t care about total price; they are more interested
in the down payment and monthly outlay. We get excited when we
see we can drive a Porsche for $2,000 down option money and $599 a
month, because we tend to think of a $90,000 Porsche as unaffordable.
Now, all of a sudden, it is.
Some wise businesspeople figured out they could lease-option cars.
That means you drive it for two or three years and, if you like it and
want to keep it, pay it off at a reduced price because some of your payments
have already gone toward buying the car. It’s a win-win situation.
If you don’t want to keep the car, you simply return it. Lease optioning
offers the best of all worlds. Indeed, a whole industry has emerged out
of this concept.