Having the right contracts and agreements for lease options

Did you know that before you go out there you have to have the right tools and resources?  For example, you can’t go out there with a contract from Staples to buy somebody house or to lease somebody house because you may be opening yourself up for potential liabilities down the road.  You want to go out there with the right tools to maximize ways to make money from your real estate business opportunity.

A lease option agreement between two parties in which the party who owns the property sells to the second party the right to purchase the property at a future date. The second party lives in or subleases the property until the lease option expires.

Purchase Option Agreement

The Option Agreement gives the buyer the right to purchase the property without the obligation. The Option can provide great benefits for buyers and sellers and is a flexible tool to create true win-win deals. As a lease option seller you can often negotiate for above market rent rates and a substantial non-refundable option fee, traditionally 3-5% of the purchase price. The tenant/buyer is typically responsible for maintaining the property and generally takes better care of the property than the typical renter as they are planning on purchasing in the future. As a lease option buyer you can move into or sublease a home that you are interested in purchasing at a fraction of the cost of buying traditionally. You can also negotiate to have the option fee as well as a portion or all of your monthly rent payments apply toward the purchase. A fixed purchase price can become very valuable in the future.

Residential Lease Agreement

A good contract can help you win in court. A great contract can keep you out of court. Our Lease is a powerful tool in managing your investment property. It has been developed by tough litigation attorneys and professional real estate investors, who have both extensively studied and personally lived the challenges and issues that can arise in a landlord/tenant relationship. By utilizing years of professional experience from all sides of the transaction, our Lease is designed to anticipate potential challenges and provide the Landlord with the ammunition needed to effectively meet and address them.

Rental Application

When I coach my real estate students, I can't emphasize enough Don't underestimate the necessity of a thorough rental application. Once a tenant falls behind in rent or damages your property, the only remedy you have is to begin eviction proceedings and sue in court for damages. Even if you win, collecting on a judgment is often difficult. The best way to avoid costly tenants is to effectively screen them. Our Rental Application has been developed by experienced landlords and attorneys to provide the information and verification you need to make informed decisions about who to accept as your tenant, as well as information you will need to enforce any judgment you may receive in the event of a default.

Guarantor Agreement

If there is any indication that a tenant may not be able to meet the rent obligations in the future, the landlord may require someone else, such as a parent, to guarantee the rent payments. This is similar to a lender getting someone to co-sign on a loan. The effect of the Guarantor Agreement is that the guarantor is legally responsible to make all payments under the Lease if they are unmet by the Tenant.

Lead Paint Disclosure and Brochure

Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting before 1978 housing, landlords must disclose the presence of known lead-based paint and/or lead-based paint hazards in the dwelling. Tenants must also receive a federally approved pamphlet on lead poisoning prevention. With each package you will received the required forms necessary to fulfill this obligation.

Other state-required disclosures

Some states require disclosures in addition to the standard documents/agreements we mentioned here so check with your state and local laws as well as your real estate attorney.  The right tools are tools that you are using, such as documents reviewed by your attorney.  Your attorney is licensed, skilled, and specializes in that particular niche or in that particular strategy that you wish to implement.  Make sure that you have the right contracts, right tools, and you go out there doing the right thing in owning your own business.  There is nothing worse than going out there, trying to save money, using the wrong tools, using the wrong contracts, and getting sued and losing thousands of dollars in liabilities and having other unwanted headaches but maybe several hundreds of thousands of dollars, and losing sleep and doing things the wrong way.  Make sure you have the right tools the right contracts, that have been reviewed and approved by your attorney, and now you can go out confidently and help people legitimately and legally and be able to make money now.  If you like some of these documents and contracts visit www.GuaranteeProfits.com