Do you know why real estate investors should consider lease options? Perhaps you are an investor with renters in place that have requested an opportunity to enter into a lease option for the property. Or perhaps you’re an investor ready to exit a property but find it challenging to move; the buyer pool for lease option properties is steadily increasing as interest rates rise. Additionally, the jump in home prices has made it difficult for many buyers to attain the dream of homeownership. Whatever the reason you’re researching the subject, there are many methods to sell an investment property, and lease options offer benefits for Cincinnati real estate investors that are worth noting. So read on as we explore why real estate investors should consider lease options in Cincinnati.
Who doesn’t like to realize savings on their investments? Your tax advisor can clue you in on the tax benefits for real estate investors who offer lease options in Cincinnati.
Eliminate Holding Costs
While you won’t realize your entire profits on the sale instantaneously, your buyer will be paying the usual holding costs that roll in monthly during the term of the agreement. Often, buyers are responsible for the maintenance and repairs as if they were already the rightful owners. While the arrangement may delay your gratification, you hold the title, and if the buyers don’t exercise the option, history shows your equity in the property will continue to climb, so you’ve lost nothing, which is another reason why real estate investors should consider lease options in Cincinnati.
Keeping Upfront Down
When buyers enter the agreement, they’ll pay option money upfront for the right to buy the property. This option money will be yours to keep, even if they don’t buy the property at the end of the agreement, and this is another reason real estate investors need consider lease options in Cincinnati. With a lease option, you could offer to place an agreed-upon amount of the rent in escrow to apply towards the downpayment. However, these funds return to the buyers if they fail to exercise the option to buy the property. Rent credit is an attractive incentive to buyers that need to build up funds for a downpayment.
With a lease option, you can either agree upon a much higher final sales price, which you’ve estimated based on predictive analysis or agree to decide on the final sales price at the end of the agreement. Sellers risk an unforeseen jump in market values and losing out on more significant profits by setting the price after the contract. Typically buyers prefer a preset price and are willing to pay a little more to enjoy the benefits of homeownership before actually owning the property. This increased profit is another reason why real estate investors can consider lease options in Cincinnati.
Sell Your House with We Buy NKY Houses
We Buy NKY Houses wants to help you decide which sales method is the best option for your circumstances. We want you to feel good about the sale long after the closing, so We Buy NKY Houses is transparent about our offer, and you won’t have to worry about commissions or hidden fees coming off of the top at closing, either.
Choose what’s best for you! The professional hybrid agent investors at We Buy NKY Houses can offer you BOTH options. At We Buy NKY Houses, we will run the numbers and go through everything in detail. Our goal at We Buy NKY Houses is to inform you of every step of the process with complete transparency. We Buy NKY Houses our job is to make sure you feel confident in your decision when selling your house in Cincinnati.
If you have questions like: What is the benefit of a lease option? What is a lease option in real estate investing? Are lease options profitable? Then contact us! When you call, we listen. We want to find out what is causing you stress, how fast you need to sell, and how we can help you.