Spend some time networking and getting to know the agent so you build up a personal relationship. You want to reach a stage where the realtor will automatically call you if a seller suggests they will rent their house.

What you are really doing here is leveraging the agent's knowledge. Realtors liaise with sellers regularly, so they know who is in trouble, who can rent, and w

The resource in question is your realtor. Many investors are too quick to dismiss the realtor as not having the best deals, or their best deals are done before the property hits the open market.

While it is true that real estate agents tend to focus on the retail market, they are in business to make sales, and that can often mean thinking outside the square, for both the realtor and investor.

Remember, the agent not only has sales skills, but will pick up valuable information in the normal course of their business. A good agent will know what properties are coming on the market and, more important, which properties would best qualify for a lease option transaction, as opposed to a traditional outright sale.

And that's where you, as an investor, enter the picture. If you put the time and effort into helping an agent understand the lease option process, they will soon be coming to you with proposals.

A lease option consists of two elements, the first of which is the lease. This is a contract for use and possession of the property, thus creating a lessor/lessee relationship.

The second element provides a purchase option, which is a unilateral agreement where the seller agrees to give the buyer the exclusive right to the leased property.

It can be a win-win situation for all parties, including the agent, particularly in situations where the seller doesn't need their equity out, or they don't have any equity in their home.

First, you will generally have to educate the agent about lease options. Select a small number of successful realtors, write to them, outlining what you propose then follow it up with a personal presentation.

Spend some time networking and getting to know the agent so you build up a personal relationship. You want to reach a stage where the realtor will automatically call you if a seller suggests they will rent their house.

What you are really doing here is leveraging the agent's knowledge. Realtors liaise with sellers regularly, so they know who is in trouble, who can rent, and wh

Remember, the agent not only has sales skills, but will pick up valuable information in the normal course of their business. A good agent will know what properties are coming on the market and, more important, which properties would best qualify for a lease option transaction, as opposed to a traditional outright sale.

And that's where you, as an investor, enter the picture. If you put the time and effort into helping an agent understand the lease option process, they will soon be coming to you with proposals.

A lease option consists of two elements, the first of which is the lease. This is a contract for use and possession of the property, thus creating a lessor/lessee relationship.

The second element provides a purchase option, which is a unilateral agreement where the seller agrees to give the buyer the exclusive right to the leased property.

It can be a win-win situation for all parties, including the agent, particularly in situations where the seller doesn't need their equity out, or they don't have any equity in their home.

First, you will generally have to educate the agent about lease options. Select a small number of successful realtors, write to them, outlining what you propose then follow it up with a personal presentation.

Spend some time networking and getting to know the agent so you build up a personal relationship. You want to reach a stage where the realtor will automatically call you if a seller suggests they will rent their house.

What you are really doing here is leveraging the agent's knowledge. Realtors liaise with sellers regularly, so they know who is in trouble, who can rent, and w

And that's where you, as an investor, enter the picture. If you put the time and effort into helping an agent understand the lease option process, they will soon be coming to you with proposals.

A lease option consists of two elements, the first of which is the lease. This is a contract for use and possession of the property, thus creating a lessor/lessee relationship.

The second element provides a purchase option, which is a unilateral agreement where the seller agrees to give the buyer the exclusive right to the leased property.

It can be a win-win situation for all parties, including the agent, particularly in situations where the seller doesn't need their equity out, or they don't have any equity in their home.

First, you will generally have to educate the agent about lease options. Select a small number of successful realtors, write to them, outlining what you propose then follow it up with a personal presentation.

Spend some time networking and getting to know the agent so you build up a personal relationship. You want to reach a stage where the realtor will automatically call you if a seller suggests they will rent their house.

What you are really doing here is leveraging the agent's knowledge. Realtors liaise with sellers regularly, so they know who is in trouble, who can rent, and w

It can be a win-win situation for all parties, including the agent, particularly in situations where the seller doesn't need their equity out, or they don't have any equity in their home.

First, you will generally have to educate the agent about lease options. Select a small number of successful realtors, write to them, outlining what you propose then follow it up with a personal presentation.

Spend some time networking and getting to know the agent so you build up a personal relationship. You want to reach a stage where the realtor will automatically call you if a seller suggests they will rent their house.

What you are really doing here is leveraging the agent's knowledge. Realtors liaise with sellers regularly, so they know who is in trouble, who can rent, and w

Spend some time networking and getting to know the agent so you build up a personal relationship. You want to reach a stage where the realtor will automatically call you if a seller suggests they will rent their house.

What you are really doing here is leveraging the agent's knowledge. Realtors liaise with sellers regularly, so they know who is in trouble, who can rent, and which homes are vacant.

Your relationship with the realtor will only grow, if they are paid – promptly! No professional operator will wait years on payment for work they have done, so be prepared to give the agent a percentage of the commission upfront, when the lease option is signed.

If you're a really serious investor, you may consider becoming a licensed agent yourself. This allows you to receive commission and gives you access to a database of comparables – data you need to buy and sell.

Be aware that an option is not the same as a regular contract. A regular contract is a bilateral agreement that legally binds both parties to an agreement, while an option only binds the seller.

Lease Options are not an arrangement to sell like contracts for deeds are. They are strictly a lessor/lessee agreement, meaning that if the tenant decides not to use their option to purchase, the owner will benefit from any market appreciation.

A lease option is a technique that involves gaining "control" of a property, but not ownership—just the right to possess a property now and purchase that property at some future date with terms you define today.

A lease option is attractive in a situation where sellers have reasonable debt and can be considered a low risk of defaulting. Conversely, sellers with a heavy debt burden are in financial trouble of some sort and you need to get the deed by either buying the property outright, or making the sale "subject to".

The main point is, you must get this person's name off the title as fast as possible or you could get caught up in their mess, particularly if a creditor puts a caveat on the property and has to be paid before you can take up the option to purchase.

Sellers with good debt are motivated by different circumstanc