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 Belleville real estate investors that are worth noting. So read on
as we explore why real estate investors should consider lease options in
Belleville.
Tax Benefits
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 Belleville.
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 Belleville
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 should consider lease
options in Belleville. 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.
Sales Price
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
should consider lease options in Belleville
Talk to one of our local professional home buyers at Cardinal Creek Properties about the rewards of lease options in Belleville real estate
investors like you. At Cardinal Creek Properties, we believe in total
transparency, so the professional home buyers at Cardinal Creek
Properties will advise you about the current market value of your
property, detailing how much you’d likely profit by listing or by
providing a lease option opportunity. At Cardinal Creek Properties, we
will also offer the numbers to you on the third option to sell your
investment property, and you may be surprised to discover just how much
time, energy, and money you can save by selling directly. Our goal at
Cardinal Creek Properties is to help you, our neighbors here in
Belleville, meet the requirements that your current circumstances call
for and realize the highest returns on your investment property. Call Cardinal Creek Properties at (314) 467-8137.
