Selling your property to a tenant buyer can ensure that you achieve a better price for your property. Typical sellers are often motivated to sell quickly and are those that might be struggling with their monthly payments, those that need to sell their property but don't have much equity and also the other types of sellers are those that are frustrated landlords.
In most cases, the seller selling the property is one that does not require a lot of money to move on. Often times they actually owe close to or more than what their property is worth.
This allows an investor to set up a sandwich lease option deal in which a tenant is found that will go on to buy the property within specific period of time at pre-agreed price.
By selling your property on a lease option you can open up the potential number of prospective purchasers.
It is important to be aware that lease options only really work if the seller does not require substantial money from the buyer for the property immediately. They may require a few thousand pounds or dollars and this is fine as the investor or tenant buyer can pay this as their option fee to the seller.
The types of sellers that are typically attracted to lease options and want to become tenant buyers are those that have rented for several years and have been unable to get on the housing ladder through the conventional way. This might be because they don't have a big enough deposit as lenders are now requesting significant deposits or it might be because they don't have a clean credit record.
The other common reason is that they may not have been in the country long enough.
The seller benefits by having a quality tenant in their property, a tenant who will often pay higher rent than market rent for having the privilege of buying the property on a lease option. The seller also gets to collect a non-refundable option fee from the buyer, this means that if the tenant buyer does not buy the property within his option term then the seller would keep this payment. If the tenant buyer does buy then this payment will be credited towards the purchase. The seller also benefits by not having to pay for any maintenance costs and can pass these directly on to the tenant buyer. The final benefits include not having to pay any estate agent fees.
Lease options are a great strategy which allows sellers to achieve a good price particularly during a slow market when there is a lack of funding available to buyers.
Amandeep Sandhu is a UK (London based) property investor specialising in acquiring property using no money down strategies. Amandeep has written a home study programme titled "Secrets of Investing in Property without Money, Mortgages and Risk".
To find out how you can learn the secrets of investing in property without money, mortgages and risk, visit http://www.leaseoptionprofits.co.uk
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