Lease Option
This is made up of two parts: A lease, or rental agreement, and an option. They may be written together as one contract or as two. The Lease is simply a rental agreement between the owner and the potential lessee (tenant). Often these leases will be "triple net lease" leases (NNN) in which the lessee is responsible for paying for the taxes, insurance, maintenance, and upkeep of the property. The lease payment is typically 5-15% higher than rent might be for the same property. This type of lease can be structured so that the lessee can take the tax benefits as if he were the home owner.
Read more about this topic: Creative Real Estate Investing
Famous quotes containing the words lease and/or option:
“Summers lease hath all too short a date.”
—William Shakespeare (15641616)
“You dont merely give over your creativity to making a filmyou give over your life! In theatre, by contrast, you live these two rather strange lives simultaneously; you have no option but to confront the mould on last nights washing-up.”
—Daniel Day Lewis (b. 1957)