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 Rhode Island real estate investors that are worth noting. So read on as we explore why real estate investors should consider lease options in Rhode Island.
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 Rhode Island.
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 Rhode Island
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 Rhode Island. 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 should consider lease options in Rhode Island
Talk to one of our local professional home buyers at I Buy Your House about the rewards of lease options in Rhode Island real estate investors like you. At I Buy Your House, we believe in total transparency, so the professional home buyers at I Buy Your House 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 I Buy Your House, 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 I Buy Your House is to help you, our neighbors here in Rhode Island, meet the requirements that your current circumstances call for and realize the highest returns on your investment property. Call I Buy Your House at 401-537-1327.