How to set up a lease with option to buy

( note: use this is as a primer, seek further advice from your Real Estate broker/tax advisor, lawyer, insurance agent, and mortgage holder…I saw a few errors of fact, p ).

A lease with option to buy is a lease that allows a tenant the right to purchase the property for a specific price within a certain time frame. In most lease-option situations, a portion of the rent is applied to a future down payment. Lease options are most popular among buyers who don’t have enough funds for a down payment and closing costs. Here is how you set one up:

 

addditional reading/checklists:

http://www.ironcladrealestate.com/lease_option.php

Renters in Foreclosure: What Are Their Rights?

Federal legislation signed in May 2009 gives important rights to tenants whose landlords have lost their properties through foreclosure.

Renters and tenants are now being affected by foreclosures almost as often as homeowners. The mortgage industry crisis that started in 2006 has resulted in thousands — no, make that millions — of foreclosed homes. Most of the occupants are the homeowners themselves, who must scramble to find alternate housing with very little notice. They’re being joined by scores of renters who discover, often with no warning, that their rented house or apartment is now owned by a bank, which wants them out.

http://landlordadvice.wordpress.com/

http://www.nolo.com/legal-encyclopedia/article-30064.html

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Converting Your Home Into a Rental: Tax Matters

…converting a former personal residence into a rental property has some tricky tax implications that may come back to haunt you when you finally sell the property. And, as you will see, knowing your home’s fair market value on the day you convert it to a rental is very important.

Read more: Converting Your Home Into a Rental: Tax Matters at SmartMoney.com http://www.smartmoney.com/personal-finance/taxes/the-tax-consequences-of-becoming-a-landlord/#ixzz0hEMxRiUf

Tax Consequences of a “Short Sale” of Real Estate vs. Foreclosure

Considerations for rental real estate

Federal Income Tax Filing For Residential Landlords

Fantastic blog resource w/ links tools, tax tips, profitability calculations, …. the list goes on.

http://www.great-landlord-info.com/federal-income-tax.html

A forum for landlord / investors.

When we broker your property transactions, give your tenants an incentive to rent from you.

We will rebate to them at closing part our earned brokerage fees when you refer them to us for their eventual purchase.

They win ( w/ a rebate ), we win ( you and them as customers ), YOU WIN – value added incentive to your tenants !