What is the Lease Option or Rent to Own Technique?

The Lease Option  technique and the rent to own technique are one in the same. There is absolutely no difference in the two except the name. When using this technique you are simply “leasing” your property to an interested party and giving them the “option to purchase” the property from you sometime during the lease period. We call this interested party a tenant/buyer because they are a tenant today and hopefully a buyer down the road. Don't confuse option with obligation. When using this technique your tenant/buyer has no obligation to buy, but they do have the option of buying, if they so desire.

In most cases you will use this exit strategy as a way of creating a premium priced sale in the very near future where it was not possible otherwise. The reason selling the property through conventional methods was probably not an option to you, or at least not an option at a premium price is because the types of properties that work best for this type of technique are properties located in areas that are predominantly tenant occupied. When selling properties at premium prices the conventional way you will want to stay in areas that are predominantly owner occupied therefore greatly reducing your buying areas.

When you have the Lease Option technique as part of your real estate arsenal you now have the ability to buy in “tenant occupied” areas and still realize the same profits you would in “owner occupied” areas. Having this broad of a market to buy in greatly increases your chances of buying at reduced prices on a more consistent basis.