Lease Options VS Seller Financing

Lease Options VS Seller Financing | EXPLAINED

Рет қаралды 7,928

2 жыл бұрын

In this training video, you’ll learn the difference between a lease option and seller finance. This is probably one of the most asked questions I get so I’m going to explain the difference in detail. You’ll learn the definition of a lease option and seller finance, a line-by-line comparison and the similarities.
You’ll also discover a seller finance strategy that you should never do because you could get you into a lot of trouble.
What is a Lease Option - Rent to Own - Lease Purchase in Real Estate?
Taking Control without Taking Title!
Simply defined, a lease-option is a lease agreement, combined with a purchase agreement. Through a lease-option agreement, a buyer leases a property (usually for 1-3 years) and then has the right (or option) to purchase the property on or before the end of that agreement.
Learn How to Invest with Lease Options:
• How to Lease Option Re...
What is Seller and Owner Financing in Real Estate?
The Seller Becomes the Bank!
This is any situation where the seller acts as a financial institution, receiving payments toward the purchase of a piece of property. There are many types of seller financing which can be done even if there’s existing financing on the property. Knowing how to use Seller Financing will enable you to make money with one of the most profitable strategies in Real Estate today!
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👁 Who is Chris Goff?
Chris Goff started Real Estate Investing in 1999. Chris didn't have any money to work with, so he was interested in learning 'no money down' real estate strategies. Since then, Chris has spent the last 2 decades building wealth in real estate along with building the #1 Real Estate Investing Software Program for Real Estate Investors… REIPro.
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#creativefinance #sellerfinancing #leaseoption

Пікірлер: 31

@DocJJohnson Жыл бұрын

Thanks Chris

@chriscarruth2195 2 жыл бұрын

Excellent content

@ChrisGoff 2 жыл бұрын

Appreciate that!

@magdalajean-baptiste773 Жыл бұрын

Thank you for giving a clear definition of what they mean. I'm a newbie and just started to learn the terminology of REI jargons. Thanks for clarifying.

@ChrisGoff Жыл бұрын

Appreciate the comment, and you're welcome! You should join us on our next webinar: chrisgoff.lpages.co/deal-analysis/

@Susan.Beavers 9 ай бұрын

this was awesome! thank u!

@ChrisGoff 9 ай бұрын

You are very welcome, and I'm glad it was helpful. Don't miss out on new videos - subscribe now!

@sandys2672 2 ай бұрын

Omg you just saved me! The seller is trying to push me into a land contract.

@ChrisGoff 2 ай бұрын

You are welcome. A Land Contract is only good for the seller who doesn't want to give away the deed. In some cases it's a good thing, this would avoid the due on sale clause.

@SaraNorman-lv6cu 20 күн бұрын

I got something in the mail today today asking me if I considered a short-term lease purchase on my house that is currently on the market for sale. Im still a little confused but maybe I will call him and ask. He also included the benefits are 1-No commission/costs 2-Close in 12 months or less! 3-No repairs- "AS IS" 4-Cash flow each month! 5-Top Dollar Also includes that I will receive full price and no commission! My mothers stole my inheritance that her cousin left for me in the will, and so if this will bring me more money then a agent would without anything negative its a tempting option, however I do not want to end up making a major mistake! Thanks in advance.

@ChrisGoff 12 күн бұрын

Just make sure the numbers work for you!

@dreknows1 2 жыл бұрын

Hey, great stuff Chris. I'm still having a hard time understanding the "escrow" portion of the payment to seller using seller financing. If I understand correctly, escrow include taxes and insurance but wouldn't I as the buyer be assuming that cost? If so, why would I be paying the seller that on top of principle and interest?

@ChrisGoff 2 жыл бұрын

Yes, when seller financing, you own the home so you are paying the taxes and insurance. There are 3 ways to pay... you can pay them on your own, not to the seller. Second, you could make the payment to the seller and verify that they paid. Third, you can have an Escrow company handle the payments for everyone. Most people would elect for the third option. You will find a lot of mortgages today where the taxes and insurance are included in the monthly payment. A seller that seller finances a property, could technically do the same thing with you. There are several ways to work these deals. Hope this helps!

@edmandell3064 6 ай бұрын

Great video. If I purchase a property via seller financing. I could present the deed and loan agreement to a bank to refinance? What about a Land contract?

@ChrisGoff 6 ай бұрын

In a land contract, you don't have the deed until it's paid off. You can still get bank financing to purchase. It's just not a refinance. Hope this helps!

@lonestarr1707 2 жыл бұрын

I live in ATL will you be doing an event soon??

@ChrisGoff 2 жыл бұрын

We are planning on doing events next year and the ATL will probably be on the list.

@Davion_savant Жыл бұрын

Hello Chris , what would be a seller finance scenario be if the seller still has a mortgage?

@ChrisGoff Жыл бұрын

The same, you just have to account for the existing mortgage and use a wrap with a sub-2.

@querlinestsurin 11 ай бұрын

In a land contract does the buyer pay insurance on the property also

@ChrisGoff 11 ай бұрын

Usually, the seller adds the monthly taxes and insurance totals to the buyer's monthly payment and will add the buyer as a second insured on their policy. Hope this helps!

@CoffeeAndBusiness 11 ай бұрын

On a lease option, why would I rent my home out at the regular rental rate when I can just do that and not have to sell my home? Isn’t the whole point to get more cash flow upfront? Aka higher than regular rent? And the extra goes to their deposit?

@ChrisGoff 11 ай бұрын

It's not really about just the rent amount and cash flow. It's about the non-refundable down payment and the backend sales price. You want cash flow but I rarely increase the rental rate for someone.

@CoffeeAndBusiness 11 ай бұрын

@@ChrisGoff how much down payment are you collecting?

@RobbKrautbauer Жыл бұрын

I'm confused, how is Seller financing as you explain in this video different than a Contract For Deed?

@ChrisGoff Жыл бұрын

With a contract for deed, you don’t receive the deed until you pay off the debt. It’s like a car, you don’t receive title until it’s paid in full. Hope this helps.

@ericstugart6134 Жыл бұрын

What are your thoughts on getting a deal via seller financing and then doing a lease option agreement to someone as an exit strategy?

@ChrisGoff Жыл бұрын

You sure can!

@ericstugart6134 Жыл бұрын

@@ChrisGoff have you ever done it?

@ChrisGoff Жыл бұрын

@@ericstugart6134 Hundreds of times. Your exit strategy is based on how YOU want to profit and how the numbers work out. We use our deal analyzer in REIPro and to analyze all of this.