Of course the key to making lease option real estate investing work, is finding motivated sellers and buyers. Finding these motivated sellers and buyers shouldn't be difficult. The continuing down turn in the real estate market, has created a large number of sellers who can't sell their property and buyers who can't get financing to buy. The seller could possibly get a fair offer to be paid in the future, by selling their property to a real estate investor on a lease option basis. A potential tenant-buyer could obtain home ownership, without having to qualify through traditional home loan guidelines.
2. • Leases are the
foundation of property
performance. The best
salespeople understand
the leasing process and
the high value that it
brings to the future sale.
A good lease can
enhance a sale price
when the time comes.
• The way that leases work
for the property investor
will solidly impact on the
property and its
performance for the
duration of the lease. As
you work with tenants or
buyers for the
property, the type of
lease that applies will
also impact on the
negotiations. Let's look
at the main lease types
and expand on some of
the most relevant issues
for you.
3. • When it comes to leasing a
property and particularly a
retail property, the tenant mix
process will be very
important. This then says that
the single tenant lease should
be matched to the
surrounding tenants in the
greater property. That is how
you build 'clusters' of tenants
and strengthen the market
rent for the landlord.
• If you are going to look for
some of the leasing business
in the local area, choose the
best properties to work on
and the quality clients to
work for. There is a real
reason for this. Small and
single properties are usually
very 'hard work' to lease. If
the base rent is small, your
fee for a successful
transaction will also be small.
Focus your leasing effort on
quality properties with good
fee potential.
4. • Negotiating a commercial real
estate lease needn't be a
battle. Remember, and you
shouldn't have to remind the
landlord of this, that it is in
both of your best interests
that you are successful. If you
lease on bad terms, you go
out of business, and they
have no tenant. In fact, many
landlords now recognize that
providing "superior tenant
service" begins by making the
lease negotiation process as
simple and efficient for
tenants as possible.
• Bear in mind that oftentimes
they are going to be paid by
the landlord for filling the
space. Building a relationship
with your agent can be done,
just as building a relationship
with your banker, your realtor
you bought your home with,
or your advertising agent with communication. Ask
around, ask other agents, ask
the agent questions, leave
nothing to question.
5. • Negotiation leverage between
landlords and tenants has
shifted tremendously
throughout the last several
decades; however, it is now a
highly favorable market for
businesses considering
relocation. A surplus of office
vacancies has paved the way
for tenants to secure great
lease terms and let's face
it, due to the fierce
competition in the
marketplace, some landlords
are offering financial
incentives that are just plain
hard to pass up. It's now
possible for companies to get
into a higher-grade office
building in a better location at
the same rental rate, or in
some cases, an even a lower
rate than their current
building. However, change is
