How Some Investors and Homeowners Are Making Money in Real Estate, Despite the Market Catastrophe

— by Victoria Ring,

I recently met a gentleman named Kevin who owned several properties in Pueblo, Colorado.  He presented a lease-to-own option to me on a home that was purchased as a foreclosure. In fact, the property was in such disrepair that the property sold for only $14,000.  However, after Kevin made an investment of only $20,000 to improve the property, the market value increased to $48,000 and was placed in a livable condition.

After the improvements, instead of renting the property, Kevin decided to lease it.  What is the difference between a lease and a rental?  People who lease a property with the intention of purchasing it, normally take better care of the property and often invest money into additional renovations.  On the flip side, renters are known for destroying property and often leave owing the landlord rent.

Lease to own options vary; there is no standard agreement.  The offer Kevin presented to me was to rent the property for 6 months.  Then, if I decided to purchase the property, one-half of the rent I paid would be applied toward the purchase price as well as any renovations I had completed.

But the best part of the deal was knowing that I did not need good credit or a large down payment to qualify.  Since Kevin and his company owned the home, I would be purchasing it from him.  With a positive 6 month rental history I qualified for a 8-percent loan with no jumping through hoops at the standard bank.

These options are very attractive to people who have filed bankruptcy and those who have suffered job losses and have very little money as a downpaymernt to purchase a home.  These options also help to clean up neighborhoods and renovate properties that would have otherwise sat vacant and attract crime; eventually causing the demise of the neighborhood.

Another group that is benefiting from the lease-to-own options are homeowners who are unable to sell their homes.  Instead of letting the home sit vacant while they pay the monthly mortgage payment, the homeowner will enter into a lease-to-own agreement. Some will ask for a substantial amount down to carry the loan while others only ask for the first and last months rent (as in a standard rental.)  And smart real estate agents will suggest these options to their clients in order to alleviate the owner making the mortgage payment and immediately generate them a positive cash flow.

If you would like to know more about the lease-to-own options I urge you to do some research on the internet.  Or, feel free to send me an email at and I will be happy to share my knowledge or help you in any way I can.  Or, visit my website for business coaching and training options at

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