Strong Lease Option Contracts will give you the power to buy real-estate property without having to worry about losing your money in the process. If you use these clauses, and terms you can rest assured that you will be safe in your investment. Learn the how to use these contracts to make strong aggressive offers.
This clause listed below means that if interest rates are higher than a specified interest rate at the end of the loan term, then the Buyer shall be able to extend the loan term by up to two years, but only if the Seller approves.
The Clause:
In the even that Interest Rates are higher than ________% in ___________ (Days, Weeks, Months, Years) then SELLER shall have the Option of Extending The Loan Period by up to ________, at SELLER'S discretion.
Make money no matter what happens, general rule of thumb. Have nothing to lose!
This clause means that the Seller will have the right to re-purchase the property within a specified period of time by repaying all the Buyer's expenses, plus giving the Buyer a specified profit.
The Clause: Seller to have the right to buy back the property for _______ years after the close of escrow, by repaying all Buyer's expenses, plus a premium of _______%
Use strong lease option contracts! This next clause means that the Buyer will give the Seller a note secured by a First Mortgage against a different property than the one he/she is purchasing. The note will have periodic payments including principal and interest and will be fully amortized or paid off, by the end of the loan term.
The Clause: Buyer to give Seller a note in the amount of $________ at ____% interest to be fully amortized over a period of _______ years and secured by a First Mortgage (Deed of Trust) against the property commonly known as _____________
This clause means that the Buyer will give the Seller a note secured by a First Mortgage against a different property than the one he/she is purchasing. The note will have periodic payments which will be interest-only. The principal will all be due at the end of the loan term.
The Clause: Buyer to give Seller a note in the amount of $________ at ____% interest with interest-only payments, all due and payable in _______ years and secured by a First Mortgage (Deed of Trust) against the property commonly known as _____________
This clause means that the Buyer is to give the Seller something with a pre-agreed face value, instead of cash for the Seller's equity. Whether the Seller's equity equals the full purchase price, or whether the Buyer is also going to take over any existing financing is not specified
The Clause: BUYER to give SELLER ____________ with a value of $________________ for SELLER'S equity of $_______________
I have been using these clauses in all of my lease option contracts. They have been tested in the field of battle if you wanna call it that, and I have had no issues. Lease option contracts are not hard to come buy. If you wish to learn more, and even see some of the Lease option contracts I have used you can learn more here http://www.squidoo.com/TheContractWizard
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