Have you ever seen those late night infomercials talking about getting rich with no money down real estate investing? More often than not they’re talking about Lease Options.

A lease option (also known as purchase option or rent-to-own) is the classic method by which you can control large amounts of real estate with absolutely no money down, even if your credit is less than perfect - or completely shot!).

How do lease options work? It basically boils down to this: you find a seller who is motivated to sell but just can’t seem to move the house. You step in and offer to take all their worries away by taking over all the payments for the house for a period of a couple years, with an agreement to buy the house from them at any point during the contract.


Interested in knowing how Jeff B. made $12,000 profit in just a 6 week period?

Jeff purchased T.C. Bradley’s lease option course which guided him to the resulting profit mentioned above.

Is it Easy? With T.C. Bradley riding shotgun with you every step of the
way, it’s easier than you might think.

You then put a tenant/buyer in the house who rents from you at a rate greater than the one you’re paying to the home owner. You also give them the option to buy the house within the next couple of years at a price that is higher than the one you’ve agreed to pay for the house.

Sound a little confusing? Let’s demonstrate with an example:

The ad in the paper reads “Private Sale. 3Br 2Bath. Nice home in nice area. Seller motivated. 555-5555″. You pick up the phone and, after a short conversation to see just how motivated the seller is, you agree to go out and meet the seller at the house.You get a tour of the house and it is indeed a very nice house. The seller is transferring and needs to get out of the house quickly, but is having trouble getting a good price for his home.

You offer to come to his aid by offering to pay near his asking price, but only if he’s flexible on the terms.The seller is indeed flexible and wants to hear more. You offer to take over all of his monthly payments associated with the house for a period of 2 years, during which time you have the option (but not the obligation) to buy the house for $100,000, which is the seller’s asking price. Your monthly payments for the mortgage, insurance and taxes will be $750.

The seller agrees that this is a good thing and signs your agreement. You then place an ad in the paper for a house that’s rent-to-own, and a monthly rent of $950. The phone rings and a young couple are interested. You offer them the option to buy the home any time within the next 2 years at a price of $120,000. If they decide not to buy at the end of the 2 years then you can either rent to a new tenant/buyer or simply hand the house back to the owner.

So let’s look at the numbers for the example above:

Your monthly payments to home owner: $750

Your monthly income: $950

Monthly Profit: $200

Your purchase price: $100,000

Tenant/buyer purchase price: $120,000

Your profit: $20,000!

Not bad for no money down!