TMC #17 - Lease Options vs Owner Financing

Today we're talking about why we don’t do lease options as a business model. Actually, the only times when we’re doing short-term lease option is when we’re transferring the deal to medium or long-term owner financing. So we want to compare and contrast lease options vs owner financing and explain why we've chosen the latter. 

What is Covered: 

- Pro-lease arguments and why they don't really work

- When having appreciation is not an advantage at all

- Does it make sense to use depreciation for tax advantage?

- What really happens when the deal goes bad and you're on lease option

- A potential benefit short-term lease option - double dipping

- The benefits of owner financing:

- There is not that much liability when holding notes as opposed to lease contract

- There’s no vacancy in repair with owner finance model, whereas when you get the house back from a lease you always have to do some repair 

-  You get big down payments so the foreclosures don’t hurt you

- Owner financing is highly scalable

-  Con to lease option: from the buyer perspective, you have no control

- Con to owner financing: it doesn’t seem real at first until you cash out the first time

So have a think about these arguments, and email us at support@bradsmotherman.com if you have a question you’d like answered on one of the following Tuesdays.

Resources:
- Join The Investor Creator Community https://www.facebook.com/groups/3083532848354005 

- Website https://www.bradsmotherman.com