could someone please explain to me, in detail, how l/o works? im buying my first home. i have $2,000 incash and 8yrs rental history in the place im in now. is l/o the way to go for me? how soon would i get all the tax benefits of home ownership? any help at all, i would be greatful.
You would get all the benefits of home ownership when you finally own the home (when you exercise your option to buy it). Until then, the homeowner who is leasing HIS home to you is the one who gets the bennies. You are a tenant/buyer. You have control of the use of the home through a lease and you have an option to buy the home. You do not HAVE to buy it. But, if you choose to buy the owner has to sell it to you. An option is a unilateral agreement, meaning only one party has to perform. The seller must sell if you choose to exercise your option.
Did that help? ???
ok buzz, im with ya on this. how does the l/p work then?
and thank you for your reply
a lease purchase = a lease combined with a purchase agreement that obligates the lessee (tenant) to purchase the property under specified conditions.
That’s NOT true at ALL !
A lease purchase is a Lease combined with an option to purchase - that part you got right.
It does NOT obligate the lessee (tenant) to do ANYTHING. It gives him the RIGHT to purchase before the end of the option period…NOT the obligation.
The only one who is obligated to do ANYTHING with an OPTION in place is the SELLER. If the tenant chooses to exercise his option and buy the property, the seller MUST sell it to him.
The option is a “unilateral” agreement: only one party is obligated and bound by it, and that’s the seller.
You might want to scroll up and read what rick was asking, He was asking what a L/P was, not a L/O… you just explained what a L/O was… I gave a definition of what a L/P was!!! AND if i am wrong, I think you need to contact the web hosts to REICLUB to inform them their L/P definition in their INVESTING GLOSSARY is wrong!!!
Maybe you should do more research before you tell someone they are wrong!!!
I rarely do a lease purchase…more lease options, so I naturally gravitated to the definition I use daily.
My bad. He was asking about LP’s and you’re def is correct.
No foul. ;D