I was thinking of adding lease options as another possibility for my business; however I am not a licensed agent and from what I have read you do need to be licensed to offer lease options ? Is this true ? Can I legally do lease options without a realtor’s license are lease options better than wholesaling ?
Wholesaling is a great place to start. If you structure the contract right, you can reduce your risks. You’ll get paid very nicely while you’re learning how to negotiate, how to value properties, how to estimate repair costs, etc…
Once you get your confidence built up, it will be a good time to diversify with Leases (not options) - just start with master leases. They will produce cash flow which adds up fast.
excerpt from:
http://www.biggerpockets.com/forums/12/topics/86269-lease-option-vs-wholesaling
It is absolutely not true that you need to be a licensed Agent to use lease options as an investing strategy. I’m not an Agent and I’ve been doing these type deals for about 10 years. You need the correct agreements that put you in the deal as a principal.
And for what it’s worth, lease options are much easier and less risky than wholesaling.
Thanks for the info…glad to know I don’t have to wait until I get my license before I can add this to my business.
One is not better that the other. And it is not true that you need a license to do Lease Options. I suggest you master the business of Wholesaling first and then work your way on learning Lease Options. The latter would even be a good option for your Wholesaling leads who are firm on selling at their price, have properties in better condition and are not in a hurry to sell or get cash.
If you learn to do both, you’ll have an edge over other Wholesalers and would have more to offer to your leads.