What Is A Lease Option

What Is A Lease Option

What is a lease option? Friend, I’m glad
you’re watching this video because today, out of all the strategies that I have
used to build wealth from the world of real estate, I’m going to be sharing with
you my absolute number one, absolute favorite. It’s called the lease option. So, I want to share with you how I
discovered this because years ago, I was a brand-new investor. I hadn’t made the
millions of dollars, I hadn’t you know, created the amazing lifestyle that I
have today. And I was just starting out. I was nervous but I was hungry. And right
now, if you’re watching this I want to ask. Are you hungry? Les Brown, famous
motivational speaker and that big rich deep black voice what do I say, “Are you
hungry?’ And this hunger is this idea of what’s
motivating you. If you’re watching this video, I’m going to impart all that I can to
show you how to build wealth today in your life. And literally, lease option
just gets me tickled pink because I’m going to show you exactly how I stumbled on it
and then how I mastered it. So, my buddies were also investing at the time and they
had already bought several homes. And I had just bought my first house. And they
basically said, “Kris, you need to do a lease option.” I’m like, “Well, what is that?’
And they described this handmade sign. They said, “We want you to go to the, you
know, the the supply store like officemax or wherever you get that bright
fluorescent poster board.” You know what I’m talking about?
And they said, “This is what we want you to write. Rent… (In bad handwriting by the
way. Don’t print this out. Not a professional sign.) Rent to own.’ It didn’t
go off the edge like that. But it said Rent To Own. No bank qualifying. And then
it had my phone number. That this is not really my phone number. I don’t know how
you guys still managed to get my phone number. But I swear, it’s out there
somehow and I’m constantly getting text from you guys. And you’re awesome and I
love watching you rock it in real estate. There’s a phone number and you put this
sign basically out there. And bright colored hideous and you put it on just
like a stand and you plunk that in the yard. They said, “You’ll start getting
calls like crazy.” So on my very first house, I’m doing this for the very first
time. And I put that sign out in the yard on that on that first investment
property I had. And sure enough I started getting calls. “Tell me about the house.”
And they had instructed me, “Don’t answer questions on the phone.
Go bring people to the house and then do an open house.” So that next weekend, I had
an open house. I had a few families walk on through. And they said, “well, what is
this?” and I was just following what was given to me and then I’m
the rest. And basically, I said, “Well, rent to own means instead of renting and stop
wasting your money. You can buy it.” I own this house. I’ll be the bank and I’ll
help you buy it in a few years. And that definitely had an attraction to a lot of
people. So, they would walk through the house. They have fall in love with that.
They get excited and then they basically said, “Okay, so how does this work?” I want
to show you the flyer. I’d put this flyer together and this is
what I had learned. Now my mortgagee, what I want you to understand this. I got a
sweet, sweet, deal on this house. When you do a house, you should always have a
sweet deal. You should always be like freaking excited about the numbers on
the deal. So, I got this house and I purchased it for a hundred and fifty
thousand dollars. But on this exact house, it actually had a value around $230,000. So, I was excited because the difference
between 150 grand and 230, that’s an $80,000 spread. Like, I
felt like I hit the jackpot. Like, that was way, way, way, way, way, more money than
I made in a single year at the time. So, I’d found a good deal. When I actually
bought it, my mortgage payment was just under a thousand dollars a month. Now,
young, dumb, college kid trying to figure out what he wants to do with this life.
No real career path. Starting on this real estate journey. I had an extra
thousand dollar a month payment overhead in my life. And that was kind of
nerve-wracking for me. But I was optimistic. So, this is the flyer that I
put together. It said no. But you know, rent to own, no bank qualifying and this
is the exciting part. It basically said, you could all you could pay $3,000 as a
downpayment and you could have a payment of $1,600 a month. Or you could put
$5,000 down and you could have a payment of 1,500 a month. Or you could put $7,000
down and you could have a payment of 1350 a month. Now, check it out dude. Zoom
in on this. I want you to see this. $7000. My payment was a thousand. So if someone
gave me seven grand up front, I was still going to have a $350 month cash flow. 1350 minus the thousand. So, I’ll put my cash flow here.
This is going to be three hundred and fifty dollars a month. Now, to a young, dumb,
college kid, $350 a month was enough to pay for
like a car payment or to actually pay down debt or to buy school books. On this
one, if they gave me five grand, I was going to make $500 a month. And I’m like,
“Freak yeah!” Or if they give me $3,000, I’m going to make $600 a month. Now, check it out.
The family that actually got this house, they gave me $3,000, they started paying
$1600 a month. I was making $600 a month cash flow. But let me ask you. Do you
really care if they put more or less down and if they give you that kind of
cash flow? I’m just telling you right now, you don’t care, it doesn’t matter. It all
amortizes out and works out to the same in over 24 months. One of them
will be slightly bigger than the other but the real big deal here is that
you’re getting paid a big chunk upfront non-refundable. They’re committing to
entirely take care of the house because that’s what a lease option is. Plus you
get a really juicy cash flow. This family didn’t buy this house but the next
family did. And on that house, I made over $100,000. In fact, my sold that made $130,000. And I’ve made a lot of good money in real
estate. This strategy is like seriously it’s the number one, it’s what
works for me, it’s what I love about it. Now, I want to share with you one last
thing that you need to know about what a lease option is. In real estate, when you
have a home, you’re going to rent it, you’ll have a rental contract. What we’re doing
is we’re adding a special second contract called option to purchase
agreement. And what they’re going to do is this is the standard rental and this is
the biggest air people will make in real estate. In that same document, they’ll add
the language for the lease option. In most states, that will actually qualify
as tenure of ownership in the home. And if they actually can’t buy the house,
they would actually have grounds to sue you or make a legal argument to get
their money back. What you need is a separate document and this document is
the option to purchase agreement. With the option to purchase agreement, what
you’re going to do is that’s where you’re going to say, “You’re going to give me this
amount down and this is the terms of that agreement here’s how long you have.”
You need the two agreements. I’ve pioneered it, most people don’t have
it. It has kept me and my clients legally safe. So you need to understand, the lease
option is awesome but there are wrong ways to do it and there are right ways
to do it. Payment calculators, what you should
charge and rent. How to find the deals, how to even buy
real estate on lease option without needing to put any money down. I share
all of that with people when I actually mentor with them. And I would tell you as
a final bonus here that if you’re going to get in the game of real estate, you need
a mentor. You need someone that will come into your life that will actually show
you the ropes and I’m all set up to do that for you. So, if you’d actually like
to join my real estate community of thousands of investors. If you want to
learn how to and buy the best real estate in the country and you want to
learn a strategy. That is 250% more profitable than regular rentals.
Today’s information will hopefully get started. But if you’re looking to take a
more aggressive step and work with me and my team then what you do is you
click the link in the description below and reach out to have a private
consultation. Someone that I’ve hand-picked and trained on my team will
evaluate where you’re at in your life and your circumstances and show you
exactly what it would take for us to work together. Here’s what I can tell you,
it’s cheap. It will cost you something because I want you to have some skin in
the game. But it is so inexpensive because I want too poor, dumb, college
kids like me to be able to get all the mentoring they needed to make their
first million dollars in real estate. So, check it out. And also, if you’re not a
subscriber, do that. I got valuable content coming out every single day
where I’m going to be teaching you new things about how to make the most money
you can in real estate because at the end of the day, my friends, you want to be
free. That freedom, you can’t put a price on it. And these jobs keep us landlocked
working 40, 50, 60 hours a week versus being free. And so real estate, it is the
best pathway to freedom. And I invite you to take me up on learning more about
exactly what that looks like. Get that free consultation and see how me and my
team can help you create that wealth now.

56 thoughts on “What Is A Lease Option

  1. How do you but a house with no income though? :/

  2. Hello kris! I am supper hyped to do this when i become 18+ but can u make a video about the risks of doing it? Thanks!!

  3. I am very hungry lol les brown 🤗

  4. Mr Kris, is having your designated mentor strictly for people who are American citizens or also other countries?

  5. Mr Kris, is having your designated mentor strictly for people who are American citizens or also other countries?

  6. I'm hungry!

  7. Hello Kris, thanks for sharing this video.
    How do you break the numbers? Let's say how do you decide what down payment to assign based on the rent per month. And also what percentage should I calculate for down payments.

  8. I’m 17 but I want too learn all I can already in what if real estate would you consider me too sign up already or wait ?

  9. How does your mentoring system work ?

  10. Every time I reach out to work with you no one contacts me back

  11. 1 of your members said she was going to call me yesterday and never called.

  12. You are the king of real estate

  13. How do you find houses below their value? And how to determine the real value of a house? Thanks in advance

  14. Any videos on tenant experience

  15. does Kris read comments ?

  16. Yes Kris 🌠✊🏽

  17. My daily dose of real estate has arrived!

  18. How do you pick the right family?? How do they qualify to buy the house?

  19. Does this work in the uk

  20. Once they decide to buy the house how do you know how much to sell it for

  21. Kris, I still don't get how this is better for you than renting out a property. With a lease option you give them the house at some point, instead of collecting rent for the rest of your lifetime. Can you go a bit more into depth with the numbers and maybe compare the numbers to a regular rental property?

  22. Kris do you lease or own a car. What is your opinion..


  24. Hey Kris. Studying your easy-going lessons over 3 plus months. Keep them flowing. QOTN: Would you apply this similar real estate investing technique to a commercial? Hope to hear from you! Thanks ~Mr. J

  25. Hey Kris, can you make a new video on what to say or put on a contract. Keep up the great work!

  26. Woo, that's some sweet audio quality! Glad to see you're getting back to the basics of your channel. The lease option stuff is why I first subscribed.

  27. Love these videos so educational and truthful. My question is how do you calculate the value of the house ? Most real estate videos I watch they find a house for a P- 150k and the actual V- 230. How would you calculate or look for what to calculate for that ? And the lawful issues with real estate confuse me as well. But it’s defiantly something I’m interested in. Thank you for the knowledge.

  28. Love the new style of vlog Kris

  29. Thanks for these videos man

  30. I wish i was in that county to attend kris's courses.. that's what's keeping me away from learning

  31. Kris I’m a young poor UVU student ! Please help me ! 🙏

  32. who pays the property taxes? etc

  33. That's a huge gap. How did you find a property with a market value that low? was it a foreclosure.

  34. that fly tho

  35. But what about in Texas? Do we have to do 180 days?

  36. Great information Kris

  37. Can you use lease option on the house you just purchased? like literally purchased last week? I know there is little chance of tenants buying the house after 2 years contract but how does that work? For example, I bought this house last week (in 2019) and I'm trying to rent out this house with 2 yrs lease option. In that case, tenants get to buy my house at the maximum value of today? or maximum value in 2021?

  38. I asked people on biggerpockets about lease option and many of them are saying "lease option is PREDATORY!" They're highly against it. Although I don't see why it is predatory and why it is so horrible thing to do to people who try go buy a house

  39. I'm in Florida and sitting in the prop as we speak brother I'm going to do exactly what you said on your lease option vids.

  40. Its not that cheap Kris. I mean in comparison to what can be earned potentially Its a lot. Poor folks can not do this.

  41. Hey Kris I’m 18 years old I want to build wealth soceities blue print is far from working, and I’m passionate about real estate I love how you train people to build wealth in real estate and I wanna take the next step to be a part of your team and learn how to do it step by step so I can give back to my community with this knowledge as well

  42. “Are you Hungry!?” Soon as you said it in Les Brown voice. I had to like the video😂

  43. Love it!

  44. Months later, he introduces compassionate finance. A better version of lease option

  45. Is this option available anywhere.. in India?

  46. Well, I am curious to know how you afford to buy the house in the first place?

  47. Have any of the lease auction purchasers asked for sellers assist plus the rent credits?

  48. not going to lie I watched your youtube videos and 4 months later I got an amazing deal on a house! thank you

  49. I’m going to Lease Option my wife. Any takers?

  50. but where did you get the initial 150k for the house…?

  51. I'm so confused on lease options I feel like I need to take a class for real estate

  52. How did you find out that the house has a value of 230k, and you bought it for 150k ?

  53. But how did you got the house and how you pay of the mortgage and are you giving the mortgage to the tenants

  54. Kris, how do you set up a contract for a lease option? You had mentioned it in the video, however, I’m still a little confused as to what would need to be done legally when you purchase your house and put it up for a lease. Any input would be appreciated.
    Thank you.

  55. A lot of these videos always start with him getting these ridiculous deals. People say they are out there but I have been in real estate for years and I can tell you now – no they are not. No one would take an $80K hit unless there is a recession like 07/08 I promise you.

  56. Deep black voice? How insensitively racist smh

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