Re: sell before you buy - Posted by The55+GuyFromAZ
Posted by The55+GuyFromAZ on September 12, 2004 at 23:27:33:
The problem with lease-options is that you must make monthly payments to the owner/sellerand if you default at any time during the term of the lease-option, you lose everything you have invested. But with a straight option, you pay a one-time option price (whatever amount you and the seller agree to) and that amount is the only money you lose if you don’t exercise the option (complete the purchase at the pre-agreed purchase price before the option expires).
**This link will give you more detail on it - http://www.businesslyceum.com/REOptions.html
A net-lease comes in 3 varieties… net, net-net and net-net-net (commonally referred to as net, double-net, triple-net or N, NN and NNN). With a triple-net, the leasee (renter) pays rent and ALL expenses associated with the property… i.e - if the roof leaks or someone’s dog eats the carpet, they pay to fix it. Net and double-net are just modified vesions of this, in which the landlord pays some portion of the property upkeep.
When Ernest refers to a “net lease” he’s speaking of a mobile home park BUYER, leasing the park from the mobile home park SELLER… it’s just a way to kick the tires and see if you really want to own it, in which case you’d convert the net lease to a lease option or just buy it straight out via seller-financing or a bank loan.