Sign Ohio Banking Residential Lease Agreement Easy

Industry sign banking ohio residential lease agreement easy

hello I'm Nissan Robinson the real estate expert and today we're gonna cover a land contract and at least with the option to buy and what's the difference between the two first let me explain a land contract a lot of contract is when you're actually purchasing a property when you purchase a property you can actually purchase property via land contract it could be a property let's say on the market and the seller wants to sell this property and it want to increase their chances of summer's property they could say it's for sale via cash finance airline contract meaning if your credit isn't so good you were a bank or another lending institution will finance you the seller themselves will find that shoot the purchase to properly understand what we do on the land contract the owner is financing you on the property instead of a bank financing you the owners financing you with an owner ask for just like the bank a small percentage down and you pay a monthly amount into the homes paid off off via certain amount of years same situation it just instead of being a bank or a lending institution it's the owner doing three understand why on a land contract you're purchasing this property you are responsible for everything dealing with the property you're responsible for the taxes you're responsible for the water responsible for every bill associated with this property you're responsible how to share this on the property you really responsible for all repairs this is your property your own the property you just have someone who has an interest in the property until they are paid off that's what a land contract is at least with an option you are not buying this property you're coming to someone who wants to possibly sell the property possibly want to lease a property you will see on an MLS some listen tickets and it will be for a lease and you will see another listing ticket where the same property is for sale so well well at least what option is you go to that seller you say okay I see where a seller's property I'm a user random number for a hundred thousand dollars I want to purchase property five hundred thousand dollars but right now my is not in order to purchase it for a hundred thousand or I don't have the hundred thousand dollars in cash to purchase a song but I want to purchase it I'm expected to get money I'll also coming in and I'll have the funds to purchase it and six months a year two years or i'ma fix my credit in a year two years I'll be able to purchase it so let me do this let me pay you five thousand dollars two thousand dollars whatever number you agree on to give me the option in this circle of time let's just say three years well I could come and still bring you one hundred thousand dollars and you sell this property to that's what at least with the option is you're hanging owner to keep that option available for you to purchase it at a set price because real estate go up and down let's just say you know this how option really works in the best interest let's say you pay $5,000 skeet option for three years in two and a half years that property that was once worth one hundred thousand is not worth $200,000 you're only obligated to pay that owner a hundred thousand dollars for that personal that property because you bought that option you know and you can also play your contract your option to sell and let it be assignable where you could sell that that or that the actual option to someone else if you don't want to do it and you can put that in there as well you know so let's say you know property would up in value but you still don't have the funds to actually purchase the program hundred thousand you can sell that property have someone also pay two hundred thousand for by you having an option you soldier out shake you off with a hundred thousand get out over 100,000 and sell it to the third party so it can be beneficial so that's what at least what the option is you know you have the option to purchase a property and a certain at a later date for the same price but make no mistakes you are renting the property you saw for the time be that you're in a property you're renting you are a renter you are you're not responsible for the the insurance you're not responsible for all the bills are they associated with their property like like property taxes the owners still gotta pay the property taxes oh I'm just still got patients on the house you're just waiting the owners responsible for everything with the property you're just buying an option for a later date to store purchase that property for set them up that you guys agreed on so that's the difference between a land contract and at least with the option and exactly what they are I'm Nissan Robison the real estate expert and this is land contract first lease with a hot [Music]