Number of US homes facing foreclosure jumps 112 percent in first quarter from 2007” -Yahoo Financial News

As the saying goes: “The Numbers Don’t Lie!”   This is the buying opportunity you have all been waiting for. The increase in foreclosures continues to present abundant opportunities for those actively researching and purchasing distressed properties across the country.

Now more than ever, not only do U.S. real estate investors see this as one of “the” most opportune times to buy a piece of America at a discount, foreign investors from the UK, Canada, Middle East, and Asia are beginning to accumulate sizable holdings of US real estate as well.  Simple reasoning….”What goes up, must come down” and when it’s down…BUY IT!

A viable strategy in today’s market for long term investors is the Lease Option.  A lease option has two specific and important components:

First, lease options have a residential lease over a property. The rental charged under the lease is usually slightly above market rates due to the unusual nature of the transaction and unlike a normal residential lease, the tenant pays all repairs and outgoings; and

Secondly, a call option that allows (but does not compel) the tenant to purchase the property at a future date for an agreed future price. An initial fee is charged for this option which is then deducted from the purchase price if the option is taken up.  If the call option is exercised then ultimately a portion of each rental payment is applied against the purchase price. If the option lapses, then the initial fee is forfeited and all the payments received under the deal are treated as rent.

If you have any questions about adding the lease option to your portfolio, give me a call.  Whatever your strategy, the time to buy America is now!