Lease Option Technique

Why do people sell properties using lease options? There is a reason that some of the most successful real estate investors use the lease option technique.

No Down Payment: I know what you're thinking, "I would never offer such a thing!" You don't have to. As a real estate investor rich in tools to find motivated sellers, you could get your next home using this lease option technique with no money down. You don't have to tell the seller that an option fee may be customary!

Principle Pay Down: If an option is accompanied by a lease the possibilities are greater for increased equity build up. By applying a portion of the monthly lease payment amount to the purchase price of the property one has the opportunity to widen the gap between the market value and the loan amount. Depending on whether the monthly rent amount is inline with market rates...this is free money! A 30-year amortized, $100,000 loan at 7% begins at approximately $82 per month of principle payments. A $100 per month rent credit beats that, dollar for dollar, every month for almost 3 years!

No New Loan: Possibly the most noteworthy advantage of using a lease option in the residential market is that when the optionee begins the purchase process no "new loan" is required. The prerequisite for this may be working with the right and informed mortgage broker but is usually easily accomplished through a refinance. This can mean no additional out-of-pocket money for closing.

Appreciation: One of the typical advantages of controlling a property using an option is that the buyer retains the right to capture some, if not all, appreciation during the term. The longer the term, the greater the appreciation can be. In the single-family arena, where terms are usually 12-24 months, even moderate amounts of property appreciation can add up. For the buyer, especially, every percentage point of appreciation counts. And, if you're nice enough to offer (or get) a 24-month term in a market increasing at 3% annually, $6,000 on a $100,000 property is significant.

It is better to use your own strategy against you, if you are in the market for new home.

Questions to Ask before Buying an iPod or MP3 Player

Finding just the right iPod can be a confusing task. Every few months, new technology is being used to improve iPods. You probably want to get one that's not going to be obsolete within a few months, so here are some questions to ask before buying an iPod.

Why am I Buying an iPod?

As with all electronics, you should think about how you're going to use an iPod before making a buying decision. In your personal life, you can download songs onto your iPod to listen to while walking, jogging, traveling, or doing yard work. If you're a photographer, you may use your iPod to store digital photo files. Knowing "why" you need an iPod will help you choose just the right size, color, and type of iPod.

How Many Songs do I Plan to Store on my iPod?

If you plan to store hundreds of songs on your iPod, then you should be sure that the storage space can accommodate your needs. Expect to pay more for more space. Also, consider how file size relates to the quality of the songs you download. Some iPods and MP3 players state that you can download hundreds of songs, but the quality of the sound isn't that great. This is because the sound files are compressed to make them fit the available storage space. If you can't afford a lot of storage space, it's better to sacrifice the number of songs you want than to sacrifice quality.

What Type of iPods are Available?

iPods come in many shapes, sizes, colors, and with different storage capacities. Keep in mind that you are not limited to the "iPod" brand because MP3 players serve the same purpose. There are also many types of MP3 players available that give you a variety of choices. The types of iPods available include iPods specifically designed for Mac or Windows computers, regular iPods with lots of storage space, iPod minis for storing just a few of your favorite songs, and iPods with other functions and capabilities.

What Accessories Will I Need for My iPod?

Accessories for iPods might include an iPod case or sock for protecting the device, a remote control, camera connectors, an iPod dock, in-ear headphones, power adaptors, and software to expand its uses. Determine which accessories you will need and factor them into the price of your iPod.

If you are buying an iPod or MP3 player as a gift, consider purchasing a gift card so your recipient can buy iTunes for his or her iPod.

Where Should I Shop for an iPod?

You can shop locally for iPods or MP3 players or go online to get an even greater selection. At an online shopping mall, you can get an iPod or MP3 player, along with other great electronics such as cell phones, computer supplies, Xbox, PS2, and more. There are a variety of brand name items available online, such as Nokia, Sony, Samsung, and Blackberry, so you can get a great quality PDA and other electronics.

The bottom line is that you should choose an iPod or MP3 player that best suits your needs and your lifestyle. When you do, your favorite tunes will always be close at hand.