Everyone knows that those so-called fixer-uppers can usually be obtained at below market prices. That is the good news. The not-so-good news about it is that even buying a fixer-upper requires cash, which lots of novice real estate investors simply don’t have available.

One answer is to take advantage of a lease option to acquire a fixer-upper, make make monthly payments in cash while you are undertaking repairs on the real property, and then turn around and sell the house to a new homebuyer for profit before the lease option period expires. It’s generally advantageous to attempt to hold the property for at least six to nine months, in order to give yourself or your subcontractors ample opportunity to finish the repairs and then for a buyer to purchase and close on the fixer-upper before your option is up.

If the house is so damaged as to be unlivable, consider offering the property owner a reduced rent, but assert that all of the rent be applied to the purchase price at closing. This is a great way to get a strong equity position in the property without needing to put much cash down to start. That also allows you to take your investment money and apply it for doingg repairs.

An offshoot of this scheme would be to find someone who is handy with tools to rent the house with the aim of purchasing at the end of the option period. Each and every agreement will be different from each other, but you can offer 100 percent of their rent to go toward their deposit, particularly if you’re acquiring that agreement on the underlying lease.

Selling this concept to the seller is usually much less complicated than you may anticipate. After all, you are going to be doing some repairs on the house substantially, with the aim of recovering your investment and making a healthy profit. If you do not attain that, what is the worst thing that could take place, from the house seller’s perspective? They get the place back, with at least a few, and perhaps a healthy amount of the essential repairs and upgrades completed, thereby increasing the value and desirability of the home!

And so, if you have great ideas about being a property investor, but find yourself short on the cash to get moving, one splendid way may be to think about acquiring a fixer-upper and then offering the home seller a lease option arrangement. It could come out to be a win-win for all. The sellers get their money, the buyer receives a nicely revamped property, and you get to keep a substantial profit, without having to put a considerable amount of money!