m Is I told you in the introduction, the straight or naked real estate option strategy that I am writing about in this book is completely different from the so-called lease-option strategy, which has been hailed by numerous lease-option fanatics as the greatest real estate investment strategy since the introduction of nothing down in the late 1970s. But to me, the standard lease-option strategy that is being taught today is just as flawed as the nothing-down strategy of yesteryear! I say this because almost all of the material that has been written on the subject of lease-options glosses over the potential risks, problems, and pitfalls that can occur when using the typical lease-option scheme being peddled today. In fact, the term lease-option, as it pertains to the standard lease-option strategy being taught today, is a misnomer. What is being taught today is really a sublease-option strategy, which requires investors to lease a property and then sublease it to a so-called tenant-buyer. Thus, the correct term for this strategy is sublease-options and not lease-options. This is exactly why in the first part of this chapter I give you the lowdown on the standard lease-option strategy that is being taught today. And once I have finished telling you all of the details on the potential risks and problems that lease-options pose, I show you how to properly structure a lease and option transaction so that you can use the low-risk, low-cost lease and option strategy to profit from single-family houses.
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