Do you know the 12 month rule for Lease Options?

Lease options can help you get more deals done as a Real Estate investor. However you need to understand some key facts in order to be able to use them effectively. One of the most important rules about lease options is the fact that you need to have a track record for your lease option in order to do a refinance.

You’ll need at least a twelve month record of the lease option in order to be eligible for refinance. In fact, these days more and more lenders are placing a stipulation that the refinance can’t be started until at least 12 months after the lease option was recorded with the county, and not just when it was executed.

When you write your Lease Option contracts, be sure to allow enough time for the recording to take place before you start the refinance.  The average amount of time you should allow is right around 45 days.  Some areas are less, others are more, but remembering the 45 day rule will keep you safe.

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