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If you do not get anything else from this chapter, please get this: Always use separate

lease and real estate option agreements to document your lease and option

transactions. And never, ever use a standard lease-option agreement, which includes

both the lease and the option to purchase in the same agreement. That is

a big no-no. Why is that? Because under the terms contained in a standard boilerplate

lease-option agreement, once the lessee-optionee defaults on the lease

and is evicted, the option agreement becomes null and void, too. However, when

you use separate lease and option agreements, the option agreement will not automatically

get wiped out if you default on the terms of the lease agreement and

are evicted. The separate option agreement will still be valid until it is exercised

or expires. And you will still have an opportunity to profit from the house under

option. Also, in order to use the lease and option strategy that I am telling you

about in this chapter, both your lease and real estate option agreements must include

assignment clauses that allow you to sell your agreements to a third party

without the property owner 's permission.

I highly recommend that you do not let the cat out of the bag by recording a copy

of your real estate option agreement in the official public records. In my opinion,

recording the entire agreement only blabs the sale price and terms to the whole

world, which could come back to bite you in the backside later on. Instead, I recommend

that you record a separate memorandum of real estate option agreement.