Folks learn that you know something about real estate investing and they eagerly ask you about buying foreclosure property.

The general assumption is that they can buy a beautiful home at a deep discount at a foreclosure auction.

Their smiles fade when you explain that they will have to pay cash on spot and they must be able to research title to be sure they aren't buying trouble.

But wait... there's more... There is also a little something called "Durrett Rule".

Oh boy... can that be a like a knife in back. For example: You spend time and effort scouting out a nice home scheduled for foreclosure auction. You search title and scare up cash to have in your pocket when you go to sale.

Hurray... You have winning bid at foreclosure sale and buy home at about a 40% discount to market value. After doing your happy dance you spend next few weeks doing needed fix up. Then you find a renter and settle back to collect rents for next few years.

But wait! Who's that knocking on door.

Lease-options offer home ownership opportunities to folks with little cash and not so hot credit.

Oh boy, there are plenty of those around.

Both parties in a lease-option deal are counting on buyer being able to qualify for a home loan before option expires.

The investor wants to collect his profit when optionee buys. The optionee wants to own home.

During lease period renter/optionee must be working to improve their credit score to point where they can qualify for a loan and buy home.

Even though there is plenty of sub-prime loan money floating around at present time... lease-option method of acquiring a home seems to appeal to many.