Lease Purchase Frequently Asked Questions

 

Why should I use a lease purchase to sell my home?

Well let me just give you a few examples of Seller/Landlord Benefits. Generally TOP sales price no matter what the market conditions. Higher than Usual Rent. No Realtor Commissions. Tax Shelter is Maintained. No Long Vacancies. Larger Market of Buyers. Quality tenant/buyers i.e. No Eviction Issues. Peace of Mind.!

 

Why should I use a lease purchase to buy my home?

Well let me just give you a few examples of Buyer/Tenant Benefits. Rent Money is Working Towards the Purchase of the Property. Minimum Cash Out of Your Pocket. Option Money is Applied Towards the Purchase of the Property. Credit Problems will NOT Hinder your Purchase. Faster Equity Growth. Time to repair your credit or investigate the best financing. Peace of Mind.!

 

Will I incur any "out-of-pocket" expenses?

If you are selling your home to me through a lease purchase/option there is generally no out of pocket expenses. There could be some consulting fees that are usually recouped through the lease purchase. If you are buying a home from me there will be option consideration that usually applies towards the purchase price of the home or a consultation fee depending on your needs. See "consulting" below.

 

What is a lease purchase?

A lease purchase basically means rent to own (they mean the same thing). A lease purchase combines a basic lease contract with an option to purchase contract. (Hint: Rent to Own) The lease purchase contract is the quickest, easiest and least expensive way to buy, sell or invest in real estate. It replaces the typical adversarial relationship that usually exists between buyers and sellers with a win-win concept of transferring real estate ownership. It is highly sought after by those who are aware of it's powerful features and benefits. That is when I come into the picture!

 

How long will it take to sell or buy a home?

For Seller/Landlords I make every effort to move your property within 30 days or less. Buyer/Tenants can usually be in the home within two to four weeks. Once all the paperwork has been reviewed and signed. Don't forget I take you through all the details. The actual purchase of the home usually takes place 1-2 years after occupancy.

 

Will lease purchasing work in my area?

Of course, lease purchasing works well in all markets both up and down and in any country that has a free market economy where lease agreements and option agreements are legal. Lease Purchasing is legal in all 50 United States, Canada, the UK and Australia for example. I am located in Northern San Diego County but that does not limit my ability to be of value to you.

 

Do I pay you for your services?

Basically you pay me if I am consulting/coaching/mentoring you. If you are selling a home you will recover any fees plus put cash (option consideration) in your pocket through the lease purchase/option transaction. You may share up front money with me in a win-win cooperative agreement. If you are looking to BUY a home through a "rent to own" transaction I would charge a consultation/coaching/mentoring fee to help you get into a home. You won't find a better deal or person to work with. I will take you by the hand and provide you with the proper paperwork, how to find a "rent to own", advertising material and unlimited consultation until you find a home. Usually in less than 60 days. Remember I will protect your interests which could save you thousands of dollars in the long run. You don't pay me any real estate fees either. Again that will save you thousands of dollars.

 

 

Do You pay referral fees?

Absolutely, I pay a generous referral fee once the deal is completed. I am in the business to help people so give me a call and let's talk.

 

Do you consult? Even if I don't live in your area?

Absolutely, I can assist you in many strategies of lease purchasing no matter where you live. I am an investor/consultant located in North San Diego County so give me a call and let's talk. If I can't help you I will be honest and tell you. I will try and point you in the right direction. Here are a few possible solutions to move your home quickly. 1) You can hire me as a consultant and I will hold your hand every step of the way through the lease purchase process. 2) I can customize an agreement that fits your requirements, help find you a quality tenant and we can divide the up front money. 3) I can lease the property from you with an agreed upon purchase price that is good for the term of the lease. I will find a suitable tenant/buyer whom I will pre-qualify and sublease it to them. When the tenant/buyer is ready to exercise the option they will buy the house from you. In the meantime your monthly mortgage payment is covered with a quality tenant. (This may be limited to Southern California) 4) I will handle all the paperwork, basically manage the property, guarantee all rents whether occupied or vacant, take care of all simple repairs and only call you when the tenant is ready to close.(This may be limited to Southern California)

 

Are there any drawbacks to lease purchasing?

There are only a few minor drawbacks but you should be aware of them. If you are a Seller/Landlord an "equitable title" claim by your buyer/tenant could pose an issue but not with my contracts. If you are a buyer/tenant then you would want to protect your option money if the seller/landlord disappears, dies or decides they don't want to sell. Again I will protect your interests.

 

Are you interested in only traditional family homes?

No! I can assist anybody with a townhome, condo, manufactured home or mobil home.

 

Do I need to qualify for a loan?

Absolutely not. I am interested in people that pay on time but I may be required to check your credit for a nominal fee.

 

Do you offer your services in any state?

Yes I do. Lease Purchase is not limited to U.S. property only (see faq above).

 

Do I need a real estate agent?

Absolutely not. In many cases this will save you 4-8% of the selling price. That could mean thousands of dollars in your pocket! In matter of fact you do not need a mortgage broker, bank, lawyer or real estate agent.

 

What is the difference between a lease Option and a Lease Purchase?

Well there is no difference. When an experienced real estate professional talks about a Lease Option or Lease Purchase they are talking about an arrangement that contains both a Lease Contract and an option to purchase contract.

 

Are professional realtors receptive to the Lease Purchase contract?

Most Realtors are uneducated on the subject of Lease Purchasing and believe they won't receive a commission if they list the property for sale by a Lease Purchase. That does not mean they are bad realtors. They would receive a commission but it would be 12-24 months down the road. If you are a knowledgeable realtor then you are educated on the benefits of a lease Purchase. If you are a realtor and are having problems moving a home, give me a call to see how a lease purchase could benefit you.

 

Who pays the taxes on a Lease Purchase contract?

Simple: The person whose name is on the deed.

[P.S. The seller/landlord maintains ALL the tax benefits until the property is sold!]

 

Who pays the insurance on a Lease Purchase contract?

Simple: The insurance on the home is paid by the owner of the home. Typically the buyer/tenant has renter's insurance.

 

What can I expect when I contact you?

I treat every client with the respect and fairness that they should expect. I respond to all inquisitions as expedient as I can with the personal touch you are looking for. I work for you so you don't have to. Please contact me for a FREE Seller/Buyer analysis. I look forward to speaking with you.

DON'T DELAY, ACT TODAY!

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