The Lease Option to Buy with FLEXIBLE terms are fair to both Buyer and Seller. Lease Option to Buy has many benefits to both Buyer and Seller. Buyer may not have their house sold, Buyer may not have a down payment, Buyer may need to move NOW, Buyer may need to repair their credit, Buyer can use their “RENT” money and deposit to build up 100% CASH equity, Buyer may need to maximize their cash flow and Seller wants to be assured that house is SOLD….
Recent Example:
- Buyer has a house to sell...
- Moves into my house
- Pays $10,000.00 Non-refundable Deposit
- Makes monthly lease payments
- Has 6 months to buy
- Receives 100% credit of all money paid (includes deposit, and lease payments) toward agreed purchase price
- Buyer Has Time to Arrange Best Financing
- Buyer Has Their Rent Money Work for Them!
- Gets YOU Into a Home With Minimal Down Payment
- Maximize YOUR Buying Power !
- Obtain Ultimate Security for You and Your Family
- Purchase Price is Locked In !
Stop Wasting Rent Money!
Rent To OWN!
Lost your Job? Lost YOUR House?
Want a New BEGINNING?
Use YOUR rent as part or all of YOUR down payment at an agreed price!
Why pay rent, and you get no wealth created?
You can pay rent, and create equity IN YOUR HOME!
CONTACT ME TODAY, AND TELL ME WHAT YOU NEED:
Dallas Thompson: dallasth@earthlink.net
FAX: 661-823-0130
LEASE-TO-OWN-HOUSE-PURCHASE
What Is a Lease-to-Own Purchase?
A lease-to-own house purchase (also "rent-to-own purchase" or "lease purchase") is a lease combined with an option to purchase the property within a specified period, usually 3 years or less, at an agreed-upon price. I prefer a six month Lease-To-Own Option. The borrower (leasee) pays an option fee, 1% to 5% of the price, which is credited to the purchase price. The borrower pays rent, and an additional rent premium that is also credited to the purchase price. If the purchase option is not exercised, the buyer loses both the option fee and the rent premium.
As with any kind of financial contract, lease-purchase deals can be structured in such a way that all the benefits flow to one of the parties and none to the other. I am f-l-e-x-i-b-l-e on the trerms that must be fair to both parties. Lease-purchase plans have a solid economic rationale, which means that they can be structured so that both parties benefit.
Contract Features of a Lease-Purchase
The sale price of the house and the rent are market-determined, yet subject to negotiation just as in a straight purchase or rental transaction. Buyers generally prefer a long option period because it provides more time to build equity and repair credit. A long period can boomerang on them, however, if they are never able to exercise the option, since they lose the rent premium they have been paying all the while, in addition to the option fee. Sellers generally prefer a short option period, but if it is too short, the house won’t be sold. The option fee and rent premium are viewed differently by buyers and sellers. To the buyer, they are part of the equity in the house they will soon own. Fully anticipating that they will exercise the option, the only cost is the interest they would otherwise have earned. To sellers, however, these payments are the best guarantee that their houses will sell; if they don’t sell, the payments are retained as income. That the benefit to the seller generally exceeds the cost to the buyer makes the lease-to-own deal a possible win-win.
Using a Lease-Purchase to Buy
The lease-purchase offers homeownership opportunities to consumers with little cash and/or poor credit, who are prepared to bet on themselves. The bet is that before the option period expires, they will qualify for the mortgage they need to exercise the purchase option. During the option period, they have the opportunity to rebuild their credit and accumulate equity while living in the house. It is very likely that those who succeed in exercising their option under a lease-purchase do better than if they had financed a conventional purchase in the sub-prime market. The savings in finance costs will more than offset a higher price on the house. But those who can’t exercise their option will lose their bets.