LEASE OPTION, most commonly known as RENT-TO-OWN, is one technique that can help you get out of your house. There are so many benefits in using this type of strategy.
Why a LEASE/PURCHASE (RENT TO OWN) is right for you?
At some point in your life you have probably done both of these: Rent an apartment, bought/sold a house. A LEASE/PURCHASE AGREEMENT is a combination of the two, a lease agreement combined with an option to purchase the property (you are buying the right to purchase the property at a specified date). Two transactions combined into one.
This is a very powerful tool in real estate. Many sellers over look this awesome tool. Here are some of the benefits in using a LEASE/PURCHASE transaction:
1. DEBT RELIEF – Someone else pays for your mortgage. Yes, you will be relieved of that responsibility. That is the huge. You can then move on with the next phase of your life. So many homeowners would use a LEASE/PURCHASE AGREEMENT in a heartbeat if they could pass on to another the responsibility of paying the mortgage.
2. SAVES THE SELLERS CREDIT – This is the number 2 reason why you should consider using a LEASE/PURCHASE AGREEMENT. Why let your property go into foreclosure and destroy your credit and your chance of buying another home later?
3. QUICK SALE - This is another big factor. Generally it takes 30-60 days to close on a property. By doing a LEASE/PURCHASE transaction you can be out of your house in days, not a month or more.
4. SAVE ON REALTOR FEES – This is a good bit of savings. Fees range from 6% to as high as 10%. That is a few thousand dollars in savings.
5. ATTRACT HIGHER QUALITY TENANTS - The tenant will have a vested interest in your property. The tenant is a potential home owner as opposed to a regular tenant with no intention to buy the house. The tenant will take care of the house more so because it will eventually be theirs (that is the plan).
6. MAINTENANCE FREE – The tenant will take pride in the home. They will eventually be the homeowner. They will maintain this property, pay on time and possibly add improvements. “Pride of Ownership” will be the driving force.
7. TAX BENEFITS – As a landlord you can take advantage of the tax benefits.
8. NO VACANCY – There will be no vacancy. We take care of this for you.
You might be thinking “Ok so what’s your angle?” We are real estate investors, not Realtors. We deal wholesale direct with the public. We are in the business of privately leasing, buying, fixing, marketing, and selling homes.
As you can see from the benefits listed above, this unique LEASE/PURCHASE program we offer could help you move forward. We will lease with option to buy the property from you with an agreed upon price that is good for the term of the lease. We will then find a suitable tenant/buyer (see benefit 5 above) whom we will screen (pre-qualify). When the tenant/buyer is ready to qualify for a loan, we will then execute the purchase from you for all cash. There is NO FEE charged to you. We make our profit by offering the tenant/buyer a price that is higher than the price we pay you. It’s a WIN/WIN for all involved. Hardly any effort from your end.
You might also think “Why don’t I just list my house with a real estate agent?” You could. It won’t hurt to list the home with a realtor. However, be aware that most brokers will simply “list” your property. This means it will be in the MLS and then they WAIT for a bite. There is problem with that. There are literally thousands of homes in the MLS your home will be competing with that read just like yours. “Waiting” for a bite is not good if you are looking to move FAST. If you want to move FAST, you have to offer something different that others have not thought about. The LEASE WITH OPTION TO BUY is that special something that gives you a competitive edge. It makes your house more attractive.
Another issue with listing your property with a real estate agent is that most of them are not well versed in LEASE/PURCHASE as majority of the time they deal with straight sales. Most Realtors will not get involved with a LEASE/PURCHASE simply because they want a higher fee.
When we lease/purchase your from you, we take this seriously. We will treat your house like it is our own. We constantly brain storm to think of creative ways to move it quickly so that you can move on with your life!
“What if the tenant/buyer tears up my house?” There is no way we can guarantee that the tenant/buyer won’t tear up your house since we won’t be living with them. We will do our best to manage this risk. Also, under our agreement, if that happens, we would repair it at our expense. Our main and important objective is to find a buyer who will qualify for a loan and eventually purchase the home, not just a tenant. It has been our experience that tenant/buyers treat the house as if it were their own thus damages are rarely a problem.
“Why don’t I just hire a property manager?” A property management company will charge you about 10% or higher of the monthly rent to “manage” your property. We use the word MANAGE loosely because managing (taking care of) involves calling the plumber or handyman or other professional services to take care of the issues at the property but AT YOUR EXPENSE. We on the other hand take care of the minor repairs at OUR EXPENSE. The property manager will just COLLECT the rent for you as we GUARANTEE rent, whether the property is occupied or not. If it becomes vacant, we will find a new tenant/buyer at OUR own time and expense.
If you have read up to this point then chances are you do see that this is a viable solution to your problem. Call is if you are interested in doing a LEASE/PURCHASE with us. Not sure? That is OK. We are positive that you will be surprised at how we can do this easily when you do call. We are problem solvers and we want to solve your problem. Give us a try. Call today.
John Morey, President
JP Real estate Group LLC