A Lease Purchase is essentially a purchase contract with pre-negotiated terms combined with a lease agreement. The purchaser leases the property for a specified period of time and then has the option of purchasing the property before the end of the agreement. Sales price, length of rental, rent credits, repairs and maintenance, etc., are all negotiated, much the same as it is in a conventional Real Estate transaction. A Lease Purchase, if properly utilized, is both the vendor's and purchaser's dream come true, because it can eliminate many of the negatives normally attributed to the selling and buying of Real Estate.
We specialize in selling homes using a Lease Purchase program to provide "win-win" solutions for purchasers and vendors. We obviously intend to make a profit; however, our profit comes from our purchaser, not you!
We only work with purchasers who can eventually qualify for a mortgage. We have worked with a number of mortgage companies in the past who know exactly what they are looking for in a prospective applicant.
Most of the time it simply makes more sense to have our purchaser lease the house while we are waiting to settle the deal. Perhaps the purchaser needs time to accumulate the deposit, while they settle on the sale of their old home in another city, or pay off the loan on a car before they can qualify. Whatever the reason, leasing to a purchaser not only assures you that you won't have to bear the burden of monthly mortgage payments prior to settlement, but it also makes it easier for the new purchaser to move forward with qualifying for the home.
Advantages of the Lease Purchase program.
1. A fair sales price for your property.
2. Large market of available purchasers at all times.
3. Better quality occupants because they are really the eventual purchasers. (They take good care of your property
simply because, at some point in time in the future, it will become their property).
4. All maintenance and repairs are taken care of by our company and the future purchaser.
5. No lengthy vacancies (unprotected properties). Puts a new occupant (resident/purchaser) into the property within days,
rather than having to wait weeks or even months, which is typical with conventional methods.
6. Lease Purchasing puts pre-qualified, reliable resident/purchasers in now-vacant or soon to be vacant
properties. Minimizes vandalism, theft, fire danger, etc.
7. Saves the vendor a lot of money, avoids double mortgage payments, rates, insurance, advertising, fees.
8. Helps vendor to qualify for a new home bank loan because you have a lease contract on your old house.
9. It separates your "Home For Sale" from all others and gives an advantage that makes it easier to sell.
The Bottom Line
We pay your monthly payments, take on all responsibility for the maintenance and repairs of your property, find a qualified purchaser, to buy and settle your asset before it becomes a liability. Trying to sell your house can at the very least be a hassle. People who have never tried to sell a home themselves may not understand all that's involved. The details, the time, the waiting, the people that don't show up after they have made an appointment, the haggling, the expenses, etc. Lease Purchase is a better way!
