FAQ

We know that buying and selling homes can be stressful, and so we want to help. Here's a list of our most frequently asked questions. If these don't answer your questions, give us a call today!

Take the First Step Here
I would like immediate assistance:
take the first step!
100% Privacy Guaranteed
  • What is a Lease Purchase?
  • Lease Purchase is simply a lease agreement with the option for the tenant to purchase the property. The tenant/buyer makes monthly payments, and a portion of those payments is applied to the price of the property. The Lease Purchase allows you to have your mortgage paid for, plus have extra cash flow every month in many cases.
  • What types of properties work for a Lease Purchase?
  • All types of properties. Any size. Any condition. Any situation. You don't need to make any repairs. If you're in financial distress or just ready to move on to the next phase and are having a hard time selling, we are confident that we can help. Just give us a call!
  • If I'm behind on my mortgage payments, can I still do a Lease Purchase?
  • Yes! We Lease Purchase homes in any type of financial situation. We work directly with the banks, are very familiar with the foreclosure process, and often Lease Purchase homes that are behind on payments..
  • How quickly can I have someone in my property?
  • With our aggressive marketing and the market that we currently face where fewer and fewer people can purchase traditionally, a lease purchase is rapidly becoming the best alternative and therefore most properties are lease purchased within 30-45 days.
  • I’m uneasy about having “tenants” in my property. Will they tear up my house?
  • The great thing about the tenant/buyer in a Lease Purchase is that with the complete lease purchase system, they are intent on exercising their option. They realize that they are paying non-refundable money every month toward the purchase of the house. They don't want to damage something that will be theirs. Often the tenant/buyer may make upgrades or renovations to the property. The difference between just a tenant and a tenant/buyer is that they are proud of their house and they care about it. It is similar to renting a car, and leasing a luxury car. If you rent a car, you are not too concerned if you hit a curb or something happens to it. You know you are going to return it and walk away. However, if you put down thousands of non-refundable dollars to lease an expensive car that could soon be yours, you are going to take VERY good care of it.
  • What about maintenance?
  • The tenant/buyer is responsible for most maintenance. Plus, they will get a Home Warranty so that the repairs are covered. The only repairs you are responsible for are the major repairs such as structural, and roof, which fall under your insurance as a homeowner.
  • What about insurance?
  • You should contact your insurance agent for your specific needs, however, it is now considered a rental/investment property, and you can lower your coverage so as not to include items inside the house.
  • What about the taxes?
  • Until the financing is complete for the tenant/buyer, the house is considered an investment property for tax purposes. There are great tax advantages to lease purchasing, including the fact that a large part of the money you bring in is tax-deferred. Your tax advisor can discuss your particular situation with you.
  • How soon can the tenant/buyers normally get a mortgage?
  • Every case is different, but most tenant/buyers that come to us can actually qualify within 6-10 months because there are typically just blemishes on their credit that need to be resolved or removed. If the tenant/buyers need to have discrepancies on their report resolved, we require that they begin the process with our preferred credit repair company before they are able to move in. This way we know the process is started, and it reduces the amount of time needed before they can qualify for a mortgage.
  • How much cash flow can I expect every month?
  • Of course, that depends on your situation and your current mortgage. Depending on your situation, you may benefit from refinancing the property for a longer term or lower rate, thereby greatly increasing your monthly cash flow.
  • What if the tenant/buyer decides not to buy?
  • Though possible this is highly unlikely outside of a job loss or transfer, death or divorce, as the tenant/buyer has two major ties to the property. A financial tie, and an emotional tie. The financial tie comes from the fact that all of the money they have paid is non-refundable. This is normally thousands of dollars in most cases. The only way they will see that money again is if they close on the property. They would be better off closing on the property and then resell it themselves. We have purposely put everything into place in our program to get the tenant/buyer to close on the property. From the non-refundable option fee payment, to the large rent credits, to immediately putting them in contact with a mortgage lender.
  • What if one of those situations occur, and they don't close on the property?
  • If for some reason they decided they couldn't close on the property, the house is still yours and in your name. You may decide to use a Lease Purchase again, or you may decide to try to sell it on your own or go through a Realtor. The decision is yours. You are not contractually bound to anyone in any way. But we are here to help you in any way that we can.

We Are A Real Estate solutions Company

We will not be acting as your real estate agent or broker if you buy a property or sell your property through our company. We are excited to potentially work with you directly OR if you are represented by an agent or broker. We are focused on providing the best possible solution with everyone we work with. If you have additional questions on agencies please contact your local real estate commission.

 

Equal Opportunity Housing.