Discover How Lease/Purchase Will Work for You!
Have you ever dealt with bad renters? Late payments? Stains on the carpet? Calls late at night about a broken toilet? Land lording is not a fun game, especially when you have a nice home and bad tenants.
Here's another scenario: You want to sell your home, but it's not moving as fast as you would like (or as fast as the "fast-talking"realtor who convinced you to list it) would like. You have thought about renting it to cover your mortgage payment, but nobody wants a short-term rental with no idea when they have to move out. In addition, what if the tenant WILL NOT move out when you have it sold?
Therefore, you decide to leave it vacant. You make two, three, even four mortgage payments. Your insurance company cancels your homeowner's policy because it has been vacant for more than 30 days (it is true, read your policy!). You do not want to severely discount the price, yet you need to do something NOW! Here is the solution - Lease/Purchase.
WHAT IS LEASE/PURCHASE?
LEASE + PURCHASE OFFER = LEASE/PURCHASE AGREEMENT
At some time in your life, you have rented a house or apartment, so you are familiar with a lease agreement. If you have ever bought or sold a house, you are familiar with a purchase offer. The lease/purchase agreement is a hybrid of the two - a lease agreement combined with a purchase offer (sometimes called an "option," that is, the right to buy at an agreed upon price).
Here's an example of how lease/purchase works. Let's say you have a house worth $100,000. The "going rent" in your market for that house may be about $800 per month. A lease/purchase agreement would read essentially as follows:
Lease Term: Two Years Monthly Rent: $800
Purchase Price: $100,000 Rent Credit: $400/month
Usually, part of the monthly rent will be credited towards the price of the house. In the above example, 50% or $400 per month is being credited. So if the tenant decides to buy after one year (lawyers call this "exercising their option to buy"), they would pay $100,000 - $4,800 = $95,200. If the tenant/buyer does not purchase the property, the owner would keep all of the monthly rent. The best part is, the $400/month is considered "option consideration" by the IRS and does not have to be reported as income until the house is sold or the lease/purchase agreement expires!
WHAT'S YOUR ANGLE?
You may be thinking to yourself, "I appreciate the Real Estate lesson, but what's your angle"? First, we are not real estate agents, but a group of private individuals, like you. We deal wholesale direct with the public. We are in the business of privately leasing, buying, fixing, marketing and selling houses.
What we offer is a unique lease/purchase plan that will work for you. We will lease/purchase the property from you at an agreed upon purchase price that is good for the term of the lease. We will find a suitable tenant/buyer whom we will pre-qualify. When our tenant/buyer is ready to qualify for a loan, we buy the house from you for all cash. There is no fee or commission charged to you. We make our profit by offering the tenant/buyer a price that is higher than the price we pay you. It is a Win/Win situation for everyone involved.
As you can see, there are many benefits a lease/purchase can provide you, including:
· Immediate relief from mortgage payments
· Fast Solution to the "Nice House in a Slow Market" scenario
· Guaranteed no vacancy
· No need to severely discount the purchase price
· Tax deduction (since the property can be treated as "rental" for tax purposes)
WHY DON'T I JUST LIST IT WITH A REAL ESTATE AGENT?
It can't hurt to list with a real estate agent or broker. However, most real estate brokers simply "list' your property. This means they stick it in the multiple listing computer and wait for a bite. The first problem with this method is that there are thousands of other homes in the computer that read just like yours. If you want to move your house FAST, you have to offer something different. The lease/purchase is that special something that makes your house attractive.
The second problem is that most Realtors don't know what a lease/purchase is, how it works, and how to market such a deal. Most Realtors will not get involved with a lease/purchase, because they simply want a higher fee (after all, they have to make enough money to pay for those large display ads with their picture on it!).
When we agree with you to lease/purchase your property, we take it seriously. We treat your house like it's our own. We brainstorm day and night to think of creative ways to move it quickly, so you can get on with your life!
WHAT IF THE TENANT TEARS UP MY HOUSE?
There's no way we can guarantee you a tenant won't damage your house since we won't be living with them. However, under our agreement, if that happened, we would repair it at our expense. Our objective is to find a buyer who will eventually qualify for a loan, and not a "tenant". It has been our experience that lease/purchase buyers treat the house as if it was their own, so damages are rarely a problem.
WHY DON'T I JUST HIRE A PROPERTY MANAGER?
A property management company charges about 10% of the monthly rent to "manage" your property. We use the word "manage" loosely because managing involves calling a handyman, plumber or other expensive professional every time something needs to be fixed, at YOUR EXPENSE. We take care of all minor repairs at our expense. In addition, a property manager only COLLECTS rent . . . we GUARANTEE rent, whether or not the property is occupied. If it becomes vacant, we will find a new tenant/buyer at OUR expense of time and money.
HOW CAN I TRUST YOU WITH MY HOUSE?
You may be thinking to yourself, "how can I trust these people with my house"? Good question. We understand your concern. We will gladly provide you with names of people who we have done business with in the past as well as people who we are helping right now. Just give us a call - if you don't feel comfortable doing business with us, we won't be offended. We want you to be confident and be able to sleep at night without worrying.
I know this is a lot of information to digest at once, but if you're still with us at this point, chances are you're interested in doing whatever it takes to get your house sold quickly! If we can't do business together, that is o.k. We can still be friends and you will have at least three new ways to sell your house quickly. In addition, we honestly believe you'll be pleasantly surprised when you do call . . . we specialize in solutions! By calling, you will give us the chance to be a part of your solution. Give us a try.
If you want an alternative to the stale, conventional ways of selling your home, pick up the phone and call us now! Our company is about results. We are confident that our program will work for you.
