Leasing To Buy is a real estate company that specializes in Lease Purchasing. We've put together the following information to try to answer most questions that property owners and sellers may have about Lease Purchasing. We hope this helps, and if you want to discuss anything in this package, please give us a ring. We'd be happy to hear from you. Contact us.

What is a Lease Purchase?

A 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 house. The Lease Purchase allows you to have your mortgage paid for, plus have extra cash flow every month in many cases.

How do I get my asking price?

You are offering the tenant/buyer a set price (known as the strike price) at some future date. They are willing to pay a premium for your home. You don't have to haggle over the price with the tenant/buyer. They know the price and they know there is no negotiation.

How much are you going to charge me?

Absolutely nothing!! We get paid by the tenant/buyer in an assignment fee, or by subletting. We assign the Lease Option to the tenant/buyer and they pay us an assignment fee. It costs you nothing!

I’m uneasy about having “tenants” in my house. Will they tear up my house?

The great thing about the tenant/buyer in a Lease Purchase, is that with our program, 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.

Where do find your tenant/buyers?

We are always marketing for tenant/buyers. They come to us from newspaper ads, driving by our houses, referrals, or finding us on the Internet.

How can you lease option my house so quickly?

Of course, we can't guarantee that we can assign the option in 60 days or less, but due to the large number of people we have in our database that want to lease purchase homes through us, we can often find tenant/buyers quickly.

Why shouldn’t I use a Realtor?

You can use a Realtor if you would like, but keep in mind that Realtors charge 3-6% typically for selling your house. Using Leasing To Buy costs you absolutely nothing! We do actually work with some Realtors to help you, and will refer you to a Realtor if we feel our program isn’t right for you, or that your situation dictates using their services.

What about the maintenance?

The tenant/buyer is responsible for most maintenance. Plus, we always recommend 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 tax benefits?

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 varies some, but most tenant/buyers that come to us can actually qualify within 6-8 months. There are 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 Envision Financial Solutions 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.

I just don't feel easy about "renters". You know how "renters" are.

The tenant/buyers we bring in or that come to us are not what you would typically think of as renters. The people that come to us are great people with great jobs, but something has happened in the past that has caused them to feel as if they can't qualify for a mortgage. Most of the people that come to us have been paying quite a bit to lease nice homes in nice neighborhoods for sometime. The family and kids are established in the neighborhoods and schools, and now the family is tired of leasing and ready to lease purchase, but they just need a small cushion of time.

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?

This is highly unlikely, 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 to close on the property and then resell it themselves.

There are only three cases that we have come up with where someone may not purchase the property, and they are all pretty catastrophic situations.

• 1) Loss of or transfer of job
• 2) Death
• 3) Divorce

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 broker.

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 our services 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 us in any way. But we are here to help you in anyway that we can.