A Lease Purchase is simply a lease agreement with the option for the tenant to purchase the property. The tenant/buyer makes monthly payments directly to the seller, and within 12 months is obtaining permanent financing. The Lease Purchase allows you to have your mortgage paid for, plus have extra cash flow every month in many cases.

You are offering the tenant/buyer a set price (known as the Option Price) at some future date. The buyers are more concerned about terms than price, so 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.

Absolutely nothing!! The lease purchase specialists that utilize our system and structure get paid by the tenant/buyer in an assignment fee. They assign the Lease Option to the tenant/buyer and they pay the lease purchase company an assignment fee. It costs you nothing!

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, vs. 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.

We are always marketing for tenant/buyers. We utilize a number of websites that we market to, as well as directional signs and signs in the yard, as well as social media such as Facebook Marketplace.

We actually recommend USING a Realtor while offering your home as a lease purchase if at all possible because that keeps your house exposed to an entire pool of people that may not be needing a lease purchase, but the MLS is NOT the place that people that need a lease purchase start their search. However, keep in mind that Realtors charge 3-6% typically for selling your house. Using a lease purchase costs you absolutely nothing! The Marketing Affiliates actually work with some Realtors to help you, and will refer you to a Realtor if they feel our program isn’t right for you, or that your situation dictates using their services.

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.

Every case varies some, but most tenant/buyers that come to us can actually qualify within 10-12 months. There may just be old 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 partner lender Total Lending 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.

Keep in mind, approx. 60% of the Tenant/Buyers that come thru us have great credit and strong financials, but they are simply self employed business owners that need time to get things in place with their CPA to obtain financing.

The tenant/buyers that are approved 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.

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.

• Loss of or transfer of job
• Death
• 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.

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.