||Market Your Real Estate in Magical Ways.
The Lease Option (also called Lease Purchase or Rent to Own) is a
creative financing technique to sell real estate quickly and for top
dollar. It has been used for many years as an alternative to renting or an outright sale.
The program is very helpful to owners and real estate investors who want to put their rental properties on "management auto pilot".
- Sell Your Home For Full Fair Market Value in Days Rather Than
Months. You can usually sell your home with a "Rent to
Own" agreement faster than you can either rent or sell your home
- Top Sales Price, Even if Demand is Low for Your Home: You
attract to your home more tenant/buyers who are willing to pay a
premium because of the terms and value you are offering.
- Higher than Usual Rent: Since you are flexible on your terms
and are offering value, you can demand a higher than usual rent.
- Positive Cash Flow: (Or minimize negative cash flow) Since you can demand a higher than usual
rent, this will increase your cash flow.
- Non-refundable Option Consideration Up Front/Minimum Risk:
When a tenant/buyer executes (signs) a lease purchase contract, you
receive an option deposit that is yours to keep if they default on the
deal or decide not to buy.
- No Realtor Commissions: Since you are selling your home
yourself, you will avoid paying a 5-7% Realtor commission. In the case
of For-Sale-By-Owners, you save on advertising costs because you will
have your home lease purchased more quickly.
- Attraction of the Highest Quality Tenants: You are dealing
with tenant/buyers who have a vested interest in the home, therefore,
they think of themselves as homeowners and tend to take better care of
it. They pay their rent on time and take care of your home as if it were
- Tax Shelter is Maintained: You remain on the deed until the
option is exercised and, consequently, you maintain all of the tax
benefits of ownership.
- Minimal Maintenance and Landlording: Tenants who have a
vested interest and believe they are a homeowner may feel a
"pride of ownership" that encourages them to pay on time,
perform maintenance, and make improvements to your home. Additionally,
you can delegate maintenance to the tenant in your lease purchase
- Larger Market of Buyers: You are marketing your home not only
to buyers, but also to renters and investors. These three groups make
up 85% of those seeking to acquire real estate.
- No Long Vacancies: Your phone will ring off the hook when you
advertise that your home is a lease purchase (Rent to Own) deal. Typical turnover time is
days or weeks rather than months or years.
- Peace of Mind: It is safer than conventional rentals because
of the quality of the tenant/buyers and their vested interest in your
home. It also means that someone is living on-site who will watch and
guard your home against vandalism, fire, etc.