"Here Are The
About Our Program"
My name is Gar May. I'm in bit of a pinch and I
need your help. I've got some buyers who need a house... actually,
I've got 59 buyers who need a house.
Here's the story... I'm
a real estate investor and I advertise to find people who want to
lease option my houses. Well... my marketing worked amazingly well
and I found a lot more buyers than I had houses to sell. So... I
wanted to find a way to help these folks find a home and to make a
little money on all the work I've done to find them and qualify
them... so I set up this quick web page and started calling
landlords like you in the area.
My buyers want to live in the
area, but don't qualify for a mortgage right now. That means they
would be buying from you "Rent To Own."
They can afford the
monthly payment and will qualify within 1 or 2 years. We had every
one of them talk to a mortgage broker before we put them on the
list... I wanted to know exactly how long it would take them before
they did qualify and could take out a new loan and pay off the
These buyers will also give you full market value for
your house and full market rent during the lease period.
addition to that, they tend to take care of the property better than
a normal tenant because they see it as their property. And you will
have a written agreement with them that makes them responsible for
minor repairs to the house. So if the toilet stops up, or there is a
drippy faucet they don't call you in the middle of the night. It
saves a lot of landlord headaches.
And if the worst happens
and they default, they lose their option and you can evict them. The
beauty is that the percentage of evictions on this type of sale is
way below normal tenant eviction rates... so it's a lot safer.
By the way, none of this costs you a dime. I'm paid by the
As far as price goes...It doesn't really matter to me
how much you want for it, but if we put it much over market value, I
won't be able to find a buyer.
But there is no reason we
shouldn't be able to get you full market value or maybe a little
more because the way we are selling it. My buyers are pretty
So... if you are interested, please let me know.
We can talk in person and I'll answer any of your questions. As soon
as you give me the okay, I'll send out an email to my list about
your house. I have sold houses in one day with this list, so don't
be surprised if things happen pretty fast after you give me the
Let me know what you think. Fill out the form here.
Whatever you decide, I wish you the very best of all good
PS - Just a quick note: Although I am a licensed
real estate agent, I am not
soliciting you to list your property or represent you. I am acting
as a buyer/investor and only represent myself in any transaction.
FAQ (Frequently Asked Questions)
What sort of down payments do most
We try to get $10k or more as a lease
option fee - more if we can. This is where we make our money so our
goal is to get as much as possible. Also, the more we get as a down
payment, the more stable the tenant is for you, so it benefits us
What is the number of people
who walk away from the house when the lease is over (either
because they are unable to get regular financing or decide they no
longer want the home.)
Less than 30% of lease option buyers
will exercise the option. So it is likely that they will not buy it
at the end. But there are some real benefits -
1. It doesn't
cost you a dime to fill the property. That is what we do and we are
paid by the buyer.
2. You no longer have to lose your
mortgage or property tax payment every month since you will offset
it with the monthly income.
3. You don't have to do minor
maintenance on the property - the new buyer/tenant is responsible
for minor repairs.
4. You don't pay for utilities.
They don't call you like regular tenants.
6. You get a 3 year
lease rather than 1 year for most renters.
7. You get a more
stable tenant than a regular renter because the folks that move in
see themselves as owners rather than renters. Remember the old
adage, "You don't wash a rental car." Same goes for buyers vs.
tenants of houses.
person walks away from the lease what becomes of their down payment?
It is non-refundable to the buyer. When they end their lease, we
would be happy to help you fill the property again - we have a very
active and growing list of buyers.
Who is responsible for upkeep and minor
maintenance on the home.
This is all the
responsibility of the buyers.
Since the home has a mortgage are there any problems with leasing
that would cause the "Due on sale" clause of the mortgage to be
invoked by the lender?
No, a lender would see this as
a lease, not a transfer of ownership.
Because it's a lease, does the person
leasing the home get the homestead exemption or would it be treated
like a rental property, and if so, at what point would the taxes
would go up without that exemption.
It would be
treated like a rental property so eventually the exemptions would be
removed and the taxes would go up.
But - you also get the
benefits of owning rental property. I know that some people think
owning rental property is nuts, but I own a lot of rental property
and I know how easy it is to handle if you set it up right.
You will get several financial benefits
from keeping your property and selling it as a lease option:
1. Depreciation on the
property. This is a good thing. You can deduct 3.64% of the
tax basis (27.5 years depreciation) of the improvement of the
property against either active or passive income (depending on how
you are set up). This would be real cash savings on your taxes each
year. (talk to your CPA for details about how this works).
2. Appreciation of the property.
Over time, the value of the property goes up. I know it's been a
rough patch in the market these last few years, but the likelihood
is that the values will eventually go back up. This will make it
possible for you to sell the property in the future and make a
profit rather than have the potential (in many cases) of actually
having to come to closing with cash to sell it.
3. Buy down of the mortgage over time.
Over time, the note will pay itself off. You may have years before
this happens, but every month a little bit of your payment goes
toward the principle and you will build equity.
4. Rents go up over time as a hedge
against inflation. The thing I love best about my investment
property is that the rents go up. I know of no other investment that
has an automatic hedge against inflation like this. Most houses have
30 year fixed payments, but as rents go up, if you apply the extra
income to the mortgage each month, you will likely pay it off in
10-15 years because of the increased cash flow.
There are also some negatives to
1. Risk of
vacancy. Over time, you will have vacancies. Each month the
property is vacant, you lose money. The beauty of working with us is
that we have buyers and can fill it very quickly. The risk of
selling it on the open market is often much higher than selling it
through us with a Lease Option. Keeping it on the open market, you
must pay the mortgage, utilities, taxes, insurance, grass cutting,
maintenance and wear and tear that comes from keeping a property
vacant (did you know that the plumbing will often deteriorate in a
vacant house because of lack of use?).
2. Risk of damage from tenants.
There is always going to be wear and tear on a house when someone
lives in it. When they move out, you will need to have it cleaned up
before you sell it again. It's also possible that someone will
deliberately 'trash' your house. This is very rare and is covered by
Management headaches. I hate managing property and make a
point NEVER to talk to any of my tenants. I have a competent
property manager do this for me. The biggest reason people say they
hate real estate investing is because they manage their own
property. This, in my opinion just doesn't make sense. Let someone
else do it for you - they typically charge about 10% of the rent.
Usually properties sold "Rent to Own" are on "Management Auto-Pilot"
since the tenant buyer plans to buy the property.
4. Picking a bad buyer/tenant.
This is another mistake most newbie investors make - they screw up
on tenant selection. That is why we put them through a qualification
process that vastly improves the tenant/buyer's success rate.
The downside of "Rent to Own" tenant buyers, in my opinion, is
much smaller than the upside - especially if the alternative is a
vacant house. We know that in a good market, 33% of all properties
listed for sale on the MLS do NOT sell. Right now, that percentage
is much higher. We also know they will not sell for more than market
value and that the cost to sell with a Realtor will run you about
10% after commissions, closing costs, repairs, and negotiation. For
many people who are close to market value on their mortgage, this
cost just isn't possible.
buyers get financing when it's time to exercise their option?
They go to any conventional lender and apply for a loan. The
reason they are buying "Rent To Buy" right now is because they do
not qualify for a conventional loan. Since 2007, conventional loans
have become much harder to qualify for - ask any mortgage broker.
That is why so many properties that are for sale by real estate
brokers don't sell. Buyers just can't get loans without almost
perfect credit. Appraisals have also been a problem recently, so
even if the Buyer qualifies, if the appraisal doesn't come in, they
won't be able to finance it.
Our goal is to help good,
responsible people get into a home. People who will take care of it
and treat it like their own. We've had good luck finding just that
over the years.
If the Buyer exercises the option, that's
great and you make your money. If they don't, the advantages of
having someone pay your mortgage and buy a house for you are
I believe that selling the property as a lease
option (Rent to Own) is the solution that is the least painful. In
fact, it may end up being the best financial decision you ever make.
I hope these answers give you a better idea of how this all
works and helps you decide if it is for you or not.
to call us if you have additional questions. If you are ready to go,
this link and fill out the form and we'll get started
immediately. We'll blast out the details of your property to our
list and get it transferred to one of our buyer/tenants as soon as