Lease Purchase Solutions, Ltd.



Home   Sellers   Buyers  Investors   Gurus  Calculators  Contact Us  Site Map  


SPECIAL REPORT

Discover How Lease/Purchase Agreements
(Rent to Buy)
Will Work for You!

Compliments of

Lease Purchase Solutions, Ltd.

Gar C. May Real Estate Broker CA DRE # 479003

Friends,

Wish you had a tenant for your house until it’s sold?

         Because it’s not selling fast enough?  Won’t bring the right price?  Hasn’t inspired your Realtor® to find qualified buyers?   And if you had a tenant, would you enjoy being a landlord?  Would you enjoy collecting late monthly rents?  Enjoy hearing tenant complaints at 8:00 pm?  Enjoy cleaning up the damage when tenants move out?

         Maybe you’d like rent payments to cover your mortgage during your Realtor's ® 90-day listing period.   Any interested renters?  Probably not for just 90 days.  And if there were, would the tenants cooperate when you arrive at 9:00 a.m. to show it to prospective buyers?   Would they move out at the right time?

         You could leave your house vacant.  You’ll pay two or three mortgage payments, haggle with your insurance company when it cancels your homeowner’s policy after 30 days, (Yep), and hope the place doesn’t burn down. 

         Summary—You want to get the right price for your home but you don’t want the hassle of renting your property.  Yet, you need to do something NOW!  Here’s the solution—a  Lease/Purchase.

What’s A Lease/Purchase?


Lease


+


Purchase Offer


=


Lease Purchase Agreement

         A Lease/Purchase (Rent to Own) is a Revolutionary new way of getting above-market rent and selling your home at the same time.  (It is actually a "Creative Financing Technique" that enables the property owner to sell their home quickly for Full Fair Market Value.) No doubt, you have rented a house or apartment in the past, so you are familiar with a “Lease.”  Since you also bought a house, you are familiar with a “Purchase Offer.”  The Lease/Purchase Agreement is a combination of the two—it’s an agreement that combines the right of occupying property (the Lease) with the right to purchase the property at an agreed upon price (the Purchase Offer).

        The Lease/Purchase brings two parties together.  The owner, like you, wants a good price for his home and wants a quick sale; the buyer, like our client, wants a nice place to live but isn’t quite ready to qualify for the large loan that today’s prices demand.   This is understandable, given recent increases in home values. 

       The good news is that oftentimes our client is willing to pay above-market rent.  He will be motivated to do this if you grant him the right to buy your house in
12 - 24 months when he qualifies for his loan.  (Technically, this is called “an option to buy,” but its just part of our Lease/Purchase Agreement.)  While he is waiting to qualify, he will pay you rent, occupy your home, and incidentally, will maintain it with pride, because after all, he’s the future owner.

        You win two ways.  While other people are collecting low rents or “waiting for the right price,” you’re collecting high rents and enjoying YOUR ASKING PRICE.  This, essentially, is what our Lease/Purchase accomplishes.

How does the Lease/Purchase work?

  Finding the Right Tenant-Buyer

  • First, we screen potential Tenant-Buyers to identify a qualified and reliable individual—someone who will take care of your property as if it were his or her own.
    • A “Rent to Buy” tenant has a different mentality than regular tenants.  He takes care of your property because he considers himself the Future Owner.   
    • Consequently, the Tenant-Buyer will provide a written agreement to accept responsibility for all minor repairs and maintenance.  This means he won’t call you when a faucet leaks or a sink overflows!  He’ll get it done himself!
  • Second, our Tenant-Buyer may not qualify for a loan right now but he can afford to cover most of your mortgage payment.
  • To ensure this, one of our local lenders will analyze the Tenant-Buyer’s financial situation to make sure the Tenant-Buyer has sufficient cash flow to satisfy all his obligations; plus, that it is likely Tenant-Buyer will qualify for his loan when the time comes.   
  • Once we have a top candidate, we’re ready to execute documents.

  Lease Option Procedures

  • First, the Tenant-Buyer signs the 12 month Lease Option.  This is where you grant him the right to purchase the property in 12 months and where he agrees to pay your asking price. 
  • We use either the California Association of Realtors® “Lease and Option to Purchase Agreements” or our own Standard Agreements.
  • Once the Lease Option Agreement is signed by the Tenant-Buyer we collect our fee from him and we assign the agreement to you.  (You pay no fees—none whatsoever.)
  • Next, the Tenant-Buyer will give you a security deposit and then pay your monthly lease amount.  He will continue paying the monthly lease until either he exercises his option to purchase or until the lease term expires.
  • If the Tenant-Buyer wants to extend the Lease Option beyond the first 12 month term:
    1. He will pay you a 5% increase in Monthly rent; and
    1. The price of his purchase option will be increased by the greater of the following:
      •  5% of the purchase price, or,
      • 50% of the percentage increase in the value of the average homes in the zip code where your home is located; and
    1. He will pay an additional 1% to 2% of the new Option Price.
      • This amount will be applied toward the purchase price of the property if the Tenant-Buyer exercises his option to purchase.
      • In the event that he does not exercise his option, you can keep this money, because it is non-refundable.
  • When a sufficient period of time has passed, the tenant-buyer will qualify for his loan, the funds will be disbursed, and you will receive your full sales price.  A Lease Option (Rent 2 Own) is a "Creative Financing Technique" for property owners that enables them to sell their home quickly for their FULL Fair Market Value asking price.

How Else Do You Benefit?

            As soon as we initiate a lease option, your funds are free from burdensome mortgage payments and you are free to move where ever you want.  Not only that, you have the satisfaction of knowing you got your sales price—not someone else’s.   But we’re not through—you have some additional benefits in store.  Here they are:  

  • You will avoid paying the customary 5%-6% real estate commission upon sale of your home.  (On a $400,000 condo this amounts to $24,000!)

  • You will avoid closing costs—the Tenant-Buyer pays all your closing costs, approximately 1.5% of the sales price.  (On a $400,000 condo, this amounts to $6,000!)
  •   You won’t have to collect the rent!! That’s right—we’ve appointed a local Trustee Service to collect all rents and place them in your service account.  The Trustee Service will record the date of each rent payment, collect late fees (if any), and notify you if any payments are late.   
  • You needn’t make monthly mortgage payments!!  The Trustee Service will do it, drawing on the rents that have been placed in your service account.  This feature saves you time, and provides the buyer with assurance that the mortgage payments are being made.  
    • (Of course, if you prefer to do these chores yourself, you are more than welcome.  Or you can make similar arrangements with another Trustee Service.)
  • As you can see, this program really streamlines your life.

Our Philosophy    

        We enjoy our niche in the real estate market.  We provide creative solutions for people who have many different goals.  The market changes, and so do our solutions.  One thing is constant, the fact that we must serve your interests.  Let us know what they are, and we can adjust our program accordingly.  

        Need references?  We will gladly provide you with names of people who we have worked with in the past as well as local professionals with whom we deal. 

 

Best of Success,

Gar C. May
Real Estate Broker 
CA DRE # 479003
gmay@san.rr.com

858-272-5510 
eXTReMe Tracker

P.S.  Any questions?  Be sure to ask for me personally when you call.  Thanks!  

 Mandatory Real Estate Agency Disclosure to Landlord/Seller pdf                Home  

You Will Need Adobe Reader to the Read pdf files. If you do not have Adobe Reader click the Get Adobe Reader link to download a FREE version