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Summary Of How
We Lease Purchase Homes
First of all,
a Lease Purchase is essentially a purchasing technique that combines a basic lease
agreement with an option-to-purchase agreement.
The Lease Purchase contract is the quickest,
easiest and least expensive way to buy, sell or invest in real
estate. It replaces the typical adversarial relationship that
usually exists between buyers and sellers with a win-win method of
transferring real estate ownership.
In
my opinion, selling houses on a lease option is the most amazing
and creative way to sell property in most situations, however,
it probably should not be your first choice as far as creative
buying techniques are concerned. The reason for this is
simple...when you buy on a lease option you do not have full
ownership of the subject property until the deed has changed
hands. As you are probably aware, that does not happen until the
original owner is paid in full. I believe a much better way to buy
property is “subject to” an existing mortgage.
After
I have acquired a new piece of property, whether it has been
purchased subject to an existing mortgage, bought outright or I
have entered into a lease with option to purchase with a seller,
as I mentioned above, my single most favorite way to sell property
is on a lease option.
There
are several reasons why I prefer this technique of selling over
others.
1-
I retain
ownership of the property while increasing my monthly cash flow
without having to deal with minor maintenance issues.
2-
I know I
will get a higher price for the property than the current market
value of the house.
3-
I will also
receive a higher monthly rental payment than I would if I were to
rent the house to a tenant.
For
discussion purposes, I will begin illustrating this technique with
marketing the property and take you through moving the
tenant/buyers into the home.
I
start off by running a Classified ad under the heading “Rent to
Own” in the San Diego Sunday paper. (If your local newspaper
does not have a “Rent to Own” section then run the ad under
both the “Homes For Sale” and “Homes For Rent” section of
the paper.)
My
ad will state the number of bedrooms and bathrooms, a couple of
benefits (i.e. Ocean view, steps to the beach etc), the monthly
rent, percent (or amount of) rent credit, and that I will carry
the financing. At the bottom of the ad I put "24 Hour
Recorded Message" and my voice mail number.
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Sample
Ad: |
OCEANSIDE.
2/2 Condo Ocean Vu Steps to bch $1797 w/ 50%
rent credit OWC
24 Hr rec. msg 858-xxx-xxxx |
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After
placing the ad, my phone begins to ring. I recommend using a
"24 Hour Recorded Message" voice mail system to
pre-qualify all callers. When an ad states "Recorded
Message" the prospect is more willing to make the phone call.
They are not worried about a "live" person answering the
phone and trying to sell them something, therefore I get more
people to call.
On
the voice mail I explain the benefits of the home. I tell them
that we are reasonable, negotiable, flexible and generous with our
“rent to own” terms and that we will do our very best to work
within their budget.
I
then tell them the address of the property and that after they
have had a chance to drive by to contact me if they are
interested to set up a time to show them the inside. I always have
them drive by to look at the house exterior by themselves because I do not want to
waste my time showing houses to prospects all day.
After
they have seen the outside of the house, they contact me to view
the inside and to discuss terms.
What
is a Lease Purchase Contract?
Who
Are These People Who Are Trying To Keep The Lease Purchase
Alternative From You?
Features
and Benefits of Lease Purchase
Main
Risks of The Lease Purchase Agreement for Tenant Buyer
Main
Risks of the Lease Purchase Agreement for the Landlord
Seller
FAQ: Lease Purchase Contract
Sandwich
Lease Option
Sandwich
Lease Option Insurance What
We Do And How Our Program Works The Secrets to Selling Your Home
in 9 Days or Less |
