Yes, you can stop renting today and lease-option a home of your DREAMS with a lease-option. Lease-options are a true win/win strategy in the field of real estate.
WHAT IS A LEASE-OPTION?
Simply defined, a lease-purchase is a lease agreement, combined with a purchase contract. Through a lease-purchase agreement, a buyer leases a property (usually for 1-3 years) and then has the right (or option) to purchase the property on or before the end of that agreement. During the lease period, the seller applies a percentage of the monthly payments received from the buyer, along with the down payment or “option money” towards the purchase price. This arrangement gives the buyer time to save enough cash, or to clean up their credit to take title to the property on or before the end of the lease-purchase period by qualifying for a new loan, assuming an existing loan or by working out some type of owner financing.
WHAT ARE MY BENEFITS AS A TENANT/BUYER?
• Very low down payment (1%-5% vs. 10% to 30%).
• No loan qualification.
• Down payment is credited.
• Price protection.
• Profits from any appreciation.
• Time to check out the home and neighborhood.
• Time to obtain the best financing.
• No taxes to pay.
• Buys time to repair credit or develop needed down payment.
• Quick move in time (no waiting for bank approval).
• Controlling property is better than owning property.
• Sell the home if you don’t want to buy, for a profit.
• You can live in the home of your dreams today and buy later down the road.
• Never have to rent again.
• Doesn't have to wait for his house to sell or drop the price low to get rid of it. A buyer can move into a lease-purchase home and wait for his house to sell. Then, he can exercise his option and purchase the new home he is lease purchasing.
HOW DOES A LEASE-PURCHASE STACK UP AGAINST RENTING OR BUYING A HOME?
RENT BUY LEASE -PURCHASE
MONTHLY PAYMENT $1,000 $1,000 $1,000
CASH PAID, YEAR END $12,000 $12,000 $12,000
EQUITY, YEAR END $0 $250 $3,000
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