Frequently Asked Questions

 

 

Real Estate Lease Options specializes in hassle-free, full-price lease option assignment, AKA Wholesale Lease Options. We've curated information to try to answer most questions that property owners and sellers may have about our services. We hope this helps, and if you want to discuss anything at all, please give us a ring at (833) 600-0918!

 

1. What is a Lease Purchase?

 

Lease Purchase is a lease agreement which gives tenant the option to purchase the property. The tenant/buyer pays monthly in which a part of those payments is applied to the price of the house. It allows you to have your mortgage paid for, as well as have extra cash flow monthly!

 

2. How do I get my asking price?

 

You are offering the tenant/buyer a fixed price (known as the strike price) sometime in the future. They are willing to pay a premium for your home. The reason why there's no negotiation is because you don't have to haggle over the price with the tenant/buyer. They know the price.

 

3. How much am I going to be charged?

 

ZERO! The lease purchase specialists that use our site are paid by the tenant/buyer through the assignment fee. It costs you nothing!

 

4. I’m uncomfortable about having “tenants” in my house. Will they ruin my house?

 

With the complete lease purchase system, they are intent on exercising their option.Because they are paying non-refundable money monthly toward the purchase of the house, they don't want to damage something that will eventually be theirs. Often the tenant/buyer may make upgrades or renovations to the property. The difference between just a tenant and a tenant/buyer is that they are proud of their house and they care about it.

 

5. How do you market to tenant/buyers?

 

Our marketing strategies are both traditional and digital. They come to us from print and digital ads, driving by our houses, referrals, or through our social media sites. We have numerous connections with other marketing sites that have developed our business into a powerhouse of marketing.

 

6. How can I lease option my house so quickly?

 

Most properties are lease purchased within 60 days.

 

7. Why shouldn’t I just go to a Realtor?

 

We actually recommend a realtor with your home as a lease purchase if possible as that exposes your home to an entire pool of people that may not be needing a lease purchase. However, keep in mind that Realtors usually charge 3-6% for selling your house. Using a lease purchase costs you absolutely nothing!

 

8. What about maintenance/repairs?

 

The tenant/buyer is responsible for most maintenance. We always suggest a Home Warranty to cover the repairs. The only repairs you are responsible for are the major repairs such as structural, and roof, which fall under your insurance as a homeowner.

 

9. What about insurance?

 

You should contact your insurance agent for your specific needs, however, it is now considered a rental/investment property, so you can lower your coverage so as not to include items inside the house.

 

10. What about the tax benefits?

 

Until the financing is complete for the tenant/buyer, the house will be an investment property for tax purposes. There are great tax advantages to lease purchasing, as a large part of the money you bring in is tax deferred. Your tax advisor can discuss your particular situation with you.

 

11. How soon can the tenant/buyers normally get a mortgage?

 

Every case is different, but most tenant/buyers that come to us can actually qualify within 6-8 months. There are just blemishes on their credit that need to be resolved. When this happens, we require that they begin the process with financial solutions companies before they move in. This reduces the amount of time needed before they qualifying for a mortgage.

 

12. I just don't feel easy about "renters".

 

The tenant/buyers that are approved are not what you would stereotypically think of as renters. They have great jobs, but something has happened in their past that made them feel they can't qualify for a mortgage.

 

13. How much cash flow can I expect every month?

 

It depends on your situation and your current mortgage. You may benefit from refinancing the property for a longer term or lower rate, thereby greatly increasing your monthly cash flow.

 

14. What if the tenant/buyer decides not to buy?

 

This is very unlikely, as the tenant/buyer has two major ties to the property. A financial tie, and an emotional tie. The financial tie comes from the fact that all of the money they have paid is non-refundable. This is normally thousands of dollars. The only way they will see that money again is if they close on the property. They would be better off to close on the property and then resell it themselves.

 

There are only three possible cases where the tenant decides not to buy your property.

1. Loss of or transfer of job

2. Death

3. Divorce

We have purposely set all into place to get the tenant/buyer to close on the property. From the non-refundable option fee payment, to the large rent credits, to immediately putting them in contact with a mortgage broker.

15. What if one of those situations occur, and they don't close on the property?

 

The house is still yours and in your name. You may decide to lease again, or sell it on your own or go through a Realtor. The decision is yours. You are not contractually bound to anyone in any way. But we are here to help you in anyway that we can.