Lease Options – A Unique Solution for Both Sellers and
Buyers
Lease Options has fast become the
seller’s first choice as an alternative to the traditional
way of selling a home. For those who are unable to sell
through a realtor a lease option is the fastest way with
the least amount of hassles to sell a house.
Definition:
A Lease Option is a unique blend of a
“lease agreement” with a standard “purchase and sales
contract”. It gives the tenant-buyer the right to
purchase a home during the lease period, usually in 12 to
24 months, although longer terms (up to 60 months) are not
uncommon. However, our objective is to get to the closing
table to buy your house as quickly as possible.
The Lessee:
As of the origination of the lease
option, we, as the lessee, are responsible for
guaranteeing your payments and handling all repairs. We
will then place one of our pre-approved clients in the
home who intend to buy the property from us. When they
do, we will cash you out at our agreed price.
Benefits to Sellers and why using
a lease option to sell their home makes sense:
1)
Debt relief – when the mortgage is too much for
them to carry anymore
2)
Get full or near retail price – sellers can receive
full retail price in many cases
3)
Tax benefits – seller continues to deduct interest
until home is sold
4)
No more repairs – we will take care of repairs
after the first 60 days
5)
Qualify for mortgage of next home – lenders
consider Lease Options as evidence that their current debt
is covered until the house sells. No double mortgage to
worry about
6)
No fees – no fees for us to manage, market, buy or
sell their home
7)
Job Transfer – allows a worry-free transition so
that the owner can move away and purchase a new home
8)
Seller does not need cash – sometimes owner is not
in a rush to get cash out
9)
No equity available – seller can sell via lease
option and not worry about losing money at closing
10)
Loss of Job – a quick way to have someone take over
payments and prevent future financial hardship, such as
foreclosure
11)
Inherited property – opportunity to receive good
cash flow
Benefits to Buyers who purchase a
home using lease options:
1)
Helps unconventional buyers who cannot qualify for
a mortgage due to:
a.
Poor credit
b.
Recent bankruptcy
c.
Self-employed
2)
Immediate occupancy
3)
Time to pay down payment in installments (1st
time homebuyers)
4)
Time to clean up credit history
5)
Try out a house and neighborhood before buying
If you feel a lease option could be a
potential solution for you or you would like more
information, contact Dave Schneider at O’Hara Properties
at
630-832-2891.
