Benefits to Buying with Lease Option
01
Faster Equity Growth:
Equity accumulates much faster(five times or more!) than with conventional financing through a bank or lender.
02
Rent money is working towards purchase
Every month a portion of the rental payment (typically $100.00 to $500.00) is credited towards your down payment or off the sales price.
03
Option Money is credited towards purchase
When you sign a lease option contract , you will pay seller an option deposit. This money is your vested interest in the home and
04
Minimum cash out of pocket:
When you purchase a home the conventional way, you must pay at least 5% down plus closing costs and prepaid fees. When you buy with a lease option, you only pay first month's rent and small option deposit. This will save you between 24% and 85% every time you buy a home.
05
Frequently no down payment at close:
Since you have given the seller an option deposit an you have been receiving monthly rent credits, there will frequently be very little or nothing left to pay for a down payment closing.
06
Profits from appreciation:
Since the sales price is locked in before closing (as specified in your agreement), any increase in property value will mean that your equity( what you owe minus that it's worth) is increasing in the home.
07
Credit Problems okay:
Qualification restrictions simply do not exist. You will be approved at the sole discretion of the landlord/seller.
08
No lengthy escrows or mortgage approvals:
your approval will be based solely at the discretion of the landlord/seller instead of a lender who can take up to a month (or longer) to render a decision.
09
Control of the home:
You will be put in full legal control of the home for a specified period of time without actually having to own it.
10
No taxes, less liability:
Since you do not own the home (yet) you will not have to pay property taxes and your liability exposure will dramatically reduced.
11
I'm a title. Click here to edit me.
I'm a paragraph. Click here to add your own text and edit me. It’s easy. Just click “Edit Text” or double click me and you can start adding your own content and make changes to the font. Feel free to drag and drop me anywhere you like on your page. I’m a great place for you to tell a story and let your users know a little more about you.
12
Quick move in time:
you can typically take possession of the home in a week or less, instead of conventional move in times of one to three months, after your offer was accepted.
13
Maximum leverage:
You are spending very little money to control a potential very expensive, and very profitable, piece of real estate.
14
Minimal maintenance:
Large maintenance problems or any maintenance problems that exceed a certain amount of money can be delegated to the landlord/seller.
15
Privacy:
Your name will not be on the deed or in the public records until you exercise your option to buy.
16
Peace of mind:
You will have full control of the home and can maintain or improve it however you with.