Have you ever had bad tenants? Late payments? Damage to your property? Land lording has never been fun, especially when you have a nice home with bad tenants. You, later, realized that renting your home wouldn’t work due to management headaches.
Have you tried to sell your home and it seemed as though nobody was interested in it? The Realtor couldn’t sell it after they convinced you to list your home. You must leave town and the home sits vacant…
Your home sits vacant and you have no hope of it selling. You will probably make three or four mortgage payments. Your home sits there with no bites and you think about reducing the price to sell it quickly. But you know you need to do something NOW!
I would like to introduce to you a smarter approach to selling your home…better than renting!
Here’s the alternative: Lease Option.
A Lease Option is simply a lease agreement combined with a purchase contract, which gives a new tenant/buyer the right to purchase your home under specific terms.
I offer a unique plan that will fit your needs. I will Lease option your home from you at an agreed price and terms. I will then find a suitable tenant/buyer that will get qualified, to live in your home. When the tenant/buyer is ready to buy, we will help them get financing to buy your home. My price is higher than what I bought it from you.
Reasons sellers agree:
- Renting Their Home
- No or Little Equity
- Don’t Need all Cash Right Now
- Job Transfer and Need to Move Quickly!
- Behind on Monthly Payments
- Trying to Buy Another Home
- Can’t Sell Their Home
- Health Issues
There are so many buyers who want to become homeowners but either cannot qualify for a mortgage yet or don’t know the process of buying a home, or they have bruised credit, need longer self-employment history, or lack of down payment. Tenant/buyers still go through the usual process as if they were renting out a property with the assistance of a mortgage broker.
Renting out your home can become very costly! Lease option is the least expensive way of renting your home, especially when the market is slow. Your home does not need to be in tip-top shape but it must be livable. This allows the tenant to make any improvements to the home that they wish. It gives them a sense of home ownership.
If you have an empty home with a mortgage on it, you’re losing money! You are making monthly payments on two different properties, one that you do not live in. I see a lot times where a homeowner is relocating and decide to let their current property go into foreclosure because they were unable to sell their home. A foreclosure, then, is on your credit for the next 7 years.
Related: Understanding the Foreclosure Process and How It Affects Your Credit
Seller benefits:
- Receive up to full price for home
- Receive a nonrefundable down payment (vs. security deposit)
- No management headaches
- No or little maintenance cost or repairs
- Committed Buyer
- Receive positive cash flow
- Retain title to home
- I do all the work for you
- I cost you nothing (vs. 6% commission fee)
Here’s an example:
Situation: Relocating
Property: 4 bed/ 2 bath (need repairs but livable)
Asking Price: $220,000
Offer #1
Sales Price: $220,000
Down Payment: $2,000
Monthly: $1200
Term: 2 years
Offer #2
Sales Price: $209,000
Down Payment: $5,000
Monthly: $1200
Term: 3 years
Offer #3
Sales Price: $215,000
Down Payment: $2,000
Monthly: $1400
Term: 2 years
Now if a homeowner doesn’t want to wait that long and needs to sell ASAP, I can structure a deal like this:
Sales Price: $215,000
Down Payment: $1,000
Monthly: $1,100
Term: 1 year
The agreement can be for a shorter or a longer term, depending on seller motivation. Typical terms are 1-3 years. There’s always room for negotiations. Banks nor Realtors can help the buyer so they are forced to rent. So why not help a buyer get into a home today? They just need some time to fix whatever is preventing them from getting a mortgage today. Lease Options are a faster way of selling your home and a Win-Win situation for everyone involved.
If you have any questions, feel free to call us at 954.256.5091 or fill out the form below and we will contact you as soon as possible.
Minor Realty Group 