Spam prevention
Rainmaker
836,855
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Yes. 

I LOVE them, when it is my property being optioned. 

However, if I am representing the buyer, I get paid up front, NOT at the option period.

This is a great opportuntiy to work without compensation.

Been there, done that.

Jun 09, 2015 09:24 AM
Rainmaker
1,280,053
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Assistant

Hillary, we don't do them and we don't recommend them to clients...buyers or sellers. There is risk for both.

Jun 10, 2015 10:33 AM
Rainer
66,214
Evelyn M Epperson
Coldwell Banker Residential Brokerage - Johns Creek, GA
A Tradition Of [Excellence, Trust & Service]

Lease purchase may work out 3% of the time.  I just do not do them any longer.  I have enough headaches!

Jun 10, 2015 10:30 AM
Rainmaker
3,615,012
Richard Weeks
Dallas, TX
REALTOR®, Broker

In TX we are not allowed to write any lease to purchase terms in our standard contract.  Therefore the buyer and seller would need to hire an attorney.  Also our state property code puts many restriction on the seller in lease purchase transactions.  So I guess my answer is in TX don't do it.

Jun 09, 2015 08:56 PM
Rainmaker
2,359,447
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Hillary. I would never recommend it if someone has to sell or the market is the area is pretty hot, otherwise why not.

Jun 09, 2015 07:35 PM
Rainmaker
1,507,314
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

We do not see them often here in CA. This scenario is designed to part a renter/buyer with their money. I'd stay away.

Jun 09, 2015 05:21 PM
Rainmaker
829,422
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Hillary - Lease Options are very common here, at least they were very common between 2009 and 2013. It was the only way many buyers with a lot of savings and good income, but bad credit, could purchase.

I have never done one, so all I can say is that it has been done a lot here. There are businesses that that is all they do.

Jun 09, 2015 03:44 PM
Ambassador
2,979,590
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

yes, no, didn't close and was a nightmare for my seller.  I'll never do it again.

Jun 09, 2015 02:41 PM
Ambassador
3,985,869
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

My very first transaction in the business 35 years ago was one of these and it worked. I have never been afraid of them since and know what to watch out for. 

Jun 09, 2015 11:27 AM
Rainmaker
6,029,933
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

No. This is not the kind of business I would encourage. Immediate commissions provide a higher level of satisfaction.

Jun 09, 2015 09:27 AM
Rainmaker
3,985,637
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have done several with out ever having a bad one.  Qualifying the buyer right away is paramount and taking a deposit or Earnest money is a must.  If the buyer can not close on the property in the time frame spelled out, the buyer loses the E-Money.  This works good for sellers who do not want to sell now but would like a fairly certain closing date.

Jun 09, 2015 08:14 AM
Rainmaker
803,308
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Options to buy are usually a joke. People with bad credit and little money that can't qualify for a mortgage are usually the people that look for these lease w option to buy scenarios. Most never buy.  if the seller wants to sell, the tenants always have the option to buy if they can get the money. Any seller considering doing this should have the tenant meet with a lender to see what the chances are that the tenants can qualify for a mortgage before the end of the lease. If tenant is recovering from a foreclosure or short sale, they might be worth considering for a lease w option to buy. But the problem is, an option doesn't commit the tenant to buy. The tenant might find a better deal before end of lease. Someone called me the other day asking if they could put an option to buy on a lot I have listed. I asked him " what is an option to buy"? Turned out he just wanted to tie the property up to keep someone else from buying it.

Jun 09, 2015 08:06 AM
Rainmaker
699,027
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

Something like that in my opinion is better left to the company attorney.

Jun 09, 2015 07:19 AM
Ambassador
931,155
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Run.  Far & fast.  I don't like lease-purchase transactions because there are just so many opportunities for things to go wrong and for everyone to get burnt. 

Jun 09, 2015 07:19 AM
Rainmaker
1,062,239
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

I would never put a tenant in a position to negate a possible sale by offering them an option. A lease purchase is the better choice and you know where you stand in the transaction at the onset. A large non-refundable deposit assures that.

Jun 09, 2015 06:55 AM
Rainmaker
4,798,978
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I have not.  Typically not a good deal for the buyer.

Feb 09, 2019 07:59 AM
Rainer
19,078
Hillary Cochin
First Home Mortgage - Chevy Chase, MD
Personalized and Local Mortgage Finance

I appreciate everyone's input! I love hearing about everyone's experiences, especially about situations I don't think of right off the bat. Especially Jeff Pearl 's suggestion on this scenario for someone recovering from a short sale or foreclosure.

 

There is so much that can happen over the corse of someone's lease term that as a lender makes me a bit apprehensive about leading someone towards this route.

Jun 09, 2015 10:41 AM