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Rainer
60,591
Renee Paray
Coldwell Banker Preferred - Blue Bell, PA
REALTOR

I did one of these with a 4 year option to buy. My clients were intent on looking for a lease to own as their current house had a significant mold issue. They also wanted time to repair their credit. I told the clients the pros and cons of lease to own and presented them with all of the pertinent facts. They decided to move forward with the lease. I only wish I followed Annette Lawrence , Palm Harbor, FL 727-420-4041 advise in line #2. I was only paid on the 1st months rent. This was my 2nd transaction in real estate and my mentor had never did a lease to own. 

Jul 20, 2015 04:21 AM
Rainmaker
1,459,427
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Heidi Kelley The point to remember here is this is only an option to purchase. Options do not have to be honored for any reason and the potential buyer can walk away at the end of the lease period. Here we can do a lease purchase where a contract is written today with basically a delayed settlement for a specific date in the future. Buyer pays rent until the closing date. No backing out otherwise the contract is in default.

Jul 20, 2015 12:02 AM
Rainer
66,912
Evelyn M Epperson
Coldwell Banker Residential Brokerage - Johns Creek, GA
A Tradition Of [Excellence, Trust & Service]

1 in 100 lease purchases close that is a main issue.  

Jul 20, 2015 02:31 AM
Rainmaker
849,280
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

If tenants and seller agree on terms, occasionally they work. i advise buyers to talk to lender and have lender latter stating what they need to do to be in position to buy at end of or during lease term. Most sellers won't tie their house up with a tenant / to be buyer that has no way of getting a mortgage in 12 months.

Jul 20, 2015 01:50 AM
Ambassador
1,580,205
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

I offer my clients the pros and cons of this then it's totally their decision.  I work for them.

Jul 19, 2015 11:17 PM
Rainmaker
888,097
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

#1, Use an attorney.

#2. You get paid at time of transaction, not at time of purchase

#3. Your seller will soon realize they should NEVER sell this house. This will prove to be the most economically beneficial move the owner ever made. (note: if you skp #2, you will never be paid)

A broker here in Tama Bay entire business is shuffling 13 properties all on the Lease/option, rent-to-own plan.

The first line in the contract reads, "My intent is to make an obscene amount of money. (Seriously, IT REALLY DOES STATE THAT) and every years folks sign up.

Jul 19, 2015 10:15 PM
Rainmaker
3,329,752
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It is not needed in our market, most new listing get offers with the first couple of weeks. Lease purchases work best when there is a lack of buyers and the seller needs to move quickly. In those cases i make sure the buyer is qualified to buy a home but in most cases needs a year to save the down payment or closing costs, 

Jul 19, 2015 10:07 PM
Rainmaker
4,037,424
Richard Weeks
Dallas, TX
REALTOR®, Broker

My advise go see a real estate attorney.  The Texas Property Code with regards to option ot purchase if very complicated.  Our state commisssion does not allow us to write up this type contract.

Jul 19, 2015 10:00 PM
Rainmaker
292,535
Jack Lewitz
Exit Strategy Realty - Evanston, IL

Pro- you have it rented 12 months and are collecting rental income . 

Con- you are still responsible for real estate taxes and repairs.

what will be the future sale price?

do you use the security deposit as part of down payment ?

i am guessing buyer does not qualify for loan today so what is going to change in a year?

Jul 19, 2015 09:50 PM
Rainmaker
3,333,951
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

 We look at these "offers" with a jaundiced eye....if the Seller could sell the house for a price that the market accepts...why wouldn't thay ?  In our experience such a transaction starts the unsuspecting buyer upside down with more payments than equity.

Jul 19, 2015 09:47 PM