Lease Options Explained

Definition

A Lease Option is similar to any type of "option". It gives the Optionee the right or privilege to do something. In the case of a lease option, it allows the optionee the right to purchase a home at some pre-defined terms.

In plain English, you buy the right to have the option to buy the property in between some terms that you and our company will agree upon.

Facts

The Lease Option Agreement is the quickest, easiest and least expensive way to buy, sell or invest in real estate. It replaces the typical adversarial relationship that usually exists between buyers and sellers with a win-win method of buying your own home. As a result, it is highly sought after by those who know about its powerful features and benefits, If you are in the market to buy a home, you are probably aware of the advantages home ownership provides (tax shelter, appreciation, security, etc). If you are actively seeking homes for sale on a Lease Option Agreement, you either (1) cannot purchase a home through conventional means, (2) are not ready to make a commitment, (3) are a real estate investor, or (4) a combination of the above. We provide you with many features and benefits, but perhaps the most powerful one is the rate at which you accumulate equity. Compare any lender's loan amortization schedule to that of a Lease Option Agreement and you'll quickly see that the Lease Option Agreement wins hands-down -- every time. Moreover, the buying power of a Lease Option Agreement can quickly and easily land you a home that you would never qualify for the conventional way.
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Benefits of Options

Our buyers range from individuals who have had some 'bad' luck in the past, i.e. bankruptcy, divorce, etc.; haven't saved enough of a down payment; new to this country with no credit history or have enough money to put down, but don't want to use all their cash towards a downpayment. When these type of situations happen to a person, it can be difficult to get a mortgage due to poor credit history or no credit history.

This type of situation can be overcome with time. A lease option gives you time to repair or correct poor credit and time to create new credit. When you lease option a home from us, your prompt on time payments in your lease option home enhance your credit worthiness when getting a mortgage. Additionally, we provide credit repair and credit building services upon request.


How We Work

Our Lease Options are all 12-24 months in length
(some exceptions can be made). Here is an example of how it works:


Examples


555 Water Street, Miami, Florida - Sales price $200,000., Option Fee $6,000., and a monthly Lease Rate of $1,500.

The $6,000.00 Option Fee gives you the right to purchase 555 Water Street, Miami, Florida for $200,000. within 18 months.

The $6,000.Option Fee is applied back to the purchase price of the property at the time you get your mortgage.

In this example, you would have 18 months to acquire a mortgage on this home. We would also reward on-time payments by giving you an additional $100. for each month your lease payment is received by the 1st of the month. This could give you an additional $1,800. to apply towards the purchase price of this home.

If you always pay on time, this example would give you an additional $6,800.towards your home. However, if you decide not to purchase the home you would forfeit all of your option considerations. Just like other options.

Therefore, you need to be sure that you want AND can buy the home prior to signing the option agreements.


Things To Consider

Talking to a loan officer prior to signing any option agreements is the best way to start your search.

Also, note that many mortgage companies may not be familiar with lease options. We will be glad to make a conference call with you and your loan officer to make sure that everyone understands how lease options work.