How Can a Lease Purchase Help Me?
Oftentimes, when a homeowner is trying to sell their house, they think there are two options.
1) Sell for cash.
2) Rent the property out.
The truth is, a lease-purchase can be a fantastic second option, with just offering a straight rental as a distant third option.
Just some of the benefits for the seller utilizing a lease-purchase are:
- Absolute top dollar for the property
- No haggling, no negotiating with the buyer
- No commissions, which will save you 6% in most cases
- Cash flow each month
- Purchaser obtains a home warranty thru Old Republic Home Protection
- You are not responsible for any repairs other than what is covered by your insurance, such as storm damage, etc.
- Although we draft 12 month contracts, most of the buyers that come thru our program get permanent financing within 8-10 months, as they want to close as fast as they can.
With lending guidelines tightening up, and a large number of houses on the market, it is going to take longer and longer to sell your house.
Our program is a great alternative to get cash flow coming in while the occupants are preparing for finance!
1) Problems sellers face:
- Too many houses to compete with
- Not enough buyers
- Have to keep dropping sales price
- Not much equity
2) Problems buyers face
- Lending Guidelines tightening up
- Old or incorrect items on credit report
- Not enough trade lines
3) How we solve it
- We have a fairly small number of houses to choose from, often less than 50
- We have a large number of people that can’t quite qualify for financing.
- The price is set. No need to keep dropping your price!
- We have credit improvement in place through Envision Financial.
- We are affiliated with Public Savings Bank to help establish trade lines.
- We have the financing in place through Viewpoint Mortgage.
- You pay us nothing! No commission!
** Most people have credit scores between 560 and 620, but the lenders require a 640 or higher, which means you aren’t marketing to most people! One incorrect item can keep someone from buying your home!
Most issues that people have items on their report that they didn’t know about or thought had been corrected. This is where Envision Financial helps.
Many people today don’t use credit due to the high rates and business practices of credit card companies. So they may only have a car payment to show as a tradeline, but the lenders now require THREE trade lines, so we assist them in getting those trade lines through Public Savings Bank.
Many of the people that come to us for our program were turned down at the last minute for financing on a house, and need to address a couple of items, but they want to keep the kids in the school district and are serious about buying as soon as possible. This is NOT a rental situation as they are simply making the payments directly to you while preparing for permanent financing on your home.
Here’s how it works:
The tenant/buyers are paying you rather than the bank, so the payments go directly to you. It can even be set up electronically from their bank to yours.
Envision Financial Solutions assists with items that the lenders wanted addressed and we help them establish trade lines through Public Savings Bank if needed.
While working on the financing, they are responsible for the repairs, and can get a warranty through Old Republic Home Warranty.
As soon as the items are resolved, they finance with Viewpoint Mortgage and you pay no commission. You never pay us! You keep your equity and your cash flow each month!
Multiple companies working together to expedite the purchasing process.
Benefits to the seller:
- You get full price
- No negotiations
- Cash flow each month
- Buyers take care of the property
- Don’t pay commissions
- Equity at cash out
- Short term full price
To learn more contact us today!