Seller FAQ’s

What is a Lease Option?

“Lease Options” are widely used in commercial property. They are rapidly becoming a new approach for residential property owners to sell and for individuals to purchase a property in a flexible way, without having to immediately qualify for a conventional mortgage and put down a large deposit.

A Lease Option is a written LEGAL agreement, whereby a property owner can grant an Option to a buyer which is an exclusive and irrevocable right to lease and purchase the property within a certain period of time, known as the Option Period, at a price fixed from the outset.

A Lease Option combines the benefits of both a normal rental lease (known as an Assured Shorthold Tenancy Agreement) and an Option to Purchase (known as the Option Agreement). Therefore, in reality, the Lease Option is actually two concepts, using two separate written agreements that combine together as a Lease Option.

We buy homes using a Lease Option from a Landlord/Seller and during that time, we either rent the property out and exercise the Option to buy it ourselves at a later date, or sell the Option to someone else, who is typically a first time buyer so they get the chance to buy the property.

What type of agreement will we sign with you?

We will execute an “Option to Lease Option” your property with a clause that allows us to sublet the property. We will then lease option the property, get all documents executed including the lease and option agreements and bank draft authorization, and collect the first month’s lease payment. We will then assign all of the documents back over to you and give you the first month’s lease payment. Our fee is the tenant buyer’s option deposit, which will be part of their down payment when they exercise their option and buy the home. In other words, you will still need to credit them that money at the end of the lease option term, only if and when they buy the home.

What is your involvement in collecting the rent?

We have no involvement in collecting the rent, other than to setup the bank draft authorization and get it executed and collect the first month’s lease payment at the time the lease is executed.

What is your marketing plan for my property?

The marketing plan involves professional marketing via more than 20 websites, including our own. Because of the volume of articles and press releases we circulate and the content on this sight, we are blessed with a high volume of traffic. Additionally, we will email blast your property to our growing database of prospective tenant buyers.

Who is the Tenant/buyer?

The Tenant/buyer is/are the person/persons who will live in the property under the Tenancy Agreement and who has/have the right to purchase the property under the Option Agreement.

What are other reasons that you believe that I would be better enrolling my property in your lease option program than simply listing with a Realtor?

Not having ever been involved in finance or credit restoration, most agents have no way of knowing what it will take to put someone in position to get a mortgage. Our involvement in qualifying a tenant/buyer for our program goes far beyond having someone else give them a credit score. Our tenant/buyer’s come to us because they WANT to own a home and they are willing to work to get one. Your tenant/buyer will be qualified with the same standards that we use for our homes.

Why do you believe you can find a better tenant that I could do on my own?

With a single property, you will most likely attract a “career renter”, which isn’t what you want. “Career renters” don’t exercise the option, destroy the homes, want to harass you at every opportunity about repairs, and generally want to pay less than your cost to carry the home. Our tenant/buyer’s come to us because they are interested in our program. Very often our first contact is non-specific to a home. With a single or even several properties, it would be difficult for you to provide the same level of value to the tenants that we strive to do. This value allows us to attract a better caliber of tenant.

What do you mean when you say you provide “value” to your tenant buyer’s?

Well, for starters, we take their financial futures very seriously. Our contracts are truly set up to put them in a position to purchase the home. We also offer them opportunity to increase their income via our referral program. We are also one of the few companies to report lease option payments to the national credit bureaus!!! No one else does this. The purpose of doing this is to propel the credit restoration for the tenant and provide for an earlier takeout, and then provide you with a return as quickly as possible.