General Features & Benefits

Without a doubt, the Lease Purchase contract is the quickest, easiest and least expensive way to buy, sell and invest in real estate.

It replaces the typical adversarial relationship that usually exists between buyers and sellers with a win-win method of transferring real estate ownership. As a result, it is highly prized by those who know about its powerful features and benefits.

Specifically, if you’re the buyer, you will have minimum cash out of pocket, credit problems are okay, faster equity growth, increased buying power, time to kick the tires and peace of mind.

Tenant/Buyer Features & Benefits

If you are actively seeking properties for sale on a Lease Purchase agreement, you are either (1) a very smart renter, (2) a very smart real estate investor, (3) not ready to make a commitment, (4) cannot yet purchase a home through conventional means or (5) any combination of the aforementioned.

The Lease Purchase contract provides 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 2 Purchase contract and you’ll quickly see that the Lease Purchase contract wins hands-down — every time. Moreover, the buying power of a Lease Purchase contract can quickly and easily land you a propertythat you could only dream of buying the conventional way, especially since conventional loans on land are almost NON EXISTENT.

Here are some features and benefits for the tenant/buyer:

  • Faster equity growth: Equity accumulates much faster (five times or more!) than with conventional financing through a bank or lender.
  • Lease money is working towards purchase: Every month a portion of your lease payment (typically $100-$500) is credited towards your down payment or off of the sales price.
  • Option money is credited towards purchase: When you sign a Lease Purchase contract, you will pay the seller an option deposit. This money is your vested interest in the property and will be fully (100%) credited to you when you buy the home.
  • Minimum cash out of pocket: When you purchase a property the conventional way, you must pay at least 25% down plus closing costs and prepaid fees. When you buy with a Lease Purchase, you only pay first month’s rent and a small option deposit. This will save you between 25% and 85% every time you buy.
  • Frequently no down payment at close: Since you have given the seller an option deposit and you have been receiving monthly rent credits, there will frequently be very little or nothing left to pay at closing.
  • Profits from appreciation: Since the sales price is locked in before closing (as specified in your agreement), any increase in property value will mean that your equity (what you owe minus what it’s worth) is increasing in the property.
  • Increased buying power: When you buy a Lease Purchase property, you can put down as little as first month’s rent and a $27 option deposit. Compare that to a typical bank or lender who requires 25-50% down plus closing costs and prepaids.
  • Credit problems okay: Qualification restrictions simply do not exist. You will be approved at the sole discretion of the landlord/seller.
  • No lengthy escrows or mortgage approvals: Your approval will be based solely at the discretion of the landlord/seller instead of a lender who can take up to a month (or longer) to render a decision.
  • Less liability: Since you do not own the property (yet), your liability exposure will be dramatically reduced.
  • Quick move in time: You can typically take possession of the property in a week or less, instead of conventional move in times of one to three months, after your offer was accepted.
  • Maximum leverage: You are spending very little (or zero) money to control a potentially very expensive, and very profitable, piece of real estate.
  • Privacy: Your name will not be on the deed or in the public records until you exercise your option to buy.

Investor Features & Benefits

As an investor, you will receive the exact same features and benefits as the tenant/buyer.

Furthermore, as an investor you’re probably aware of the principles of leverage (the use of borrowed funds to improve ones capacity and to increase the rate of return on an investment). With the Lease Purchase contract, you can buy (control) properties for hardly any money down without using a lender or going through a lengthy loan approval process.

Additionally, the Lease Purchase contract is so quick and easy to use, you can significantly increase your productivity and, as a result, your cash flow.