What conditions make a Lease Option beneficial to the buyer? Does the seller keep the accrued “extra” monthly payment if the buyer opts out of the purchase? Currently our market hit its peak but we are now facing a possible recession and we’re seeing the market already start to correct itself so prices are falling. Would you say this is a realistic season for the seller to agree to a lease option so that they can lock-in a good price? How would we go about setting a good pre-negotiated price? I’m the buyer btw.
Let’s say for the doctor office, 5 year lease and at the of the 5 years according to market price to buy, and the lease payments go towards to the purchase price? What do you think?
If the buyer wants to put down a certain amount of money to secure the place and lease the property for 6 months, does the 6 months lease payments go towards the principal of the purchase price?
How do you set up a lease to own with a family trust involved? My husband and I would like to set up a lease to own for one of his parents rental properties that they have in a family trust.
If I still owe on a property but I want to start a lease option on it, how does it work in regular’s to after the contract is up and the buyer choose to buy. Are they just going through a different bank to bank to acquire the financing. Which at that point you can pay off what you owe on the property and profit what is left over. Is this correct?
Depends on the payment terms in the option to buy. Most payment terms require the buyer to deliver all cash at close of escrow, but some options can include a form of seller financing, all or some seller financing with cash.
Should I lease to own if the house I want is $485k but I only qualify for a mortgage loan that is $425k and really want this house it’s a dream home. I don’t have any savings
In a lease with the option to purchase how do you guarantee that you will get back the money you gave them in addition to the monthly payment back if you do not go forward with the sale? Also, how does one guarantee the additional money you gave them on top of rent goes towards down payment for the sale of the house
In a lease option, you don't get the "premium" or upfront back if you decide not to move forward. That's essentially what you're paying in most cases to have the option to purchase the property. The same goes for the monthly payment, that is just the rent you are paying to occupy the home. As for the additional money that you pay monthly on top of the rent for the down payment (depending on how your option is structured) that will be done in a binding contract and that will show that the additional you are paying will go towards the down payment if/when you purchase. I hope that helps. Thanks for watching.
Seller can ask for skin in the game via a percentage DOWN payment and then tack interest into the FMV (fair market value) price (THE seller is the BANK) If the leasee doesn't follow through the seller takes back the property and doesn't give the $ paid back (this is my understanding) Plus you can do specifics in the contract such as the leasee cant alter the house without permission until the FMV Price is paid in full. If they follow through and get a loas after 2 or 3 yrs ..they get a house ..even though they HAD bad credit
