The Many Benefits Of Lease Purchasing

Lease Purchasing affords wonderful benefits and opportunities to sellers, buyers, investors and those who would like to operate a home-based business. Lease Purchasing allows you to control property without ownership which has benefits for all.

What Is A Lease Purchase?

A Lease Purchase is a process that combines a basic rental lease with an agreement to purchase, or with an option to purchase the property. The Buyer (or Lease-Purchaser) pays to the seller a monthly payment that usually approximates a rental amount or a typical mortgage payment on the home. A percentage of that payment is typically applied towards the purchase price. At the end of the term, the buyer has the right to purchase the property for the price and terms to which both parties have previously agreed.

Put another way, a lease purchase is essentially a rental agreement combined with a purchase contract with pre-negotiated terms. The buyer leases the property for a specific period of time and then purchases the property before the end of the lease agreement. Sales price, length of rental, rent credits, escrow instructions, etc., are all contained in the agreement.

A lease purchase is a wonderful way to control property without the headaches of banks, mortgages, taxes or immediate loan qualifying. Lease Purchasing gives you the right to buy the property, but not the obligation to buy.

Following are just some of the benefits of Lease Purchasing.

Benefits For Buyers
Low down payment.
Qualification restrictions are not as great as in conventional financing.
Past credit problems are not usually a road block.
The option consideration can be fully credited to the purchase price.
Your rent money is working for you.
Purchase price is usually locked-in ahead of time.
Gives you sufficient time to check out all the features and faults of the house.
Time to check out the neighborhood.
Puts you in legal control of a property for a specified period of time.
Time to shop for and obtain the best financing.
Major maintenance and repairs are the responsibility of the owner; you take care of nothing but minor maintenance.
Profits, in case appreciation occurs and you decide to sell in the future.

Benefits For Sellers

Usually top sales price for the property.
Better quality tenants.
Higher rent than usual for the market area.
Non-refundable option consideration.
All minor maintenance is delegated to the tenant/buyer.
Seller remains on the deed.
Seller retains the tax shelter.
No fees to pay.

Benefits For Investors

Maximum leverage.
Minimum cash outlay.
Minimum risk.
No maintenance.
Wonderful cash flow.
Excellent profit potential.

Benefits For The Business Owner

Little start-up capital needed.
Little or no credit needed.
Wonderful cash flow can be generated immediately.
Excellent and realistic first year income can be achieved.
Business can be started simply, no major equipment to buy.
Business can be operated full time, part time or in your spare time.
Best of all, the business can be operated from your own home office.

Copyright DeFiore Enterprises 2000

Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com

In The News:

pen paper and inkwell


cat break through


How to Build Your Free House

What if you could "place an order" for the construction... Read More

Why I Love Country Living

As somone who has lived in both places, I can... Read More

Land Subdivision - $1.2 Billion Dollar Developer Tells You How To Do It

Land subdivision is a bit like helping Mom slice up... Read More

Real Estate Values or Just Bad Habits

There are several small businesses that retain hundred year old... Read More

Give Your Home A Timeless Feel

In the world of real estate, there is a huge... Read More

How to Build a Real Estate Investing Power Team

As you continue to read about real estate investing, you... Read More

Home Warranties: Are They Too Good To Be True?

What is a 'Home Warranty?'A home warranty is like an... Read More

According To Sellers, Silence Isnt Always Golden?

When trying to sell a home, silence isn't always golden... Read More

7 Different Ways Anyone Can Become a Real Estate Investor

Being a real estate investor is not really that hard,... Read More

Finding, Fixing, Financing, and Flipping - The Short Course

Most people get involved in Real Estate investing to make... Read More

Building A Home? Want To Ask A Builder The Right Questions - Not The Dumb Ones!

These are real builder questions that I got from readers... Read More

5 Steps To Choose the Best Cincinnati Realtor

Excluding some professional real estate agents buying a house is... Read More

Personal Debt Can Disappear When You Set up a New Business

I teach students how to set up a new business... Read More

Conditions Are Right For Buying The Higher Priced Home You?Ve Always Wanted

Higher interest rates and home prices in the past have... Read More

Essential Buyer?s Guide for Overseas Real Estate

It's been said many a time that overseas real estate... Read More

Grab Your Dream UK Home On The Cheap - Property Auctions

Did you know that every year thousands of UK properties... Read More

How Does Interest Rates Affect New Home Sales and Wheres The Best Place To Build?

These real questions on new home starts and interest rates... Read More

Before Selling Your Home

Here are some important steps you should take before you... Read More

Real Estate Investment - One Simple Formula

I saw the ads in our small-town newspaper for years... Read More

FSBO - Selling Your Home FSBO (for sale by owner) ? Is It Worth It?

FSBO, what is it? FSBO means For Sale by Owner,... Read More

Water, Water Everywhere on the Waterfront

Waterfront living is among the most desirable of locations in... Read More

Avoid The Traps Of Finance

Most consumers are told where to get their mortgage because... Read More

Kings Bay Georgia Real Estate - Be Picky When You Choose your Realtor!

I have been a mortgage lender for many years and... Read More

Searching for CLUEs: What Homebuyers & Sellers Need to Know About Homeowners Insurance

Homebuyers and sellers should be aware about issues involving homeowners... Read More

How Can the Average Person Build Wealth in Real Estate?

Books on real estate are a dime a dozen-and most... Read More

Real Estate Investing - Protect Your Privacy

An irate tenant or disgruntled home-buyer, with the help of... Read More

How Do I Bring Consulting Into My Lease Purchase Business

As you are making your cold calls on property, you... Read More

Think You Can?t Afford Your Own Home, Think Again!

Do you have bad credit, no credit, filed a bankruptcy,... Read More

Prepare Your Rental Property for Occupancy

Among your many responsibilities as a landlord, the law provides... Read More

Real Estate Appraisal - Do It Yourself

For single family homes, there are two basic methods used... Read More

When Showing Your Home

Here below are some of the reasons why buyers may... Read More

Where is the Sophisticated Property Investor Putting his Money?

The Traditional FavouritesOver the last five to ten years, UK... Read More

California Home Seller Disclosure Duties

Property Condition - Seller's What to Expect During the Inspection... Read More