LEASE – WITH OPTION TO PURCHASE
My decision to lease a house to my tenant – and give him an option to purchase is somewhat different than most lease/option plans – and I do it for the following reasons:
1. To increase the monthly rental income on my larger more expensive houses (25-30%).
2. To secure a good paying tenant for 3 years.
3. Rent to a tenant who thinks more like an owner and will likely take much better care of my larger, more expensive houses.
4. Provides excellent selling profit – plus interest income.
I’m looking for a renter with adequate, verifiable income who for various reasons cannot qualify to finance a home! Likely credit problems – or lack of a down payment – often both.
My lease/option plan solves the two biggest problems facing most lease/option candidates – namely coming up with a down payment, and secondly, qualifying for a new mortgage to exercise the option.
My 36 month plan offers the lessee rent credits equal to the full amount of the down payment required. After the full lease period (36 months), I offer my tenant 2 different choices to finance the option sale with me. I’ll be the banker.
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