Hello Everyone

On today's show I talk about what is a lease purchase,? most sellers will ask that question if you present that to them.

And we give them the pro's and con's of why this either is good or bad for the seller , we give them a package so they can make up their minds.

Some pro's for seller

• Deed is still in their name
• Get asking price
• Tax breaks
• No maintenance issues
• More buyers at the ready
• No vacancies, payment is made regardless of whether house is occupied or not

Some pitfalls of lease purchase

• T/B changes won't buy, will need to re-negotiate terms with seller
• House is damaged, In that case we would need to make repairs, (very rare that happens)
• Value of house increases- but contract is signed, so seller can't realize gain.

Example Of A Lease Purchase Deal

123 Main St Anywhere USA, 00000

Property for sale @ $200,000- Seller owes $100,000, wants full asking price.

You agree on price, here are the terms.

Purchase Price $200,000

Monthly lease payment to seller $1500.00 per month= includes taxes and insurance

Term 36 Months

WE SELL TO TENANT/BUYER on a rent to own contract, T/B is in charge of repairs, taxes, etc.

Sell Price $225,000

We ask for 10% down payment=$22,500 to us

Monthly Payment from T/B $1800=$300.00 cash flow to us.

On sell price we pocket $25,000 ( We sell for $225,000 vs Seller asking $200,000)

1 Year term, reason if T/B can't qualify, we can put someone else in.

So here's the breakdown:

Seller asks We Sell

$200,000 $225,000

Monthly Pymnt to seller Monthly Pymnt from T/B to us

$1500,00 $1800.00

$300.00 cash flow per month= $3,600.00

Taxes & Insurance paid by Tenant/Buyer

Final Totals we can make, before taxes, fee's etc.

$25,000 on sale price

$22,500 on down payment

$3,600 on cash flow

= $51,100

Should you buy real estate, or no in 2022?

https://www.entrepreneur.com/article/402059 By Melissa Brock

Building Lists

• Listsource.com
• Propstream.com
• Propertyshark.com
• Redfin.com
• Zillow.com

Book I Recommend

• Lease Options -Wendy Patton

Thanks For Listening

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Thank you and Stay safe.

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