BUY WITH RENT – TO – OWN PROGRAM:
Our Rent-to-own or lease-to-own
program is suitable to Renters and those with credit issues. We
are ready to finance sale of our property and willing to take on the additional risk.
No waiting period, closing cost or additional fees at the inception of the lease.
You can receive all the benefits of homeownership without the hassle of bank financing.
We provide win-win real estate solutions for all of our customers. We
are your problem solver.
This is a two-part agreement (a) standard
lease that spells out the monthly rent and other standard lease terms (b) the second part is a Real Estate Option, which is
a one-way agreement that binds the Seller to sell you at an agreed upon price. The
Seller has to sell when you want to buy during the option term, but you don’t have to buy if you do not wish to exercise
your option. That is why it is a one-way agreement.
Without immediate purchase, you benefit
from the appreciation even though you do not own the home. You get to purchase
an appreciating home in the future at today’s price. You will enjoy full
legal control of the home for a specified period of time without having to actually own it.
Additionally, you are spending very little money to control an expensive and potentially profitable investment.
You may get to deduct interest payments
and property taxes from your income taxes. This lowers your income taxes and
allows you to increase your deductions.
You may talk to a mortgage company of your
choice. It must indicate a reasonable certainty as to your ability to obtain
financing. It may recommend a course of action such as paying off certain bills
or other financial obligations or a savings plan that would ensure your ability to fund your portion of the purchase price.
With 5% down payment as an Option-to-Buy
Fee (option consideration), you may qualify for our program. It will give
you time not only to build up a minimum of 10% down payment, improve your credit, but also buy down the road. We will contribute 10% of rent toward your future down payment.
In addition, we will contribute $100 toward monthly condo fee and $50 toward reserve for capital improvements
– all being non refundable under any circumstances. Reserve fund will be
maintained in an interest bearing account with a financial institution.
You will receive rent credit
if you have decided that is the way to go instead of paying market rent and establishing your own savings account. It will apply for those months when you pay rent on time.
Miss the deadline by a day and you risk losing the rent credit for that month, our special bonus at the time of
closing, and pay late payment fee as well. Checks returned due to insufficient
funds will incur a service fee of $30 in addition to late payment fee, if applicable.
You promise to buy a particular piece of
property at a pre-determined price of $____________ within 2 years’ time frame.
Option consideration fee is not refundable but is considered part of the down payment when you close on the property. Lease terms could be extended if the buyer has had a good payment history and
pays extension fee of $1,500. The lessee must understand that price negotiations
are not common with lease options. However, you are under no obligation to buy
the property and exercise your option, if you determine that doing so is not in your best interest. Your option consideration fee will be kept as compensation by the owner for guaranteeing the price to you
for a fixed period of time. Your intent should therefore always be to buy the
home once you enter into a rent to own agreement.
The difference between a lease option and
a rental agreement is very evident with maintenance issues. The lease option
allows the buyer to assume more responsibilities when it comes to repairs and maintenance of the unit other than the
common areas. Everyone benefits when the buyer invests in upgrading the home,
which increases its value. Remember such improvements should be agreed upon and
must be in accordance with the building codes.
Before you actually buy the home,
you will have sufficient time to repair your credit, find the best financing, investigate the home and research the neighborhood.
When you are ready to exercise your
option we will credit your initial option fee as well as the said monthly rent credits towards your pre-determined purchase
price of $_____________. Based
on 30 years amortization of 90% value, your monthly payment for principal, and interest will amount to approximately $_________
per $1,000. You will still be responsible to insure your unit, pay
monthly condo fee and reserve for capital improvements. You will also pay a cushion
of 3 months payments, which will rest in an escrow account.
Only those who made on time monthly
payments will get special bonus up to $1,400 to pay for our documentation and attorney fee. In case of conventional loan, we will contribute this amount toward buyer closing cost.
Under this option, we highly recommend
to get satisfactory home inspection within 10 days at your expense. The unit
is offered on “as-is” basis. In addition to paying property taxes,
obtain unit insurance, you will be fully responsible to repair and maintain the unit.
In case lessee is evicted due to
non payment of rent or any illegal activities, lessee will not only lose right to buy but also entirely lose "option consideration
fee" and any rent credits earned.
Lessee:_____________________
Notary
Public:_______________
Lessor:_____________________
STOP THROWING AWAY YOUR RENT MONEY
