Seller FAQ

What is the agreement we sign with

  • You will sign an “Option to Lease Purchase” for your home.  We will then lease option your home to a tenant buyer, execute all the necessary documents which include the lease and option agreements, bank draft authorization and collect the first months lease payment from the tenant buyer.  Then we assign all the documents back to you along with the first months lease payment.  Our fee is paid by the tenant buyer as an option deposit which is part of their down-payment and will only need to be credited by you to the tenant buyer when they exercise the option and purchase the home.

How much will this cost me?

  • There is absolutely no cost to you.  We get paid by the tenant buyer.

How will this obligate me?

  • You are not obligated to work exclusively with us.  You can still sell or rent your home yourself or through an agent.  If you sell or rent your home before we do, there is no money owed to us.

How can I get full retail value for my home?

  • Our tenant buyers are willing to pay full retail price in order to buy a home today on a lease purchase basis because their only other alternative would be to simply rent.  They would rather own a home at full retail price than just rent one out.

Where do you find tenant buyers?

  • We use a variety of proven resources including selective high-traffic internet sites, signage and referrals from various sources.  We have a large pool of tenant buyers  that is continually growing.  There is great demand for homes that can be owned using lease purchase and we have far more qualified tenant buyers than we do homes.

I am concerned about having “renters” in my home?

  • This is a valid concern.  However, you are thinking of the typical career renter.  There is a dramatic difference between a career renter and someone who is intending to buy the home.  The career renter doesn’t have “skin in the game”.  Our tenant buyers intend on owning the home and have a vested interest.  They have paid us a fee to get them into credit repair and work with a mortgage broker so as to be able to buy the home.  They are receiving a monthly credit toward buying the home for each month they make their payment on time.  They only receive the benefit of the credit if they buy the home.  The people that come to us are responsible people with good jobs and families but have suffered a set back that has temporarily prevented them from getting a loan to buy the home.  Most are established in the neighborhoods and schools and are tired of throwing their money away by renting.  Now that they have an opportunity to own a home they are very committed to seeing things through.

How soon can the tenant buyer get a mortgage?

  • This will depend upon the individuals situation but usually they have some blemishes on their credit that need to be resolved or removed which is why we require the tenant buyer to work with our credit repair team to assure they will be in a position to obtain mortgage financing by the end of the lease term.  In most cases this will be within 6-12 months, sometimes up to 18 months, and depending on the situation and the current mortgage, even longer.

What happens with my homeowners insurance?

  • In most cases you will continue to pay your homeowners insurance but this cost will be covered in the tenant buyer’s monthly lease payment.  You will most likely have great tax advantages due to the fact that your home will be considered an investment property (consult with your tax adviser).  Furthermore, you can likely reduce your rates by removing the personal items within your home from the policy.  It is up to the tenant buyer to obtain insurance to cover their property within the home.

What about maintenance of the property?

  • As part of the lease agreement, the tenant buyer is responsible for all the maintenance of the home.  Your homeowners insurance covers any major issues such as storm damage, sewer backups, fire, etc.  We also recommend the tenant buyer purchase a home warranty policy to assure all repairs are covered.

Why shouldn’t I just list my home with a Realtor?

  • Keep in mind you will typically pay 6% in Realtor commissions as well as closing costs and other fees when using a Realtor.  This will literally reduce the profit from the sale of your home by thousands of dollars.  On the other hand, using our services costs you absolutely nothing.  Realtors don’t spend time working with lease purchase tenants but instead focus their time listing homes on the MLS targeting traditional bank financed buyers.  This approach is very limiting considering that in today’s market, the traditional bank financed buyers comprise a small percentage of the overall serious buyers who want to purchase a home.  This is why so many homes are just sitting on the MLS without selling.  We typically place tenant buyers into our homes within 2 to 4 weeks.  Depending upon your situation, using a Realtor may be a viable choice for you.  Once we evaluate your circumstances we can recommend a Realtor to you if we believe our services are not in your best interest.