"Florida Rent to Own Contract"
Rent To Own A Florida Home Advantages Of Rent To Own – Lease with Option with to Purchase The Lease and Option contract is the quickest, easiest and least expensive way to buy, sell or invest in Florida real estate. The lease option rent to own method replaces the typical adversarial relationship that usually exists between Florida buyers and sellers with a win-win method of transferring real estate ownership. As a result, the lease option method is sought after by those who know about its powerful features and benefits. Tenant Home Buyer Benefits If you are in the market to buy a Florida home, you are probably aware of the advantages home ownership provides including amortization, appreciation, tax shelter, security, etc. If you are actively seeking Florida homes for sale on a lease option agreement, you either (1) are having trouble qualifying for a conventional mortgage, (2) are a real estate investor, (3) are not ready to make a commitment, (4) are very smart or a combination of the above. The lease and option to purchase contract provides a Florida homebuyers with many features and benefits, but perhaps the most powerful benefit is the rate at which the tenant buyer accumulate equity. If you were to compare a mortgage lender's loan amortization schedule to that of a Lease and option to purchase contract and you'll quickly see that the Lease option agreement wins hands down -- every time. In addition, the buying power of a Lease Option contract can quickly and easily land you a the Florida home that you would never qualify for the conventional way. Here are some features and benefits for the tenant lease option buyer: - Credit Problems are Okay: Qualification restrictions simply do not exist. You will be approved at the sole discretion of the Florida home seller. - Minimum Cash Out of Pocket: When you purchase a Florida home conventionally you will pay at least 5% down plus closing costs and prepaids. When you buy with a Florida home on a lease option agreement typically you only pay first month's rent and a small option deposit usually 3.5-7% of the purchase price. This will save you between 25% and 85% every time you buy a Florida home. - Quicker Move In Time: You can typically take possession of a Florida home in less than one week instead of conventional move in times of one to three months after your offer was accepted. - Maximum Leverage: Your spending very little money to control a very expensive, and very profitable, piece of real estate. - Build Faster Equity Growth: With a lease option contract the equity accumulates much faster up to 5 times or more! than with conventional financing through a Florida bank or mortgage lender. 1/3 Rent To Own A Florida Home - Your Lease Money is Working Toward the Purchase of the Florida Home: Every month a portion of your rent payment 25-100% of your rent is credited towards your down payment or off of the sales price. - Option Consideration is Credited Towards the Purchase of the Home: When you sign a Lease and an option contract, you will pay the seller an option deposit. This option deposit is credited towards the purchase price. - No Down Payment at Closing: Since you have given the home seller an option deposit and you have been receiving monthly rent credits, depending on the bank there will frequently be very little or nothing left to pay for a down payment at closing. - Profits from Appreciation: Since the option to purchase is locked in before closing (as specified in your option to purchase contract), any increase in Florida home value will mean that your equity (what you owe minus what it's worth is increasing in the home . - Increased Buying Power: When you purchase on a lease option contract, you can put down as little as first month's rent and a small option deposit. Compare that to a typical bank or lender who requires 5-20% down plus closing costs and prepaids. - No Lengthy Escrows or Mortgage Approvals: Your lease option approval will be based solely at the discretion of the home seller instead of a lender who can take up to a month or longer to render a decision. - Control of the Florida Home: You will be put in full legal control of the Florida home for a specified period of time without actually having to own it. - No Taxes and Less Liability: Since you do not own the Florida home yet, you will not have to pay property taxes and your liability exposure will be dramatically reduced. - Time: Before you actually buy the Florida home, you will have 6-24 months depending on your lease and option agreement to repair your credit, find the best interest rates, investigate the Florida home and research the neighborhood and/or schools. - Possible Assignment of your Contract for a Profit: If you are allowed to assign your option or the home itself you can profit between your option price and the sale price. - Minimal Maintenance: Large maintenance problems or any maintenance problems that exceed a certain amount of money are delegated to the seller. - Privacy: Your name will not be on the deed until you exercise your option to purchase a Florida home. - Peace of Mind: You will have full control of the Florida home and can maintain it or improve it however you wish. Buy a Home By Lease Option Home Seller/Landlord Benefits If you don't need much cash up front 3.5 - 7% to the sale price, the best way to get your full asking price and a higher than average monthly rent for your Florida home is to sell it on a Lease and an Option contract. Since you are offering a the homebuyer attractive financing they tend to be willing to pay a higher sales price and higher than average rent. Tenant home buyers can easily understand the concept of trading price for time and value. 2/3 Rent To Own A Florida Home Here are some benefits for the landlord/seller: - No Long Vacancies: When we advertise your Florida home as a Lease with option to purchase our phones will literally ring off the hook. Typical turnover time is days or weeks instead of months or years. - Larger Market of Florida home Buyers: You are marketing your home not only to traditional buyers, but also to renters and investors. These three groups make up over 85% of people seeking to buy Florida real estate. - Top Sales Price, Even if Demand is Low for Your Florida Home: You attract 5x more Florida buyers who are willing to pay a premium because of the exclusive financing terms your offering. - Higher than Usual Rent: Since you are flexible on your home lease option terms you are offering a tremendous value, you can demand a higher than usual monthly rent. - Positive Cash Flow: Since you can demand a higher than average rent, your positive cash flow will increase. - Non-Refundable Option Deposit Up Front/Minimum Risk: When a tenant home buyer executes (signs) a Lease option contract, you receive an non-refundable option deposit that is yours to keep should the tenant buyer default or decide not to purchase your Florida home. - Attraction of the Highest Quality Tenants: Because you are renting to tenants homebuyers who have a vested interest in your Florida home, they think like homeowners and tend to take good care of it. - No Maintenance and No Landlording: Tenant buyers who have a vested interest and believe they are a homeowner tend to feel a "pride of ownership" that encourages them to pay on time, perform home maintenance and make improvements to your Florida home. - Tax Shelter is Maintained: Because your still on the deed until the option is exercised, you maintain all of the tax benefits of ownership. - Peace of Mind: A lease option is safer than conventional rentals because of the quality of the tenants and their vested interest in your Florida home. It also means that someone is living on-site who will watch and guard your home against fire, theft, vandalism, etc. Sell A Home By Lease Option 3/3