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Lease/Purchase Option Growing Trend??

By
Real Estate Broker/Owner with Total Care Realty NCRE# 257455

Ok AR let's hear about your area's.  I have several clients now looking for lease with option to purchase.  For one reason or another these folks have a at risk credit score so are now looking to get into a home repair their credit and then buy that same home.  I don't know about your area but I now have three different builders/developers that are doing lease/purchase contracts.  I will not be surprised at this rate if the NC Real Estate Commission comes out with a form just for this transaction.  I mean I have plenty of buyers buying property up but, this has become a investment in future income.  I usually get a small amount up front like a finders fee for the lease but, then when they follow through and buy I get my commission.  This keeps up in a year I will take a vacation!!  

What are you seeing out there or have you passed on these clients?

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As the Broker-in-Charge, owner and founder of Total Care Realty, LLC, Larry is focused on quality of service. He believes in being on the cutting edge of any product or process that will help market the client’s property or help them find the perfect home. Larry has been consistently recognized as going above and beyond for his clients; he was described as a ‘personal concierge Realtor®’ early on in his Real Estate career. Drawing on his past experience of owning restaurants and working with new technology, innovation is his focus. Larry often says, “we are not afraid to take advantage of new technology as soon as it is available instead of waiting for a corporate office to tell us what we are allowed to do”. This is a benefit of being an independent Real Estate company. As a graduate of The Citadel, instilled in him is the importance of discipline, loyalty, focus, and determination. Marrying those ethics and ideals with the hard driving focus it took to own and manage restaurants for almost twenty years, has given Larry a passion to make sureclient satisfaction is the number one priority. “As your Personal Concierge Realtor® it is our job to help take care of every need of our clients.” Larry Story — Total Care Realty, LLC — 336-327-1841 also at  http://totalcarerealty.net

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Amanda S
Westfield, IN

It's not necessarily a great program because they may need to put 1-2% down, and if they don't purchase the home they lose the money.  I prefer the Nehemiah programs, no downpayment, and they close!

Jun 06, 2008 05:45 AM
Douglas Cartwright
Bankers Life/Colonial Penn - Somerset, NJ

Larry,

Great post. If others have had any experience please share...

Thanks

Doug

 

 

Jun 06, 2008 05:46 AM
Larry Story ALC
Total Care Realty - Greensboro, NC
Beneath it all is the Land, Covering all of NC

Thanks Doug just trying to let everyone know.

Jun 06, 2008 05:56 AM
Larry Story ALC
Total Care Realty - Greensboro, NC
Beneath it all is the Land, Covering all of NC

Amanda,

True but, if you can't qualify for FHA then you are out of luck.  These people are usually a little cash rich but, credit poor.  Either because of such things like divorce or bad financial moves they cannot quailfy for financing.  This gets them in a home, part of their lease payment goes toward the purchase price (just like your interest/principal split on a mortgage payment) a they lock in the price.  So by the time they do close they have a little equity in the home already between the option money and the % off the lease.

Jun 06, 2008 05:59 AM