Lease Purchase your Investment Property

By
Real Estate Agent with J. Roberts & Company
https://activerain.com/droplet/kpv

In today's real estate market investors are being faced with some difficult decisions on what to do with their single family investment homes.  Dump the house, probably for a loss, Rent the house, probably for less than the monthly mortgage payments, or lease purchase.

As an investment property owner I am currently lease purchasing a few homes. A few of my favorite features are 1.  the non-refundable deposit, 2.  a pre-negotiated sale price at the end of the two years, and 3.  not having the same responsibilities as a renter (landlord tenant act).

Also, due to the lack of available loans for the average person, an average down payment (non-refundable) can be anywhere from $5,000 to $20,000.

Therefore, if your monthly lease payment doesn't cover your mortgage payment then the down payment should cover the difference and probably provide a positive monthly cash flow.

I am a fan of the lease purchase for my own investment properties.

Mat Curtner/Realtor

J.Roberts & Company

mcurtner@msn.com

480-570-4913

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Rainmaker
826,140
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Matthew,

In 36 years in the title business I have only been involved in a handful of lease purchases, but I must say I think they are greatly underused. Nice post! Thanks,   Fran

Oct 03, 2007 09:56 AM #1
Rainmaker
227,029
Joan Snodgrass
Midamerica Referral Network - Kimberling City, MO

Matthew:

Yes - bought my first house that way. 

Oct 03, 2007 10:05 AM #2
Rainmaker
1,053,958
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F
What is your success rate at getting these closed versus them backing out?  Have most of them made it to closing?
Oct 03, 2007 01:20 PM #3
Rainer
2,373
Mathew Curtner
J. Roberts & Company - Maricopa, AZ

Rob,

Good question.

9 times out of 10 these deals do not go through.

Unfortunate for the tenant who should be using this as a chance to improve their credit for the aniticipated purchase.

Thanks for your response,

Mat Curtner, REALTOR

J. Roberts and Company

mcurtner@msn.com

480-570-4913

Oct 03, 2007 04:05 PM #4
Rainmaker
1,053,958
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F
Are you getting decent sized down payments?  I typically get at least 3-4K as a bare minimum amount.  Anything less than that and I can just rent it out without the purchase.
Oct 04, 2007 12:51 PM #5
Rainer
136,295
Bill Exeter
Exeter 1031 Exchange Services, LLC - San Diego, CA
1031 Tax-Deferred Exchange Expert

Hi Mat,

Do you get involved with 1031 exchanges when the properties ultimately sell and close?

Jan 15, 2008 01:29 PM #6
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Rainer
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Mathew Curtner

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