Q: What is the difference between a lease option and rent to own transaction?
A: There is no difference. Essentially it is two different ways of saying the same thing.
Q: What are some benefits of selling my home on a lease option?
•Homes sell faster at a top sales price
•Largest pool of ready, able and willing Buyers
•Immediate positive cash flow
•Non-refundable option money
•No maintenance and landlording issues
•Immediate debt relief
•Sellers see our program as a great alternative to selling at a deep discount in order to compete with foreclosures and short-sales.
Q: Who is responsible for collecting the rent?
A: Rent is paid to a third party escrow company who will pay the Sellers mortgage directly.
Q: During the option period, who is responsible for the repairs?
A: The Tenant-Buyer will assume all cost for repairs…just as if they owned the property.
Q: What happens if the Tenant-Buyer decides not to purchase my home?
A: Our Tenant-Buyers are carefully pre-screened to ensure that they want to buy your home, and are financially capable of buying the home at some point in the future. In the rare circumstance that a Tenant-Buyer decides not to exercise their option to purchase the home, the Tenant-Buyer will forfeit their option deposit (down payment) in addition to any rent credit accrued.
Q: Why can’t I find my own Tenant-Buyer to purchase my home?
A: If you have the expertise to pre qualify potential Tenant-Buyers, verify references, understand and translate what credit scores are necessary to legitimately qualify for a Mortgage loan, coordinate efforts with a Lender to get them financed, and set up a closing, then finding a Tenant-Buyer on your own would be a viable option for you. If you lack the skill set in any of these areas, we are able to assist with our specialized experience facilitating lease option transactions. After our Tenant-Buyers move in, we work with lenders to help them repair and/or build their credit, so they can qualify for a new loan and then buy the property.
Q: What is the average time to sell a property?
A: Our average time to sell a home with a lease option agreement is usually between 30-45 days. We have facilitated transactions in as little as 4 days from listing. Without a doubt the Venture Option Advantage Program is the fastest, easiest and least expensive way to sell Real Estate.
Q: What about the tax benefits?
A: Now that your home is an investment property there are great tax advantages to a lease option agreement. A large portion of the income may be tax deferred until the Tenant-Buyer exercises their option to buy your home. Your tax adviser can tell you more.
Q: I’m concerned about “tenants” not taking care of my home! How can I be sure that this will not happen?
A: The difference between a renter and a Tenant-Buyer is that a renter knows they will only be renting your home, so they don’t care if they leave problems behind. A Tenant-Buyer plans on owning the home so they absolutely care about the property! We often see Tenant-Buyers making upgrades or renovations to the home to build equity.
Q: Can I get my asking price?
A: Because you are offering the Tenant-Buyer the time needed to get financing in place, they are willing to pay a premium for your home, eliminating the need to negotiate price.
Q: What is the typical length of the lease that is signed with the tenants?
A: The lease period is typically between 6-36 months, depending on the projected time frame for the Tenant-Buyer to qualify for a Mortgage loan.
If you would like to speak with someone about our Rent To Own Program, call J. Thomas Jeffery at 980-819-1915