Posted by chris on April 07, 2000 at 16:14:15:
thanks matt. you da man!!
chris in ny
L/O FAQs and letter - Posted by Matt B
Posted by Matt B on April 07, 2000 at 15:02:20:
I am pasting the FAQs below to make it easier for anyone who wants them since I just can’t keep up with the requests for them. If anyone wants the letter, please e-mail me directly instead of posting a request here. Remove the NOSPAM from my e-mail address.
Here’s the one for tenant/buyers
Understanding Lease Options
Leasing with an option to purchase is an excellent method to move from renting a home to being an owner. It offers many advantages over the traditional methods of purchasing a home.
? No large down payment required. Instead you pay an amount up-front called ?option consideration?. This amount, generally 5% of the purchase price, locks in the purchase price during the term and gives you the exclusive right to purchase the property. However, you are not required to purchase. If you exercise the option, the option consideration is applied to the purchase price. If you do not exercise the option, it is not refundable. This compensates the investor/owner for keeping the property off the market during the term and for locking in a purchase price, regardless of whether home values increase.
? Rent credit. If you decide to purchase, an agreed-upon portion of your monthly rent is applied to the purchase price. This allows your rent money to be working for you, instead of being thrown away.
? Profit from any appreciation during the term.
? Time to check out the home and the neighborhood before buying.
? No up-front loan qualification necessary. In addition, when you decide to exercise your option to purchase, we work with many different lenders, so we can work with you to help you obtain the best financing for the best terms.
? Allows time to save additional money for down payment, fix credit problems, etc.
? No taxes to pay during your lease term!
? Quick move-in time. No lengthy waits to arrange closing. Look today, move in tomorrow!
Frequently Asked Questions About Buying a House by Lease Option
Q: Why should I pay option consideration when I can just rent by paying a security deposit and get it back when I move?
A: When you rent, your rent money is not working for you; it just disappears month after month. the option consideration allows you to move toward home ownership while still keeping your payments affordable.
Q: What if I decide that I don?t want to buy the property?
A: You are not required to exercise the purchase option; however, the option consideration is NOT REFUNDABLE should you decide not to buy.
Q: What if I need more time before buying at the end of the term?
A: In certain cases, it might be possible to renew the lease for another term. This would require payment of additional option consideration, and could require that the purchase price be renegotiated.
Q: What about utilities, property taxes, and homeowner?s insurance?
A: All utilities are the responsibility of the tenant/buyer. Until you purchase, all taxes are paid by the seller. In addition, we will maintain insurance on the structure and the grounds, but you should consider obtaining renter?s insurance to protect the contents.
Q: What about maintenance?
A: The tenant/buyer is generally responsible for up keeping and minor repairs, up to an amount specified in your agreement. For major repairs not due to misuse or negligence of the tenant/buyer, the seller would maintain responsibility.
Q: Where can I get more information?
A: If you have additional questions not answered here, please feel free to contact me at 412-555-5555.
It is our goal to ensure that the process of buying your home is a smooth and easy one for you. We strive for a win-win situation in all our lease option deals. You, as the tenant/buyer win by getting to own a home in a shorter amount of time than it would take you if you were trying to buy conventionally, as well as being able to immediately occupy your new home, while qualifying for a loan. We win by profiting from the sale of the home, as well as gaining 1 more satisfied customer. The reason that we are in business is, of course, to make a profit, as well as use our expertise in real estate transactions to assist home buyers in making the purchase of their home an easy one.
And the one for sellers
Frequently Asked Questions About Selling Your House by Lease Option
Q What are the benefits of selling my house on a lease option?
A When PA Home Solutions, Inc. lease options a house, we guarantee in writing that all maintenance, repairs, taxes and insurance will be paid by us while we are selling your house to a sub-tenant/buyer. PA Home Solutions, Inc. only deals with high quality people who are looking to buy, not just rent a house. When you sell your house by lease option, PA Home Solutions, Inc. handles all the marketing of the house. This includes paying for advertising, screening potential tenant/buyers, and showing the house. We want the process of selling your home to go as smoothly as possible, with no more headaches for you caused by buyers who tell you that they want the house, but end up not being able to qualify for financing. You are also relieved of having to pay double mortgage payments in the event that you have to move before you are able to get a buyer for your home. In short, PA Home Solutions simplifies the process of selling your home by handling all the details that waste so much of your time and money.
Q What are the advantages of selling my home by lease option over listing it with a Realtor?
A PA Home Solutions, Inc. makes your monthly payment while a sub-tenant/buyer is qualifying for a loan. All your expenses related to the house are taken care of. Try getting a Realtor to do that while listing your home! Another advantage is that PA Home Solutions is only interested in putting high quality tenant/buyers in the house since we make our profit by selling for higher than we buy. Since we guarantee all maintenance on the house, it is in our best interest to ensure that our tenant/buyer will take care of the home and eventually secure financing to cash you, the seller, and us out. This means that we put our tenant/buyers through an intensive pre-screening process before they are even permitted to look at the house. We don?t just work for commissions, we have a vested interest in the house, and making sure that it gets sold.
Q How long does it take before your tenant/buyer cashes me out?
A That can depend on a number of different factors. We work with many mortgage brokers that are usually able to get most people financed after they have paid for 6 months on the lease option. Since everyone?s credit history varies, that time period can be shorter or longer for the tenant/buyer that we eventually put into the home, so we cannot guarantee when our tenant/buyer will secure new financing. However, until our tenant/buyer qualifies for financing, we continue to pay all the expenses related to the house. It is also in our best interest to get our tenant/buyer a new loan, since that cashes us out as well, so we work aggressively to get our tenant/buyer financed as soon as possible.
Q Why don?t I just sell the house myself?
A That is always an option that is available to you. The difference would be that you are responsible for your monthly payment, your taxes, insurance, and any maintenance or repairs that the house needs while you are trying to sell it. You then need to try to find someone who can actually qualify for financing, wait for them to get approved, and hope that they don?t pull out of the deal, making you start the whole process over again.
Q Why don?t I just find my own tenant/buyer to put in the house?
A If you have the expertise to screen potential tenant/buyers, check references, know what sort of credit scores will allow someone to be able to be financed, deal with maintaining your home while someone else lives in it, work with mortgage brokers to get them financed, and finally set up a closing, then finding a tenant/buyer on your own would be a viable option for you. If you lack the expertise in any of these areas, we are able to help.
Q What if your tenant/buyer doesn?t buy the house?
A Our tenant/buyers are carefully pre-screened to ensure that they want to buy the house, and are able to buy it at some point in the future. However, circumstances can change in someone?s life, such as an unexpected job transfer, that make it necessary to move. In situations like that, we continue to pay all the expenses for the house, while we find another qualified tenant/buyer to put into the home.
It is our goal to ensure that the process of selling your home is a smooth and easy one for you. We strive for a win-win-win situation in all our lease option deals. You, as the seller of the house, win by receiving the assurance of knowing that while the house is being sold, all of the expenses are taken care of, and the house is maintained. Our tenant/buyer wins by getting to own a home in a shorter amount of time than it would take them if they were trying to buy conventionally, as well as being able to immediately occupy their new home, while qualifying for a loan. We win by profiting from the sale of the home, as well as gaining 2 more satisfied customers. The reason that we are in business is, of course, to make a profit, as well as use our expertise in real estate transactions to assist home buyers and sellers in making the sale or purchase of their home an easy one.
Re: L/O FAQs and letter - Posted by Julius Levai
Posted by Julius Levai on April 07, 2000 at 19:32:54:
Matt! Do NOT forget to send your classic camera for servicing at no charge. You WELL deserve it! People like You make this world a better place. Thank You! Julius Levai