Lease-Purchase - Posted by nastansell

Posted by Jonathan Rexford on July 07, 2003 at 22:23:33:

Check title, make sure your agreement allows you the most advantages to make a decent profit on buying right. The neat part of doing a lease option is that everything is workable.

Jonathan Rexford
www.homebodiesllc.com

Lease-Purchase - Posted by nastansell

Posted by nastansell on July 07, 2003 at 10:06:56:

I’m looking to do a lease purchase on a home appraised at about $128K. Plan is to lease for a year and then probably purchase. What issues should I be aware of and how are these deals typically structured? Can I get credit for the rent paid toward the purchase price? Reason I’m looking to do lease purchase is, I’m working on a one year contract that will probably go permanent at the end. My last couple of jobs have been contract short term assignments (3-6 months), so my job history is not the best but credit history is good. Any advice, suggestions, would be appreciated.

Re: Lease-Purchase - Posted by Ben (OH)

Posted by Ben (OH) on July 09, 2003 at 15:12:54:

Some more thoughts:

  1. get a good contract and be sure it protects the deal and yourself.
  2. check credit of the owner
  3. check payment history (at least get a current statement of mortgage payments)
  4. check the title
  5. do an inspection (may not have to be formal, but if you really want this place, and/or if you don’t know what to look for, you may want to pay for it just to know as much as you can going in)
  6. recommended that you open escrow with a title company and have the deed placed in escrow to smooth out eventual closing (and it shows your intent)
  7. get a direct payment system set up from you to the seller and from the seller to the bank and taxing authority if possible–it’s peace of mind for you to know that things are at least set up to be paid and for the seller to know how easy it’s going to be to collect your rent.
  8. record the option

Beware generic contracts! Be very specific with your offer and what you want in your written contract after you’ve hammered out your best deal with the owner.