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Lease Option Benefits
Higher Sales PriceBy selling a property on lease option, or lease purchase you can ask for a higher price then usual. The buyer will pay more due to their inability to obtain financing to purchase a home.
Higher Monthly RentBecause you apply a portion of the rents to the purchase price, you are able to request a higher then normal rent when selling a lease option , or lease purchase.
Minimal RiskWhether your tenant excercises his or her right to purchase the property, you will keep the deposit and still have control of the property during the .
Realtor CommissionsBecause you are selling the property yourself you are able to avoid realtor commissions, which gives you more room to make profit.
TaxShelterOn a purchase to lease option property you will be able to write off the interest as a tax deductible.
Quality TenantsYour tenant is planning on owning your property and will treat it like their own.
Little or No MaintainenceNot only will your tenant take great care of your property, but they usaually will make improvements. You may also delegate certain maintainence tasks in thr contract.
Select Group of BuyersYou will be selling your property to people who are looking to buy a home, but are unable to get financing. You are advertising "Rent to Own" with financing and credit repair available. This will set you aside from other properties for sale.
Quick SaleYour properties will sell much quicker because of the large response of people who can't get financing to buy other homes.
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Lease Option Tenant Benefits
Rent is PaymentBecause the rent is applied to the purchase of the home, the tenant feels like they are making an investment rather then wasting money on rent
No Down PaymentThe tenant's deposit and monthly rent credits will go towards the purchase as a down payment. This eliminates having a large down payment at purchase.
Small Initial PaymentThe tenant can initiate the lease option, or lease purchasewith a small deposit and the first months rent.
No Property TaxesThe tenant can initiate the purchase of your property without having to pay the taxes until closing.
Credit RepairThe tenant will have time to improve their credit before they initiate lending to purchase property
Move InThe tenant can move in immediately because there is no wait for mortgage approval or loan processing.
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