A lease option is essentially a purchase contract combined with a rental agreement. The buyer leases the property for a specified period of time and then has the option of purchasing the property before the end of the lease agreement. Sales price, length of rental, closing costs, and maintenance are all negotiated much the same as a conventional real estate transaction. A lease option, if properly utilized, is both a seller and a buyer’s dream come true because it can eliminate many of the negatives normally attributed to the selling and buying of a home.

We present a monthly lease amount as well as a pre-determined sales price that is agreed to by all parties. A lease option/purchase is basically a monthly lease set up over a pre-determined period of time. At the end of that time, we purchase the home from you for whatever the pre-determined price is. 

The basics are simple:

• You rent your property to 412 Real Estate Solutions, LLC
• You give 412 Real Estate Solutions, LLC the right to buy your property for a set price.
• 412 Real Estate Solutions, LLC places on of our Tenant/Buyer in your property.
• Our Tenant/Buyer receives the right to buy your property from you from us.
• Out Tenant/Buyer purchase the property once we've got them qualified to do so.

They can afford the monthly payment and will qualify within 1 or 2 years. Everyone of our prequalified Tenant/Buyers have been screened and qualified. They've talked to a mortgage broker and a credit specialist before we put them in the house. We work with them to get them qualified to take out a loan and pay off the house.

These buyers will also give you full market value for your house and full market rent during the lease period… sometimes a little bit more than that.

Think about it. If you knew you were going to be buying the house you are currently  in would you ruin it? Or would you take extra good care of it?

Our Tenant/Buyers take care of the property better than a normal tenant would because it will be their property. AND we have a written agreement that makes them responsible for all repairs to the house. So if the furnace goes out, they have to fix it. If the toilet is leaky, they have to fix it. There is no late night calls in the middle of the night.

What if the Tenant-Buyers don't perform you ask? This is a worst case scenario and rarely has every happened. For starters, they are legally responsible for any damage they make. Second, we hold a substantial down payment on the property. So in the very rare case there is any damage done we have the funds (and crew) to make the necessary repairs. The reality tho is this scenario is very, very, rare, and if it happens the tenants leave on good terms. In this case we simply put in another qualified candidate until they purchase the property.

Not a dime! Simple as that. The price and payments we agree upon is the set price. There is NO hidden commission, NO closing cost, NO fees. NO nothing!

So how do we make our money you ask? We make our money from our future Tenant/Buyers. We manage the property, keeping it in good condition and being patient until our Tenant/Buyers purchase the property. Our money comes from the sale of the house to them. Never from you.

We make your monthly payments while our Tenant/Buyer is qualifying for a loan. All your expenses related to the house are taken care of. Will a Realtor do that? No.

We also can start making payments immediately. No making you wait months to receive any money.

We don't work for commissions. And, because our profits are made by selling for slightly higher than what we buy for, we have a vested interest in the house and in making sure it gets sold. You save thousands by not paying commission, closing cost and fees.

Another advantage is that our objective is to put only high quality Tenant/Buyers in the house since we make our profit by selling for higher than we buy. Since we guarantee all minor maintenance on the house, it is in our best interest to ensure that our Tenant/Buyers will take care of the home and eventually secure financing to cash you, the seller, and us out (by paying it off). This means that we put our Tenant/Buyers through an intensive pre-screening process before they are even permitted to look at the house. 

As far as price goes ...It doesn't really matter to us how much you want for your house, but if we put it too much over market value, we won't be able to find a buyer. It all comes down to time.

But there is no reason we shouldn't be able to get you full market value or maybe a little more because the way we are selling it. Our Tenant/Buyers are very motivated and will pay for the opportunity to be in a position to purchase a house with our Rent-to-Own Program. Our goal is to find a solution that works best for you and your needs

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 12 months on the lease option. Since everyone's credit history and circumstances vary, that time period can be shorter or longer for the tenant/buyer that we eventually put into the home. Because of this, we cannot guarantee the exact time our Tenant/Buyer will secure financing. However, until our Tenant/Buyer qualifies for financing, we continue to pay all the expenses related to the home. It is also in our best interest to get our Tenant/Buyer a new loan as soon as possible, since that cashes us out (gets us paid) as well. We aggressively work to get our them financed as soon as possible so everyone involved benefits.

These are always options available to you. The difference would be that you are responsible for your monthly payments, maintenance and repairs during the selling period. You 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. Renting during this period opens entirely new difficulties that accidental landlords often overlook, especially when you are trying to show the home and sell while renters are living there.

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, process all the paperwork and 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.

Our Tenant/Buyers are carefully pre-screened to ensure that they want to buy the house and are able to do so at some point in the future. However, circumstances can change in someone's life, such as an unexpected job transfer that can 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. Remember, we make our money when your house sells.

You won’t because your tenant will be us, 412 Real Estate Solutions.  We’ll agree on a lease term—2 years, 5 years, whatever you want.  And that’s the end of your vacancy problem. If our Tenant/Buyer moves out, then that’s our problem, not yours. We’ll keep paying like clockwork.

You’ll have 4 levels of protection. First, we will purchase a homeowner’s warranty at no cost to you and will keep it in force for the life of the lease. Second, the Tenant/Buyer will be required, by the terms of his or her lease, to perform all regular maintenance and repairs. Third, if any problem comes up that the Tenant/Buyer is unable or unwilling to perform, we will do it. And, fourth, you’ll maintain your homeowner’s policy to protect against incidents covered by insurance (which we pay for).

For the most part, as the homeowner you don’t have to do anything.  We take care of all the paperwork as well as the placement of Tenant/Buyers and cover the monthly payments. And because you don’t have to worry about the day to day repairs, the only thing you need to decide is where you want your monthly checks sent. Not much of a different position than a bank is in when giving a mortgage actually. It is really quite simple.

It depends on what you're asking exactly? Are you asking how you'll know we are making your monthly payments? Thats simple. Odds are you already have online access to your mortgage, right? This will continue during our deal. You will have access online to see your statements and that it's being paid every month. We can also forward you documentation showing payment each month if you're worried. Transparency is number one.

If you're asking how can you trust us to pay your mortgage each month. Well that's simple also. We've been in the business of buying houses this way for 15+ years. We keep large amounts of cash reserves on hand to ensure that no mater the issue or situation that arises we can make your payments. Plus it wouldn't be beneficial to us after spending the time and money on all the repairs and renovations we make to the house to simply throw it away.

We've been in the business of buying houses this way for 15+ years. We've done 100's of deals like yours. We keep large amounts of cash reserves on hand to ensure that no matter what happens we can make our monthly payment to you. That is our promise and guarantee. We are equally invested in the property as you are. Especially after making the repairs and renovations on the property.

We can set it up however you like. Some of our sellers prefer automatic electronic payments each month directly to their bank account. Other sellers prefer to go old school and have a check mailed to them. Others prefer us to set up an escrow account where we mail the rent to the escrow account and that account pays the mortgage. (You can call the escrow account anytime and request a statement of activity so you can see when the rent was paid and when the mortgage was paid.) What we normally do is set it up to automatically pay your lender each month and send you the difference. That way you won’t have to worry about a thing. We do all the work and you sit back and collect money!

This an absolute worst case scenario and also very unlikely. To be honest it has also never happened. We wouldn't be in business today and for last 15+ years if it did.

However, as a smart investor, you should know the risk. If this were to ever happen, the worst thing is that you'd get your house back and keep any all down payments payments, monthly payments and appreciation. This is because you are the first position lien holder on the property. Any and all money you have received is yours. Any repairs and renovations we've made are yours. You not only get your money, but you get the asset back to go and sell, already ahead of where you started.

"But doesn't that mean I have to do a long and costly foreclosure?" Nope.. you don't want to do a foreclosure just as much as we wouldn't want to do one. Why is that? The good news for you and bad news for us.. is we have a lot of assets (other properties). Why would we put those at risk to hold your house hostage? The people who benefit from stalling foreclosures are home owners with nothing to lose - not investors.

There's no way that we can guarantee you that a tenant won't damage your house since you or we won't be living with them. But under the agreement that we will have with you, as the seller, if that happens, we will repair it at our expense. Our objective is not to find a tenant ... my objective is to find a buyer who will eventually own your house. We screen them thoroughly before entering into an agreement with them. Damages are rarely a problem. In fact, in most instances we have found that our Tenant/Buyers many times have improved a house with new flooring or some other upgrades, such as a new kitchen, or fencing. Again, if it does happen, we'll fix it, and we put that in writing so you are safe.

Our attorney handles all of the necessary documents to make the transaction happen.  And the best part is that you don’t need your PhD to be able to read them. Of course, you are always welcome to have these items reviewed by your real estate agent or lawyer at any time during the course of the transaction. We want you to be 100% comfortable with everything before moving forward.

Not a problem! Some people have very specific goals from the sale of their home. If any of the solutions we present don't work for you, or the numbers for each one aren't quite what you want, tell us! We're more than happy to work with you to make this a win-win for everyone. Worst case scenario is we can't come to an agreement and we part as friends. Plus if we can't help you, we can point you in the direction of someone who can.

If you have any other questions or concerns, please feel free to contact us. If you like the ideas/offers proposed but the numbers don’t work for you, let us know. We are always willing to work to find a win-win situation. We have done hundreds of these transactions with others before you, so we are confident we can help you with a stress-free agreement and closing.