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Obviously the Owner prefers a straight sale. But due
to the financing problems in the market, he is open to discussing a Lease
Purchase option with Qualified Parties. It should be pointed out
strongly that the Goal would be to establish an actual PURCHASE Mechanism, as
opposed to simply setting up a Rental Situation. Below are the basic
parameters for discussions to begin, keeping in mind that everyone's situation
my be slightly different, and that the owner is open to negotiation on the
exact details....
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The Lease Purchase Option Period would be for 2 years.
At the end of the 2 years, the Buyer would be responsible for coming up with
their own conventional financing to conclude the Sales Transaction.
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During the Lease period, the Owner would be responsible for
taxes, homeowner insurance etc. Lessee would be responsible for
contracting their own Rentors Insurance for their personal belongings and
liabilities.
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Tenant pays all utilities + should maintain yard
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Monthly Lease Payments would be set at $1000
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There would be an equal $1000 Refundable Security Deposit
required.
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The Non Refundable Purchase Option Price would be $3000.
This amount would be applied to the Sale at the time the Purchase Option is
exercised.
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The Lessee would receive a "50% Rent Credit" towards the
Down Payment
- on all Lease Payments made leading up to the actual Purchase during the 2
Year option period.
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At the time of a Successful Purchase Transaction, the Buyer
would have earned towards down payment the following amounts: The
Security Deposit ($1000 in this scenario) + the Initial Purchase Option
Amount ($3000 in this scenario) + 60% of all rent payments already
made. ($12,000 in this scenario assuming all rent was paid during the
24 month option period). That is a total of $16,000 of earned
Credit monies that can be applied to the purchase. (again,
assuming this exact scenario - these are example calculations).
Again, the above are parameters are simply guidelines, and
are based on a relatively firm purchase price to what the home is currently
being sold for: $169,900. But everyone's situation is different,
and the owner is open to customization of the details. |