Lease Option

Neighborhood Properties

How Does Buying A

“Lease Option” Home Work?

It's really very easy to understand. With a Neighborhood Properties “Lease Option” home, at the end of your lease, you have the "option" to buy the home at a predetermined price. Unlike other rental property, without a “Lease Option”, you are just a renter who has no rights to the house when the lease is up.

For that reason, one of our "Lease Option" homes is much more valuable than simply renting. In addition, you don't have to bother with the banks or mortgage companies. With a Neighborhood Properties “Lease Option” home you can enter into the agreement directly with our company and in most cases move in the very next day. This is just one of the many reasons, our homes sell so fast.

How Landlords Think

Most landlords of rental homes want to hold on to their properties for a long time. They want you as a renter to pay their mortgage payments and build up the equity in their property. But with one of our “Lease Option” homes, you are given the opportunity to build up equity for yourself, while you rent.

You will pay for this right or option to buy the home at the end of your lease at a predetermined price with your down payment money (known as "option" money). Again, what you're buying is the option at the end of your lease to buy that home and the equity you've built up in it while living there.

You can estimate pretty easily what the cost of a “Lease Option” home will be. Just look at the area and type of home you would like to live in. What are they renting for right now for just a regular lease?

A “Lease Option” for that same home would be about 10-15% more per month for rent and the “Option” money would be 5-10 times the amount of the monthly "rent."

Features And Benefits
of our “Lease Option” Homes

Our “Lease Option” Homes Offer Many Advantages Over Going To A Bank: For many people, this is the very best way to buy their next home.

Faster Equity Growth: Equity can accumulate much faster with a “Lease Option” home than with conventional financing (Home loans).

Your Rent Money Is Working Towards The Purchase Of The Home:
Each month that you pay rent, a portion of that payment will be credited towards your down payment or taken off of the sales price. So, you are building real estate equity.

Option Money Is Credited Towards The Purchase of The Home:
When you execute (sign) a "Lease Option" purchase contract, you must pay the option deposit (also known as a "down payment"). This money is your vested interest in the home and will be fully credited (100%) to either your down payment or taken off the sales price.

Minimum Cash Out of Pocket: When you purchase a home conventionally, you must pay closing costs, prepays and a down payment. With a “Lease Option” home,you pay only first month's rent and an option deposit. This will save you between 25% to 85% ($1,000's of dollars).

Sales Price Is Locked In: The sales price will be stated in your "Lease Option" purchase agreement. This means all the appreciation value is yours to keep.

Buying Power: Your buying power is drastically increased. You can get into one of our "Lease Option" homes for much less than what a lender requires (5-20% down plus closing costs and fees). This saves you $1,000's of dollars right up front.

Bad Credit Problems Will NOT Hold You Back: The qualification restrictions are nowhere near as strict as conventional financing. With one of our “Lease Option" homes you will be approved. In fact, one of our “Lease Option” homes can be easier than renting a home! Often times, the size of your down payment is why your real estate transaction will be approved.

You Get To Keep The Value You Add To The Home: If you make improvements to the home that will increase it's value, it's yours to keep when you exercise your option to purchase the home! So you can landscape, paint, upgrade, even add on to the house and it will all be yours.

Maximum Potential: You are putting out very little money to control a very expensive and potentially very profitable real estate investment.

Profits from Appreciation: Since the sales price is locked in before closing, any increase in property value will mean that your equity is increasing in the home.

Time Is On Your Side: Before you actually buy the home, you will have a lot of time to improve your credit, be on your job longer, save more money or find the best financing available.

Quick Move In Time: Move in time is typically less than one week (often the very next day) compared to conventional move in times of one to three months from the time the offer was made.

No Lengthy Escrow or Mortgage Approvals: With our company the decision to approved you for a "Lease Option" purchase will be made on the spot and will be made at the sole discretion of our company rather than by a lender who can take up to a month or longer to render a decision.

Minimal Maintenance: Large maintenance problems or any maintenance problems that exceed a certain amount of money will be taken care of by our company.

Peace of Mind: You will know that what you're paying each month is actually going towards something; your home equity and a good financial future for yourself and your loved ones.

To see our beautiful "Lease Option" homes click here.

Call Neighborhood Properties at 407-877-3344.