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Sellers FAQ: Selling Your Own Home With A Lease To Own

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Sellers FAQ - Selling Your Own Home With A Lease To Own

FC Home Buyers specializes in Lease Purchasing and lease to own. The following information tries to answer most questions that property owners and sellers may have about Lease to own.

What is a Lease Purchase?

Lease Purchase/Lease to own is simply a lease agreement with the option for the tenant to purchase the property. The tenant/buyer makes monthly payments.. The Lease Purchase allows you to have your mortgage paid for, plus have extra cash flow every month in many cases.

How do I get my asking price?

You are offering the tenant/buyer a set price (known as the option price) at some future date. They are willing to pay a premium for your home. You don’t have to haggle over the price with the tenant/buyer. They know the price and they know there is no negotiation.

How much am I going to be charged?

Nothing!! We get paid by the tenant/buyer in an assignment fee. We assign the Lease Option to the tenant/buyer and they pay us an assignment fee. It costs you nothing!

I’m uneasy about having “tenants” in my house. Will they tear up my house?

The great thing about the tenant/buyer in a Lease to own, is that with the complete lease purchase system, they are intent on exercising their option. They realize that they are paying non-refundable money every month toward the purchase of the house. They don’t want to damage something that will be theirs. Often the tenant/buyer may make upgrades or renovations to the property. The difference between just a tenant and a tenant/buyer is that they are proud of their house and they care about it. It is similar to renting a car, and leasing a luxury car. If you rent a car, you are not too concerned if you hit a curb or something happens to it. You know you are going to return it and walk away. However, if you put down thousands of non-refundable dollars to lease an expensive car that could soon be yours, you are going to take VERY good care of it.

How is the marketing done for the tenant/buyers?

We are always marketing for tenant/buyers. They come to us from newspaper ads, driving by our houses, referrals, or finding us on the Internet. This site alone creates over 1,000 visits per month from tenant/buyers.

How can I lease option my house so quickly?

Given the large number of people that come to this site daily looking specifically for a lease purchase, our current database of tenant/buyers and the market that we currently face where fewer and fewer people can purchase, a lease to own is rapidly becoming the best alternative and therefore most properties are lease purchased within 60 days.

What about the maintenance?

The tenant/buyer is responsible for 100% of maintenance. Plus, we always recommend a Home Warranty so that the repairs are covered. You are responsible for the major systems such as structural, and roof, which fall under your insurance as a homeowner, for the first 30 days.

What about insurance?

You should contact your insurance agent for your specific needs, however, it is now considered a rental/investment property, and you can lower your coverage so as not to include items inside the house.

What about the tax benefits?

Until the financing is complete for the tenant/buyer, the house is considered an investment property for tax purposes. There are great tax advantages to lease purchasing, including the fact that a large part of the money you bring in is tax deferred. Your tax advisor can discuss your particular situation with you.

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