05/28/2020
Lease-to-Own
3 beds 1.75 bath 2 of the bedrooms are upstairs and 1 is downstairs. The downstairs has a separate entrance if you want to rent it out.
Current Value: $149,90
Monthly Payment: $995 plus Taxes & Insurance ($129.66) = $1124.66, due ON the 1st of each month via ACH.
Down payment: 5% ($7495) Fully Refundable or Credit when you refinance / purchase in your name.
Total Move In: $7495.32 ($7495 plus three (3) Monthly Payments ($3373.98)) = $10,869.30
If you can afford the closing costs and the monthly payments, we’ll just give you the place. All we ask is that you refinance it in to your own name before the end of the term of our agreement (typically 2 to 5 years), and if there happens to be any equitable growth or appreciation, we’ll split it with you.
The Deed to the property is to be held in escrow, via a title holding trust, until you refinance in your own name.
You will be named the “Resident Beneficiary” of that trust so you will be treated as if you were already the owner by the IRS for tax purposes. In other words, you will be able to enjoy all the bundle of rights of ownership during the lease term.
As the Resident Beneficiary, you will have the 1 st Right to Purchase (Option). You will also benefit from the appreciation and note reduction during the Lease-to-Own term.
The lease will be a “Net Lease”, meaning YOU and no one else will be 100% responsible for the property in every way. We are not landlords or property managers. If something breaks, YOU fix it.
This is also an IRS requirement to be able to be entitled to the tax benefits.
You may also choose to improve the property and of course are encouraged to maintain it. The better you take care of the house, the more it will grow in value and the more equity you will build.
The initial term of the lease will be 3 years with the right to extend the term up to 5 years if necessary.
We will refer you to both a licensed and qualified mortgage lender and a credit building specialist to prepare you take title in your own name.
Most Lease-to-Own beneficiaries require 24 to 36 months of “on-time” monthly payments to get qualified for their own financing.
