If you have a prospective buyer interested in purchasing YOUR house, but has little or no money
necessary for the down payment, then a LEASE OPTION PURCHASE may be a viable alternative.


A lease option purchase gives YOUR prospective buyer the right to buy with little or no money down. 
During the next couple of years, your buyer can decide whether or not the house will be purchased.
In addition, the tenant-buyer has the privilege of purchasing YOUR house within a given time period
for a price agreed upon in advance.

In addition, a lease with an option to purchase allows YOUR tenant-buyer (not simply a tenant) to
rent your house for a fixed number of years.  The "option" portion of this purchase technique allows
YOUR tenant-buyer to purchase your house within a given number of years for a fixed price agreed
upon in advance.


A tenant-buyer usually takes BETTER care of your house because a
      plan to purchase it is more realistic compared to a renter.
 A tenant-buyer usually will pay a higher price for YOUR house as well
      as pay a higher rent if you make the offer ATTRACTIVE.
 A monthly cash flow is received to help with YOUR mortgage payment. 
      If you currently do not need money for the asking price (or near this price),
      then this is a GREAT strategy to implement.
 A lease option purchase is more suited for a "down" (a.k.a. buyer's market)
      and "bottom" market.  A down market exists when MORE people are sell-
      ing houses compared to buying them.  During a "down" market, buyers can
      name their selling price causing sellers to often accept less money.
      A bottom market exists when selling prices reach their absolute lowest
      level.  In this scenario, the number of buyers nearly equals the number of
      sellers.  Therefore, a lease option purchase could be the perfect strategy to
      use in a "down" or "bottom" market.
 A homeowner who bought a house with the intention of flipping or reselling
      it for a quick profit should consider this creative selling strategy.
 A homeowner who is "over-extended" or has bought another house as an
      investment should consider a lease option purchase strategy.  This strategy
      might alleviate the stress of owning a second house.
A homeowner whose house has been "on the market" either for sale or for
      rent for a long time period should consider a lease option purchase strategy.

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YOU, the seller, offer attractive financing to help a future tenant buy your
       property.
 As the seller, YOU can structure the paperwork so that you have no main-
       tenance, lower closing costs, and a non-refundable option fee.
 YOU, the seller, maintain ownership of your house until the tenant-buyer
       elects to buy for the option price.
 YOU receive tax benefits until your tenant-buyer exercises the option to
       purchase.
 If your tenant-buyer does NOT exercise the option to purchase your house,
      then you can continue to rent to this current tenant OR advertise that your
      house is available.

	Assumptions	Existing Monthly Rent	6-year Lease / Option
Monthly Rent		$1,250.00	$1,050.00
Average Stay	18 months		6 years
6 Years' Rent		$90,000.00 (1,250 x 12 mo. per year x 6 yrs.)	$75,600.00 (1,050 x 12 mo. per year x 6 yrs.)
Average Vacancy Length	6 weeks
*Re-Letting Costs
Commissions	$1,250,00
Advertisements	$500.00
Clean & fix up	$1,000.00
Utilities	$450.00
Lost Rent	$1,875.00 (1.5 months)
Total Cost per Vacancy	$5,075.00 (1,250 + 500 + 1,000 + 450 + 1,875)
Vacancies in 6 yrs.		4	0
Cost of Vacancies		$20,300 (5,075 x 4)	$0.00
6-Year Return		$69,700 (90,000 - 20,300)	$75,600 (75,600 - 0)
Net Improvement	$5,900.00 (75,600 - 69,700)

*This is a fee that a landlord or homeowner can charge if the
tenant terminates the lease agreement prior to its expiration.

***This table shows the benefit of a lease option for
the homeowner.  It shows that the seller would earn
$5,900 more over a 6-year period.

Doug Iles
The Beneficial Broker
c/o Beneficial Brokers, LLC
http://www.creativehomesellerstrategies.com
http://www.creativehomesellerstrategies.com/HomeSellerindex.html
http://www.creativehomesellerstrategies.com/Commercialindex.html
http://www.creativehomesellerstrategies.com/HighestBidderSale.html#T
http://www.creativehomesellerstrategies.com/ResidentialIndex.html
26 Gibson Avenue
Mansfield, OH  44907-1316
Business email:  askyourquestion@creativehomesellerstrategies.com
Home email:  diles1@neo.rr.com
Other email:  douglas.iles@huntington.com
TOLL-FREE business phone:  1-877-972-3847 or 1-877-97ADVISE 
Choose Option 1 to leave a message for Doug Iles
Choose Option 2 to request a 24 x 7 fax-on-demand company brochure
Choose Option 3 to request a 24 x 7 fax-on-demand owner financing brochure
Choose Option 4 to request a 24 x 7 fax-on-demand partial purchase brochure
Choose Option 5 to request a 24 x 7 fax-on-demand simultaneous close brochure
Choose Option 100 to listen to a foreclosure hotline recording
Choose Option 200 to learn about the Instant Equity Exchange program
TOLL-FREE business fax:  1-877-972-3847 
Home phone @ 419-775-5349
Cell phone @ 419-545-4446

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