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Rent 2 Own, Inc
FL. Lic Real Estate Co.
417 W. Vine Street
Kissimmee FL 34741
 
Office:     321.284.1909
Cell:     321.948.1949
Fax:     407.386.7105
Email: Alex@rent2own.net
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Alexander Barkhatkov
FL. Lic Real Estate /
Mortgage Broker
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Lease Option Contract

Lease Option Contract is different from Lease Purchase Agreement. Lease option Contract allows the buyer to lock in their purchase price, monthly payments and or terms just like lease purchase contract would, how ever it is the buyers choice to exercise their purchase or not.

For instance if the buyer decided not to purchase the property, the buyer would simply terminate their option at the end of their leasing term and with no farther liability what so ever could move on to purchase any other property that would be available on the market at that time.

The option fee normally does remain with the owner (Optionor / Seller) and is none refundable to (Optionee Buyer). The original (Optionee Buyer) would still have to leave the property in good condition and that would pretty much satisfy any claim that the (Optionor / Seller) may or possibly hold.

You might ask why in a world would I do get involved with lease option contract and loose my money? the answer is in asking your self right away the following:

  1. If one or two years from now property value declines even farther, wouldn't you be intrigued in buying cheaper home that would be bigger, better and or located in more desirable location?

  2. If one or two years from now, you have better credit , income and or job, as well as you are now able to qualify for better financing and or home, would you not buy a better larger home if one was available?

  3. If you have locked in a purchase price one to two years prior of $200,000.00 and the market conditions improve to the original value of $300,000.00 for the property that you have locked in @ $200,000.00 on an option contract would you not be intrigued in selling and making $100,000.00?

Option Contracts are a great way to secure real estate and make money. The buyer does have more control then the seller pertaining to the seller  pretty much waiting to see if the buyer is actually going to buy.

On the other hand the seller does gets residual income right away in a form of down payment and or none refundable option fee, and at the same time securing their risk by understanding that on time monthly payments are now going to be made in order for the buyer to qualify for financing, this is a much better scenario verses just renting a home.

The possibility of the buyer putting a significant down payment forward as well as upgrading the property always exists. Also in the event of default, the seller would have retained the down payment money, and have enough funds for vacancy, rehab, marketing as well as real estate commissions in order to to resell the home.

Other Seller advantages are:

  1. total Liability relief of PITI Payments (Principal, Interest, Tax and Insurance)

  2. HOA (Home Owner, Condo Owner Association) Dues

  3. Principal buy down

  4. Depreciation (Property now is an investment property and can be depreciated)

  5. Ultimate Tax Shelter

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