Attorney Roland Waller Explains "What is a Lease Option to Purchase?"

 
From time to time, it's nice to hear from another source about Lease Options outside of our 

own marketing material. In this instance, we have attorney Roland Waller explaining to you 

exactly what Lease Options are in detail. Roland is going to share with you the differences 

between a Lease with the Option to buy is and a "Lease Purchase."

 
It is crucial for you to know the difference. Not paying attention, you could find yourself in a 

bad situation if the "tenant-buyer" fails to pay you on time (or at all). Pay attention now to 

attorney, Roland Waller, explains to you the differences.

  

Want to Sell Your Property, "Rent to Own" and... 

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How to Sell Your Home "Rent-to-Own" in 7-14 Days... Without Any Commissions!

This video will explain in detail how Rent-to-Buy really works.

Landlord? 11 Questions You MUST Know The Answers To Before You Approve Another Tenant.

If I were looking for assistance with selling my property online, the following would be a list 

of questions that are important to me when deciding who to work with regarding the 

transaction. This especially holds true if I decided to work with someone who was out of 

state and with whom I may never physically meet or see.

Maybe You Can Relate to Some of the Following Concerns As Well

1. "Scams: The Internet is riddled with them. How do I know you are not one of 

them?"

Answer: You are correct that there are a lot of scams online. I would recommend that you 

always consult with a real estate attorney first, and never ever wire money to anyone.

2. "What is the catch? How do you get paid?"

Answer: The is no catch. We get paid by the "end" tenant-buyer to whom we assign the 

Option rights based on your pricing and terms.

3. "Does the Title stay in my name? What about the mortgage?"

Answer: Yes, both the title and the mortgage stay in your name as this is a rental with the 

"option" to buy and not a sale. 

 

4. "Do you have tenant-buyers for my specific house right now?" 

Answer: It's hard to say until we see your home and determine it is priced correctly. If the 

answer is "yes", then getting a tenant-buyer is easy for us.   

5. "What if they destroy my home? Then what?"

Answer: While anything is possible, recognize that a tenant-buyer is putting down a 

considerably large non-refundable cash payment that far exceeds that a straight-renter 

would put down (who has no intention of buying). Which is more risky?

6. "Do your buyers pay us directly?"

Answer: Yes, they pay you your portion (the "Option Fee") directly and our "Option 

Assignment Fee" will come directly to us.

7. "Are you licensed in my state?"

 

 Answer: No, we do not represent anyone but ourselves. We act solely as private investors.

8. "How fast can you find someone for our home?"

Answer: Typically 7-14 days when the rental amount is priced correctly. Longer if it is not. 

9. "Can my real estate attorney review your contracts once drafted?"

Answer: Yes, of course. We encourage that both your real estate attorney and accountant 

advise you as we do not provide legal nor accounting advice. 

10. "How do you qualify tenant-buyers? What's the process?"

Answer: We check everything except their credit scores, because if they had perfect credit, 

they could qualify for a regular bank loan and would not need you or I. They MUST remove 

any and all doubt, however, of any concerns of their current financial strength, so you feel 

100% comfortable. We sell all documentation to you for your review before assigning the 

contracts, of course. 

11. " I have my house listed with a Realtor. Can you still help me?"

Answer: Yes, since we are not Realtors in your state, and technically we are buyers of the 

"Option" contracts, assigning the contracts to an "end" tenant-buyer for a profit, there is no 

conflict of interest with your Realtor at all.

If you have had these questions and concerns in the back of your mind as you search for 

help online, solutions, and ways to sell your home without paying commissions or fees, you 

are not alone. 

Honestly, I don't blame you one bit. I would think these same things. My wish is that these 

answers have shed some light and clarification on who we are, what we can do for you, and 

have helped you better determine if working with us would be a good fit for your specific 

wants and needs. 

We Believe In Full Transparency and Full Disclosure (We avoid a lot of drama this way) we 

have fears and concerns on our end as well. At times, we have been "burned" by people 

that we have worked with in the past, trust me when I say, we understand. Even with 

contracts, every once in a while there have been sellers that have tried to cut us out of the 

picture and steal our buyers we have found for them. 

So...concerns really can go both way, correct?There is an old saying that goes to the effect of: "That which we compromise to gain, we 

ultimately lose."  

What Is The Point?

The point is that you always do the right thing, and win in the long term.
 
If you still have questions regarding the ones above or others (this is not an exhaustive list 

by any means), please reply back to this email now. I will personally answer any questions 

you may have, and there is no commitment to with with us. Our goal is to help you, the 

"end" tenant-buyer, and ourselves win. It's a "win, win, win" for all parties involved. We do 

not want you spending thousands of dollars on needless commissions or fees, or ultimately 

having to lower your price over and over again, because your house has been sitting on the 

market collecting dust.

 

No Equity? No Problem. Sell, "Rent-to-Own" Even If You Owe More Than Its Worth.

Many people think you need to have equity in order to sell your home, "Rent-to-Own".
 
The truth is that you do not need any equity.

Here is are the following reasons:

• Most often than not, Tenant-Buyers are interested in getting some of the benefits that come along with home ownership without the hassle of qualifying for a bank loan today. 

• You are not going to be hiring a Realtor, so you do not need to pay any 6% in commissions or fees from your equity.

• Selling on terms, and not for cash today

   
Because of these reasons, you do not need any equity when you sell "Rent-to-Own". In 

fact, you may even be "under water" a little bit when it comes to owing more on the 

mortgage than the home is even worth. Not to worry, because the solution to this challenge 

is to extend out the lease term even longer. Generally, lease terms are 1-3 years, if you 

owe more on the home than it's worth, just extend out the lease term to be longer, allowing 

the market to correct itself.

Admittedly, markets will not always, "correct" in your favor, but it could. The truth is that 

neither you or the buyer has any control over the market regarding your home's market 

value when you sell your home, "Rent to Own" (A.K.A Lease with the Option to buy). You 

and the your buyer will both be making the best "educated" guesstimate as to what 

direction the market will turn towards. Sites such as HousingPredictor.com can assist you in 

making this educated decision, remember, the market itself has the the final word on this 

matter, not you nor "end" tenant-buyer. 

The truth is, most home owners would rather sell their home out right and get paid cash

today, compared to selling their home, "Rent to Own". If a home owner doesn't have any 

equity though, and they need "mortgage relief" meaning, they have to:

• Find a way to have their mortgage paid each month due to a death in the family

• Find a way to avoid becoming a landlord

• Move out of state to take a new job

• Find a way to get their home sold, because selling, "For Sale By Owner" is not working, so...

...selling, "Rent to Own" can be a wonderful option that will give them the relief they are 

looking for.

When structured correctly, would-be landlords, no longer have to landlord and can create a 

"hands-free" rental property with the potential upside of selling in a few years compared to 

having to fix leaky roofs and sinks. Not enjoyable. 

 

As a matter of fact, you and the home owner, can receive a non-refundable security deposit 

2-3 times the normal amount right from the start. This security deposit is also commonly 

known as an "Option fee". This way, if the tenant-buyer decides they are not going to buy 

your home for whatever reason, you get to keep the Option fee, you then get the house 

back, and you can easily place it back on the market again and get get another 

non-refundable Option fee from a another tenant-buyer.

Straightforward.

Want to Learn More About How to Sell Your Home, "Rent to Own" So You Can Get Your Full Asking Price and Pay Not Commissions?

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Property Owner? Sell Your Home, "Rent-to-Own." Tenant Pays First $5,000 In Repairs.

You would think it would be difficult getting a tenant-buyer to pay the first $5,000 in any 

repairs that the property needs. It's easier than you actually think though. In fact, when 

selling Option rights to homes across the country, we have never had a problem getting our 

tenant-buyers to pay.   

It really comes down to adding a clause that would state something to the effect of the 

following:

"Tenant-Buyer(s) responsible for the first $5,000 in any and all repairs to the home 

during the lease-option period. All needed repairs must be first approved by the 

home owner(s) before any work is performed, in writing, and all work must be 

performed by a licensed and bonded repair man"



If a home is around the $200,000 Option price range, I use the $5,000 range for repairs as 

a rule of thumb. If the home is a higher end property, for example, with a $500,000 price tag 

or more, don't be afraid increase this amount to the first $10,000 in repairs etc.

 

You will be amazed how easy it is to have your future tenant-buyers agree to this. This is 

not because you are taking advantage of them in anyway. It is simply because the 

exchange for equal value, the tenant-buyer receives a lot of perks that make agreeing to 

this arrangement "a piece of cake" such as: 

• Having a portion of their monthly rent be applied towards the purchase price each month

• The potential to achieve home ownership, instead of wasting their money in rent

• No banks to worry about for 1-3 years

• No credit checks required for them to rent-buy the home

• And more....

Interested In Learning More About How a, 

"Rent-to-Own" Sale Could Work for You?

 

"Auction" Strategy: How to Quickly (and Easily) Get 20% More for Your Property.

 

Can someone really sell their home in only 7 days, and get a price that is 20% higher 

than the market value?

When you sell your home with our "Auction" strategy and with terms, this is all possible.

By selling your home on a Lease-Option ("Rent-to-Own") along with our "Auction" strategy 

that we use to move our properties within a week or less, you place yourself in a special 

position of control that most other home sellers never experience.


 

The "Auction" Strategy That Sells Your Home In Just 7 Days

 
Here is the breakdown of how it works:

First and foremost, you market your property to tenant-buyers in such a way that appeals to 

them, and in a way that you gives you the competitive edge over your competition.

By having the tenant-buyer put down a sizable payment (the Option fee), you allow them to 

qualify for your property without having perfect credit, or other appealing terms such as 

having less than the bank required time on the job or down payment etc.

Make sure your rental price (the most important part of your pricing) is at market rent value 

and not above it. 

You then invite all interested tenant-buyers to a one hour home showing on one particular 

day (preferably a Saturday or Sunday)You confirm with all tenant-buyers that they are 

committing to coming during the same one hour block of time so they all can see each 

other at the same time. This creates the feel that they are in an "auction" type scenario, 

causing them to realize that they better decide quickly if they are going to make an offer on 

the home or not.

Getting Higher-Than-Market Value....For Your Home

If you have implemented the strategy as described above, and priced your property 

correctly in correlation to it's condition and location, you should have good turn out on the 

day of your showing ("auction"). When you implement the method that I outlined, you will 

not have people insulting you with low ball offers for your home. Instead, you will have 

people bidding upward of your initial asking price. 

 Let's not forget the fact, from the beginning, you are able to ask for 20% above the market 

because in exchange, you are giving leniency for poor credit (assuming they are in strong 

financial position today and their poor credit is a thing of the past, of course), and you are 

also giving them 1-3 years to fix their credit scores, save up for the bank-required down 

payment, and/or fulfill more time on their job, so they can then qualify without a hitch. 

I usually suggest a longer lease-term period (3 years) the higher in price you go, justifying 

your higher price, since you maybe higher than the current market pricing.


 The Important Points to Remember Before Using Our "Auction" Strategy

• Make sure to price your rental amount at market or a little lower to get the most amount of tenant-buyers to attend your home showing (a.k.a auction). Use sites such as RentOMeter.com, Zilpy.com, or Zillow.com to get an idea (not an exact price) on what your rental price should be. 

• Schedule the showing for a one hour period on one day only.

• Extend out your lease term in direct correlation to the amount you are asking for the home over what the current market price says it should be

• Don't ask more than 10-20% over what the market price is currently

 

Property Owner? Your BEST Rental Price With These 3 Sites...Under 60 Seconds

I want you to know that out of any of the terms and pricing that you will handling and 

proposing to your future tenant-buyers, the most important number is your rental price. 

Hands down. Sure, any reasonable person should and would want to sell your property at 

the highest purchase price. Since you are selling as "rent to own" (Lease with the Option to 

buy) though, if you are too high on your rental amount, your property will sit and it will not 

matter at all how much you want for your total purchase price.


Get this one number wrong and the only thing you will succeed at is attracting nosey neighbors.

When my team and I talk to sellers, letting them know that they can get their full asking price while

not paying any commissions or fees in the process, some sellers get dollar signs in their eyes and get

the crazy idea that they can jack up the rental price to whatever they want-and get it. This is the

furthest thing from the truth.


With the ease and accessibility of the internet at everyone's finger tips these days, all it takes is a few

seconds and key strokes for a home seeker to enter in the area they are interested in living, the

criteria they desire and the price point they want to pay. Within seconds, they can quickly shop you

along with your competition and see if you are priced right-or over priced.

 Take Craigslist for Example:

Yes, you are selling, rent to own, and you are giving great terms that may even justify a higher price,

but...that does not mean that the overall tenant-buyer population has any real idea of why they should

pay more for your property compared to your competition. You may be justified in charging an extra

$100-$200 per month for your rental amount, but charging more and actually succeeding in

renting/selling your property to a tenant-buyer is a whole other game.

 
I highly suggest that you make your money on a higher Option price (the purchase price you will sell

your home for) on the back end, compared to raising the rent on the front end (at least in the

beginning). Please keep in mind, there are other ways you can be fully compensated in exchange for

great terms that you will be extending out to your future tenant-buyer that won't price you out of the

market.


In order to price your rental amount correctly, here are three sites to easily and freely check how

much you should be charging. Please keep in mind, the following list is by no means a

comprehensive list. Please feel free to check other sources as well if you desire.


1. Rent-O-Meter.com

• You can quickly enter in your address, desired rental amount, and also gives you a "metered" range showing you if you priced your home too high, too low or just right.

• Basic free report limit is 10 reports every 30 days

2. Zilpy.com

• Shows how the target property rent compares with the neighborhood, zip code and the city

• Zilpy Cashflow Report is used by thousands of Landlords, Real Eastate Professionals and Investors across the country

• Uses advanced data mining algorithms

3. Zillow.com's "Rent Zestimate"

• Zillow's estimator tool called "Rent Zestimate" is Zillow's estimated monthly rent price, calculated using a proprietary formula. It is a starting point in determining the monlth rental price for a specific property. 

• They key thing to understand with all three of these sites here is that you can plug your property's info in within a few minutes, getting a pretty good idea as to the amount you can charge tenant-buyers for your rental price. 

• Do not get ambitious and raise your rental price several hundred dollars more than the market rent.

• The only thing you will succeed by doing that, is going nowhere fast. 

• Make your money on your Option price (purchase price), instead of over pricing your rental amount.

Attorney Bill Bronchick Explains the Difference Between Lease-Options and Contract for Deed

 When you're thinking about selling your property with creative seller financing such as a 

lease with the Option to buy, or a "Contract for Deed" (also commonly known as a "Land 

Contract") you really need to make sure and decide how much control you want to give the 

"end" tenant-buyer and/or Buyer when you sell. I am not an attorney, therefore I don't ever 

give out any legal advice. I do have a short video for you though with real estate attorney 

Bill Bronchick, who explains the differences between the two types of contracts. This will 

allow you to make the most educated decision and help you decide which of the two 

options are best for you. 

Crucial Differences to Consider Before You Sell  

Using Either a Lease-Option or a Contract for Deed

When you work with home owners, wholesale real estate investors, landlords, property 

managers, and Realtors, I have noticed a fair amount of confusion between these two exit 

strategies. The objective of this blog post and the video I shared, is to help you understand 

and know the fundamentals of both before you enter into a contract. 

Lease-Options:

• Ordinarily you can safely collect 3-5% upfront (non refundable) and if the "end" tenant-buyer fails to pay their rent on time (or at all). you can evict them.

• This exit strategy is not considered a sale because the tenant-buyer has the "option" to buy and the "option" not to buy.

Contract for Deed:

• Ordinarily you can ask for 10-20% down upfront (non-refundable), and if the end buyer fails to pay their mortgage, you will need to foreclose on them.

• This exit strategy is considered a sale.

Landlord? Here's How to Avoid the Tenants from Hell!

 
"Daniel, what happens if your tenant-buyer wrecks my 

property and becomes the Tenant from Hell?"

Key differences of Having Only Tenants Versus Having "Tenant-Buyers"

 Most of the time, people that we initially work with don't know the differences between a

conventional tenant and "tenant-buyers" that we work with, naturally they are worried that 

they will get stuck with the dreaded "Tenant from Hell."

 The Burden of Having Just a Regular Tenant

Let's face it, we all have heard horror stories of horrible tenants destroying the property 

owners homes. There is no denying that these types tenant exist. We fear that we are 

going to have to deal with one of them. Unfortunately, they make it more difficult and give 

good tenants who actually take care of their rental a bad name.

Here is why:

• It's human nature to take of what you personally own (or will own in the future). Think about this... We don't wash our rental car, but we will wash the car that we own and take good care of it.

• They don't see your property as theirs, therefore they have nothing to look forward to regarding your property in the future. You do, but not them. Thus, there is real reason for  them to take care of the property as if it was (or will become) theirs.

• Tenants themselves have very little "risk" and "consequence" when you look at the big picture. This is because they only put down a very small refundable deposit (equal to the first month's rent) which they will get back at the end of their lease agreement so long as they have taken care of the property till the end.

 

 

Benefits of Having a "Tenant-Buyer" 


You may have figured out by now, a great tenant is someone who:


• They see the property as if it was theirs (or will soon be).
• Wants to achieve home ownership, and not just rent a home for a specific time period of the lease and then have to move on.
• They have something to look forward to with property they are currently living in. 
• They have real "skin in the game" by having to put down a considerabaly large amount of money upfront (that's not refundable from the start), so they have a lot to lose if they walk away from the property.
• You have someone who with written permission ahead of time from the home owner, will improve the property such as painting etc. Our tenant-buyers are actually responsible contractually for the first $5,000 or more sometimes-in repairs.
Conclusion


I understand your concerns.

Believe me.

I know and understand that you do not want to put someone in your home that does not 

appreciate it, then turns around and wrecks the property, only to leave you stuck with the 

bill.
 
I get it.

While there are no guarantees in life and even with a tenant-buyer that we send you, my 

hope is that the information that I provided for you above will give you some "food for 

thought" on this subject and show you that most assuredly, that again, while there are no 

guarantees, at the very least with our tenant-buyer we send, you have someone who is 

willing to give you a large, non refundable deposit for your protection.





Not to worry, we of course:


• Check their income for the last 12-24 months, especially if they are self employed
• Get a pre-qualification letter from a lender with the full break down of their current credit situation, debts to income, past credit problems (if they have any), and anything else you may want to see and know. 
• Find out why they are not buying in the conventional way thru a bank now, and how long will they need before they can qualify (usually 1-3 yrs)
• References
• Check their past rental history to make sure they will be always on time.
• Do a full background check looking for past evictions and/or felonies.
• A letter from the tenant-buyer if there are gaps or causes for concern.
• And more....

All of this would then be presented to you, your realtor and/or attorney for review before our 

assigning of contracts, this way you are never left in the dark as to who you are getting as a 

tenant-buyer-never!