Many years ago I sold my own house in the late 80's market by a lease purchase. It was a tough market with the savings and loan crisis. The idea is to get a deposit on the purchase up front and lease payments, basically rent over a period. In many cases some rent will be applied to the purchase price.
The reasons for a renter/buyer to do a lease purchase is to build equity and have more time to save a down payment. Many times it is a period to repair credit score. It works under the right circumstance and is a good tool. Lately, I have been asked by renter/buyers about it. I am starting to do these arrangements again. Unlike a lease option to buy, this is really a delayed purchase. Rent options do not have to be performed on by the renter/buyer. A lease purchase requires the lessee to purchase or forfeit their deposit and rent credits.
I have available new townhomes which we are appling the concept. They are in Upper Saddle River.
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Richard
REMAX Real Estate Associates-Richard Stabile- Realtor-Builder-Developer 201 573 8811 ext 331 Northern New Jersey's Number 1 new home seller !
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Hi Richard, This is a timely topic that I posted about a week ago..Lease With Option Might be the Answer for Baltimore Homes!
Margaret
Richard, In these times, this may be a time to look back in history and work with something that worked in the past and drag it into the present.
How do you protect buyer/renter from seller not paying their mortgage and bank foreclosing on the house
I have a feeling this will be our wave of the future too. I am shocked that many of the trustee sale purchasers haven't gone this route yet!
Richard you are right about lease purchases and the fact that it is an easy way to build downpayment monies. It is strange that I do not see it more often here.