Lease to own how to

[texrus]

Hi there, my family is moving from Texas to California and we are having trouble selling our house. We live in Round Rock, TX and were considering a lease-to-own if we can't sell it. I was wondering how do you go about doing that. Do we need an agent? How much does it cost? :confused: Pros, Cons, etc. Seems like it could be a good idea and from what I have read shouldn't cost too much or at least much cheaper than selling a house. Thanks for any and all suggestions.

[Executive Home Buyer]

Here is a guy I know of who owns a lease/option business who is very successful.

Here's his web address which also explains how the process works.

http://www.leasingtobuy.com/ltb/

Good luck!

Jean

[TeamRobertson]

I am not sure if it varies througout the United States but here in Ohio this is the way it works:

You do not need an agent although its always handy to help (I am a little biased haha!).

A regular purchase contract would be written up with a closing date set of 1-2 years in advance just like a regular purchase. The buyer/renter would put down a deposit and often times sellers will charge a small fee which gives you a cash up front for allowing the lease.

In the purchase contract in the addendum section you will include the typical lease terms, etc. Once agreed you will have a real estate lawyer draw up a lease for you. This will cost between $3-600.

If you have a realtor involved their initial commision is 10% of the first years lease, and then when the house closes in 1-2 years the regular 3-6%.

[IggysListing]

Definitely at least let attorney look over contract.
Make sure you get a financial commitment from the other party.
It can be a combination of deposit and extra payments.

[FastFreeOffer.com]

As Jean mentioned there's a growing number of investors who specialize in setting up lease-to-own deals for homeowners who are either having a hard time selling or want a faster solution than listing.

I don't know of any who charge the seller anything, in fact that's usually their biggest selling point. They're typically paid by the buyer by assignment and that is over and above your asking price (assuming your asking price isn't impossibly high).

I occasionally do these myself if the numbers are not attractive enough for me to buy the house or the house doesn't fit my investment needs. I don't operate in Texas so I can't help you out directly. But maybe I can give you an idea of what you should be looking for if you decide to work with one of these investors.

#1 They shouldn't charge YOU anything.
#2 They should have a track record of previous transactions or be working with a mentor who does.
#3 Most take all of the tenant/buyer's "option consideration" (that's like a down payment) in exchange for paying for all the marketing, qualifying, and doing all of the showings. Some split that upfront money with you but expect you to show the property and pay for some or all of the marketing costs.
#4 They should provide the appropriate contracts for your state/province so you don't have to pay a lawyer to write one up. (However you should have your lawyer look it over if you don't fully understand it.)

Hope that helps and good luck with your lease/sale!

[zatanaz]

Hello there,

Like other replies here, the law varies by state.
I would recommend for you to read and understand (good luck) Texas House Bill 1823 (2005).
In this bill the Texas law allows a lease with an option to buy real estate.
However, it only allows it for 6 months and it definitely does not allow the landlord to give credit back to the tenant.
So be careful, you can end up being sued and lose a lot of money.
My advise, inform yourself as much as possible before you do anything.

This by no means is legal advice, I'm not an attorney and I'm not a realtor.
I'm an investor in El Paso, TX and I tried to do a lease/purchase with one of my houses a few months ago and after reading a lot and talking to other investors decided not to. But then again, it might be possible.

Good luck to you.

[AAO]

Hi there, my family is moving from Texas to California and we are having trouble selling our house. We live in Round Rock, TX and were considering a lease-to-own if we can't sell it. I was wondering how do you go about doing that. Do we need an agent? How much does it cost? :confused: Pros, Cons, etc. Seems like it could be a good idea and from what I have read shouldn't cost too much or at least much cheaper than selling a house. Thanks for any and all suggestions.

Maybe you should search for help and information online. And there is a way. At http://www.americanagentonline.com you can contact real estate agents for free and chat with them.

It has a system wherein you can search for agents in your area and if those agents are online chat with them for free...and anonymously. :)

AAO
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