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Lease with Right To Purchase—Why it might be a good thing to do.
Dated: October 29 2020
Are you considering relocating to the Phoenix Metro area and you really aren’t familiar with neighborhoods and aren’t quite sure where “home” is yet?
Or maybe your credit score isn’t where you’d like it be and you need some time to get it up to the point where you can qualify for the best loan.
Has a Bankruptcy holding you back? Is there just not enough for down payment yet?
We may have the solution for you! How would you like to “Try” before you buy?
Try on the neighborhood, Try on the house, the yard, the neighbors, the yippy dog next door.. you get the idea.
You want to find a place to rent but the rental options are simply just scarce, or you’re competing with several other applicants only to get beat out by someone perhaps with a little bit better income and/or better credit than you. Does any of this sound familiar?
There is a much better way to find a home to lease!
We put YOU in charge of finding the home you would like to lease.. we BUY the home for you, paying ALL CASH, (which eliminates the competition in most cases), and you lease it from us for one year renewal terms, up to 5 years.. or more. One of the cool things about this is that you actually have the right to purchase the home from us at any time after 90 days.. if you want.. you can exercise your Right To Purchase.. or not; the choice is yours.
This is not a typical “scammy” rent-to-own program. Most of those programs require you to put option money up front, or charge you a much higher monthly rent with a portion of your rent going toward your purchase, and they make your option price so ridiculously high, you’d never be able to qualify for purchase the home!
With our program, your rent is going to be the typical rate for the area. Your right to purchase price is only 3.5% on top of what we’re in the home for (what we paid for the house, tacking on closing costs, and estimated make-ready costs such as paint and carpet).
This 3.5% RTP (right to purchase) price is locked in up front, before you even sign your lease.. This can never change. The benefit of having this locked in price, is that the appreciation rate in the Phoenix Metro area has been around 9-10% on average for the past 5 years. This means you instantly have about 6-7% built in equity right out of the gate!
Let me give you an example…We purchase a home in Phoenix and our all-in costs for $300,000. Your RTP price is $310,500 any time during the first year.
The home is VALUED at at $327,000 by the end of the first year, and by the way, this is based on the AVERAGE appreciation rate.. it could be even higher!.. So at the end of year one, you could potentially have over $16,000 in built In equity! Not a bad deal if you ask me.
Let’s say you waited two years.. you’d have over $34,000 in built in equity, (home worth apprx. $356K, your RTP is $321, 368) after 3 years you’d have approximately $55,000 (home worth $388,000) in net equity $332,615.. WOW! By year FOUR, ideally you’d have so much equity that you could get a conventional loan and not have to pay the required mortgage insurance.
You’re basically getting all the rent you’ve paid.. back in your pocket! Technically, you could turn around and sell the house the next day and pocket the cash.
If any or all of this sounds appealing to you.. check out our interview on ABC15 here: https://www.youtube.com/watch?reload=9&v=UxsyL_r91VY&feature=youtu.be&fbclid=IwAR22i7ONMuP4oxbh3WFLnP2aIrXzaqEAz2Y_BR_OlBy77eNvRdC8l0MHsvY
Or feel free to message us here on our website https://www.thejgroupre.com/ or give us a call at: 480-382-2973.
You can also email us at: email@example.com
Full-time Realtor based in Southern California and the Phoenix Metro area. Expertise in assisting 1st time home-buyers, Lease-to-Own clients, and Listing/Marketing homes for sale that result in multip....
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Are you considering relocating to the Phoenix Metro area and you really aren’t familiar with neighborhoods and aren’t quite sure where “home” is yet?Or maybe your credit