A Purchase Lease Option is when a tenant buyer enters into a lease with the option to buy the property at a negotiated price in a fixed period of time.

How it works for the buyer:

• A challenged Buyer lives in the property they are interested in purchasing while paying monthly rent. A fixed portion of this rent goes towards their down payment if they decide to exercise their option to buy the property. Many times, the buyer gets the property at below market value, and by the time they own the home, have a decent amount of equity in the home.
• The buyer is usually only required to come in with a minimal down payment and are not required to have good credit. The challenged buyer pays rent to the seller every month, with the option to purchase the property at a certain fixed future date (usually 2 years) at a pre-determined amount. The purchase price is agreed upon by both parties and is stated in the initial contract.
• The buyer will loose a pre determined deposit if they decide not to exercise the option to buy, but otherwise have nothing to loose with this agreement.

How it works for the Challenged Seller:

• This program works the best for individuals who are struggling with their mortgage payments each month. The program will not put money in your pocket automatically, but will keep you from foreclosure.
• The Challenged Buyer lives in the property and pays rent each month. The Seller will benefit from his mortgage being paid each month by the potential buyer. In fact, the seller is building equity with each payment made by the potential buyer, while still benefiting from market appreciation and the tax benefits of being a home owner. The seller also avoids the landlord trap, and will not loose anything if their potential buyer decides not to exercise their option.
• In fact, if they don't exercise their option, the seller walks away with the deposit, plus their mortgage principle has been paid down for the amount of time the tenants were living in the property.

A Sandwich Lease Option consists of three parties, the buyer, the seller, and a neutral party. This neutral party approaches a Challenged Seller, and offers to take over the payments of the mortgage by finding a Challenged Buyer to sign a purchase lease option contract. See benefits for both parties up above.

Contact one of our Lease Option consultants today to see if this program will meet with your needs.