how do you do a lease to own I have a house I am trying to rent for $900 a month and It have brand new frig, washer an dryer. It was my house but I have to move to Californa. I was asking for $900 a month and $900 deposit. I have someone who wants to lease to own it. First off I dont know if I realy want to sell it but I cant get a renter. So I am thinking about it. What should I tell the person. Like I need a two thousand deposit and the selling price will be $100k and the rent each month will be $1000 and that will go the the purchase of the house at the end of they year if she does not buy I keep her rent and the $2000. Is that how it works?
Also if she does not make her payments is it harder to kick her out of the house because she is lease optioning it
Blake,
I am not an expert and I know the lease option expert/moderator I believe is wendy patton.
I would structure the deal where in one year you will make on market appreciation for your area 10K in one year that is 10 % that is very good.
Yes I would sell on a lease with an option for 100K in one year. Collect a non-refundable one time lease option payment of say 3-5K find out what the buyer can afford. If the potential leasee can provide a higher lease payment you can negotiate a lower price say 97K purchase. You would then setup a lease payment of 1K and you are right to apply say 100 dollars amonth as a non-refundable rental credit. Put the rental credit in a separate account so there is no chance of commingling of funds… If the leasee does not exercise the option you keep all the monies or you can extned the lease period if you feel the person will buy it and has paid on time.
I believe you will want to make a separate lease agreement so in case you needed to evict it would not be deemed a foreclosure… Just from what I seen structured in these type deals. You have some flexibilty in your setup if you have a interesed buyer and also the house most likely will be better taken care of no renters to create havoc for you…
