Lease with option

[Russ_Boston]

I'm surprised that you don't see more lease with option to buy on resales in TV. It seems to make sense that many people who resell in TV are heading back to their northern family home. You would think that instead of letting a property sit unsold for months and months that they would try to sell with an option thereby at least getting monthly income plus an agreed upon sales price should the lessee convert the option.

I would think many sellers don't need the current influx of cash and would welcome the monthly income while still maintaining ownership of the house.

Personally I think there are many buyers like me who might consider something like this while our northern homes sit and we wait to put them on the market for sale. We could just rent but it would be nice to find a home that we'd like to live and in and give it a try-out before committing.

Russ

[Donna]

Russ...Not quite sure how that works..Fill me in..

[Russ_Boston]

A very simple example (someone please fill in the details or correct if needed):

Let's say that I agree to pay 275K for a 1900 sq. ft. interior lot home on a villa wall in Virginia Trace (real home by the way). If the seller were willing to have a long term rental on the property (not a lease/buy option) she might be looking to get 2k per month for the rental and who knows if they would find a long-term renter.

But instead she may use a lease/buy option whereby I might be willing to pay the 2K per month with $750 of it being used to buy down the 275K price. After 1 year we like the house and want to convert the option. The house would be ours for 275K-9k ($750 X 12 months) = $266K left. Or I could pick up the option for another year at a specified price (probably still $2K per month) and then convert my option then. In reality the option can be converted usually at any point.

If i don't buy at least the seller has the house fully rented for the year.

Obviously this doesn't work if the seller just wants the property off their hands since it may come back to them.

Works something like that. I did one with my first house way back in 1980. I'm not sure if they have some legal issues that make them undesirable now.

[Russ_Boston]

Hey admin - how come you moved the thread? Isn't this forum for new members with less than 10 posts? I've got a few more than that;)

[tucson]

This is what I did in June, had a contract in 6wks. I also don't know why more people here or elsewhere don't do a lease/option:shrug:

[Russ_Boston]

Tuscon - you were the seller?

How's the expense been so far? Were you able to get more $ per month than you would have if you rented it?

[tucson]

Yes, I'm the seller and I didn't care about making a big profit on the rent, so I charge a very reasonable rent without utilities. I just make sure my end of the costs are covered.

[l2ridehd]

One reason it is not done in the Villages to often is the home is furnished. With a lease option to buy most folks want it unfurnished as they have somewhat decided on the home. I have a home I was selling, but decided to rent it out instead. Had to furnish it completely in order to do that. I think most sellers would consider that type solution if it was presented to them.

But Russ if that is the way you want to buy, lets talk. I do intend to place mine back on the market at some point. And really could make that work most anytime if the deal was right for both parties.

[tucson]

I had a buyer who wanted my house furnished as some ppl are unable to move here right now and want a furnished rental to come to when they want. There's always ppl who need a furnished house, plus if it's nearly new as mine was it makes more sense than paying to move yours down from the north which is very expensive.

[Russ_Boston]

Good point Tuscon - especially if someone is doing the rental/option thing as a trial of the home and/or the Villages. They probably still have a home up 'north'.