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Updated about 6 years ago on . Most recent reply

User Stats

19
Posts
10
Votes
Eduardo Rodriguez
  • New Braunfels, TX
10
Votes |
19
Posts

Lease with option what is the benefit?

Eduardo Rodriguez
  • New Braunfels, TX
Posted

Hello BP community, I have a property listed and had an interested party approach me with can I rent to own?, can I do a lease with an option? etc, honestly, I was unprepared to answer this since I had not considered this strategy and since have become curious I would love some feedback regarding this practice, my understanding is as follows:

  • Option to purchase on a lease is typically 1% of the value (non-refundable, but credited to down payment if the purchase goes through)
  • rent is increased by 10% for forced savings (non-refundable, but the amount in excess credited to down payment if the purchase goes through)

  would greatly appreciate direction and resources to aid in making this transaction a success, my questions start at:

  1. should I pay for an appraisal now and add X% to that for the future purchase time frame I.E. 250K Appraised + 3% for every 12 of the lease term or
  2. should the price be set at the time of purchase (who pays for the appraisal)
  3. I have an agent listing this now, how would the agent make his commision on a scenario like this (the agent did not participate in putting this deal together) Should the agent be involved?

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