Question: What is Lease Option or Rent To Own?
Answer: A lease option or Rent To Own is essentially a purchase contract combined with a rental agreement. The
buyer leases the property for a specified period of time and then has the option of
purchasing the property before the end of the lease agreement. Sales price, length of
rental, closing costs, and maintenance are all negotiated much the same as a
conventional real estate transaction. A lease option, if properly utilized, is both a seller
and a buyer’s dream come true because it can eliminate many of the negatives normally
attributed to the selling and buying of a home.
Question: How does it work?
Answer: We present a monthly lease amount as well as a pre-determined sales price that is
agreed to by all parties. A lease option/purchase is basically a monthly lease set up
over a pre-determined period of time. At the end of that time, the tenant purchases the
home from you for whatever the pre-determined price is.
The basics are simple:
● You rent your property to The Aida Group
● You give The Aida Group, the right to buy your property for a set price.
● The Aida Group places a tenant/buyer in your property.
● The tenant/buyer receives the right to buy your property at or above your agreed price.
Question: How much is this going to cost me?
Answer: The answer is simple. It doesn’t cost you anything. We make our money from our
tenant/buyers, not from you. If you decide to do a lease option with us, you do not have
to pay us a commission.
What are the advantages of selling my home by lease option over listing it with a
Realtor?
Your monthly payments are taken care of while a tenant/buyer is qualifying for a loan. All
your expenses related to the house are taken care of.
Another advantage is that our objective is to put only high-quality tenant/buyers in the
house since we make our profit by selling for higher than we buy. Since we guarantee all
minor maintenance on the house, it is in our best interest to ensure that our tenant/buyer
will take care of the home and eventually secure financing to cash you, the seller out.
This means that we put our tenant/buyers through an intensive pre-screening process
before they are even permitted to look at the house.
We don’t work for commissions. And, because our profits are made by selling for slightly
higher than what we buy for, we have a vested interest in the house and in making sure
it gets sold.
Question: How long does it take before your tenant/buyer cashes me out?
Answer: That can depend on a number of different factors. We work with many mortgage brokers
that are usually able to get most people financed after they have paid for 12 months on
the lease option. Since everyone’s credit history and circumstances vary, that time
period can be shorter or longer for the tenant/buyer that we eventually put into the home.
Because of this, we cannot guarantee the exact time our tenant/buyer will secure
financing. However, until our tenant/buyer qualifies for financing, they continue to take
care of your home and the payments continue. It is also in our best interest to get our
tenant/buyer a new loan as soon as possible, We aggressively work to get our
tenant/buyer financed as soon as possible.
Question: Why don’t I just sell my house myself or rent it in the meantime?
Answer: These are always options available to you. The difference would be that you are
responsible for your monthly payments, maintenance, and repairs during the selling
period. You need to try to find someone who can actually qualify for financing, wait for
them to get approved, and hope that they don’t pull out of the deal, making you start the
whole process over again. Renting during this period opens entirely new difficulties that
would-be landlords often overlook, especially when you are trying to show the home and
sell while renters are living there.
Question: Why don’t I just find my own tenant/buyer?
Answer: If you have the expertise to screen potential tenant/buyers, check references, know what
sort of credit scores will allow someone to be able to be financed, deal with maintaining
your home while someone else lives in it, work with mortgage brokers to get them
financed, and finally, process all the paperwork and set up a closing, then finding a
tenant/buyer on your own would be a viable option for you. If you lack the expertise in
any of these areas, we are able to help.
Question: What if your tenant/buyer doesn’t buy the house?
Answer: Our tenant/buyers are carefully pre-screened to ensure that they want to buy the house
and are able to do so at some point in the future. However, circumstances can change in
someone’s life, such as an unexpected job transfer that can make it necessary to move.
In situations like that, we continue to pay all the expenses for the house while we find
another qualified tenant/buyer to put into the home.
Question: How do you eliminate my maintenance and repair problems?
Answer: The tenant/buyer will be required, by the terms of his or her lease, to perform all regular
maintenance and repairs.
What do I have to do?
For the most part, as the homeowner, you don’t have to do anything. We take care of all
the paperwork as well as the placement of tenants. And because you don’t have to
worry about the day to day repairs, the only thing you need to decide is where you want
your monthly checks sent. It is really quite simple.
What if a tenant tears up my house?
There’s no way that I can guarantee you that a tenant won’t damage your house since
you or I won’t be living with them. But under the agreement that I will have with you, My
objective is not to find a “tenant” – my objective is to find a Buyer who will eventually own
your house. I investigate them thoroughly before entering into an agreement with them.
Damages are rarely a problem. In fact, in most instances, we have found that our buyers
many times have improved a house with new carpet or some other upgrades, such as
fencing.
Question: Who handles the paperwork? Do I have to pay for that?
Answer: Our attorney handles all of the necessary documents to make the transaction happen.
And the best part is that you don’t need your Ph.D. to be able to read them. Of course,
you are always welcome to have these items reviewed by your real estate agent or
lawyer at any time during the course of the transaction. We want you to be 100%
comfortable with everything before moving forward.