Sellers – Frequently Asked Questions

Maybe you have a few questions. That’s okay; most people do. Here is a quick collection of some of the questions people ask us, along with our answers. If you still have a question, don’t hesitate to contact us anytime. We would be happy to answer it for you.

• What is a Lease Purchase?
  • A lease purchase is a lease agreement that includes an option for the tenant to buy the property. The tenant/buyer makes monthly payments directly to the seller and obtains permanent financing within 12 months. This arrangement can cover your mortgage payments while potentially generating additional monthly cash flow for other expenses!
• How do I get my asking price?
  • With this arrangement, you offer the tenant/buyer a predetermined price (called the Option Price) for a future purchase. Since buyers typically care more about favorable terms than the exact price, they’re often willing to pay a premium. There’s no need for price negotiations—the tenant/buyer accepts the stated price upfront.
• How much am I (the seller) going to be charged?
  • Nothing at all! The lease purchase folks (us) who use our system are paid directly by the tenant/buyer through an assignment fee. When we assign the Lease Option to the tenant/buyer, the tenant/buyer pays this fee to the lease purchase company. There are no costs to you whatsoever!
• I’m concerned about having “tenants” in my house. Will they damage it?
  • Tenant/buyers in a Lease Purchase are different from regular tenants because they’re investing in their future home. Since they pay non-refundable money each month toward purchasing the house, they treat the property with exceptional care. In fact, many tenant/buyers make improvements and upgrades to the property. Think of it like the difference between renting and leasing a luxury car. When you rent a car for a short time, you might not worry too much about minor scratches. But when you’ve invested thousands in non-refundable payments toward a lease-to-own luxury vehicle, you’ll treat it with the utmost care—just as tenant/buyers do with their future home.
• How is the marketing done for tenant/buyers?
  • We continuously market to potential tenant/buyers through multiple private and public channels. This includes various real estate websites, yard signs, directional signs, and social media platforms like Facebook.
• Why shouldn’t I use a Realtor?
  • We actually recommend using a Realtor while offering your home as a lease purchase. This keeps your house exposed to a broader pool of potential buyers who may not need a lease purchase. However, the MLS is not where people typically begin their search for lease purchase properties. While Realtors typically charge 3-6% commission for selling your house, a lease purchase costs you nothing. Our Marketing Affiliates work with select Realtors to help you, and they’ll refer you to a Realtor if they determine that our program isn’t the best fit for your situation.
• What about the maintenance?
  • The tenant/buyer is responsible for most maintenance. We always recommend a home warranty for the tenant/buyer to cover repairs. You, as the homeowner, are only responsible for major structural repairs and roof issues, which are typically covered by your homeowner’s insurance.
• How soon can tenant/buyers normally get a mortgage?
  • While each case is different, most tenant/buyers who come to us can qualify within 10-12 months. Some may have old blemishes on their credit that need to be resolved or removed. For those with credit discrepancies, we require them to start working with our partner lenders before moving in. This ensures the process is already underway and shortens the time needed to qualify for a mortgage.
    • It’s worth noting that about 60% of our tenant/buyers have excellent credit and strong finances—they’re simply self-employed business owners who need time to organize their documentation with their CPA to secure financing.
• I’m concerned about having renters. Will they be responsible?
  • Our tenant/buyers are different from typical renters. These are responsible people with stable jobs who may have experienced temporary setbacks affecting their mortgage qualification. Many of them have already been leasing homes in nice neighborhoods, with their families settled in local schools and communities. They’re simply ready to transition from renting to homeownership and need a brief period to get there.
• What if the tenant/buyer decides not to buy?
  • While it’s always a possibility, it’s extremely rare for a tenant-buyer to walk away from the purchase. Tenant-buyers have skin in the game. They’ve made a non-refundable option payment (often thousands of dollars), which they only benefit from if they complete the purchase. Emotionally, they’ve already started seeing the home as theirs — making it far more likely they’ll close.
  • We have found that there are three main cases where buyers back out:
    1. Job loss
    2. Divorce
    3. Death in the family
  • We structure every deal to encourage success — from upfront commitment and monthly rent credits to early connections with mortgage pros. Everything is designed to help them close.
  • If they walk away, the home is still your and we can try again at no cost to you. You got all the benefits of being a landlord without being a landlord. You got a perfect tenant who treat the home with respect, made a profit, none of the headache of finding and screening tenants.

Buyers – Frequently Asked Questions

• What does rent to own actually mean?
  • In most cases it’s a lease agreement that gives you the option to buy the home later. You’ll pay monthly rent like any tenant, but part of your payments may count toward the purchase. This gives you time — usually 12–36 months — to save, build credit, and get ready for a mortgage.
• What is the rent-to-own process?
  • It’s simpler than most people expect:
    • Find a home you love from our list (or tell us about one you’re already renting).
    • Fill out a quick application — we work with all types of credit.
    • Once approved, sign the lease/option agreement, pay your option fee and move in!
    • Work with our partner lenders to get mortgage-ready before the option expires.
    • When ready, buy the home — often with credits from your monthly rent or option fee to help with closing costs.
• Do appliances or furniture come with a rent-to-own home?
  • Most homes come with standard appliances: stove, fridge, oven, and often a dishwasher or washer/dryer. Furniture usually isn’t included, so you can bring your own and make it truly yours.
• What if I have bad Credit? Can I still get a rent-to-own home?
  • Yes! Rent-to-own is designed especially for people who need time to repair or build credit. We work with partner credit experts and lenders to help you get mortgage-ready, even if your credit isn’t perfect today.
• What are the benefits of a rent-to-own home?
  • Lock in a purchase price while you prepare to buy
  • Live in your future home right away
  • Build equity before you even own
  • Time to save for down payment and repair credit
  • Move in fast without waiting for mortgage approval
  • Enjoy the pride of ownership while you work toward it
• What are the requirements of a rent-to-own arrangement?
  • We do check that you can comfortably afford the monthly rent. We’ll also:
    • Review your credit (don’t worry if it isn’t perfect)
    • Verify income for household members over 18
    • Check references and rental history
    • We focus on your real situation, not just a credit score — because people aren’t numbers.