Executive Lease Purchase Benefits

  • Nets the sellers significantly more dollars, maximizing the value and profitability of the sale
  • Seller gets asking price or close to it as buyers are motivated
  • Exit strategy in place from day one
  • Buyers monthly payments contain no credit towards the purchase
  • No landlord responsibilities
  • No monthly rent collection problems
  • A short time investment into the home yields a maximum return on their investment
  • Sellers retain title the entire time; they never relinquish control or lose the driver’s seat
  • Sellers have full approval on any buyer we would like to work with
  • Full Due-Diligence package on every buyer; fully vetted
  • Seller gains access to a “hidden market” of motivated buyers
  • Timeline based solely on the buyer’s time frame for financing; shortest term possible is always what we shoot for
  • No real estate commissions
  • Positive monthly cash flow

How It Works 

An Executive Lease Purchase is a simple agreement where the buyer makes monthly payments to the sellers towards the purchase of their home, for a specified period of time, and at a specified price.

At the end of the Lease Purchase term, the buyer finances with a traditional mortgage and the sellers get paid off.

It’s a structured purchase agreement from day one, with payments and price predetermined, and in many cases for a short period of time (many of our deals finance within 12 months or less).

It begins by being qualified like a traditional borrower, with the full understanding that in most cases the buyer will not qualify for traditional financing today.

Barring a recent bankruptcy, foreclosure or short sale, most people with credit challenges can get their credit cleaned up and can become mortgage ready within 24 months.

All buyers are run through a thorough due diligence period, which is a huge component of our system.

Credit is pulled, job history, pay stubs and income are all verified, debt-to-income ratio is calculated and tax returns, etc. are used to determine the time qualification time frame.  It is at that point that the Lease Purchase time frame is determined.

An offer is then submitted to the sellers.  The sellers have the right to accept or reject any offer.

Each offer consists of a meaningful deposit to avoid “tire kickers”.

If the sellers accept the offer, the buyer submits a down payment of 5- 10%,  and moves into the property.  The buyer makes timely monthly payments which are auto-deducted  to the seller and  is responsible for maintenance of the property.

At the end of the Lease Purchase period, the sellers are paid off when the buyer obtains a traditional bank loan.  The final closing process is conducted with an escrow company and title is transfered.