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Lease Option

Looking for Deep Water Front property in Discovery Bay either to rent or a lease option.  Anyway to sort for the lease option amongst all the homes out there? 
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April 14 2011 - Discovery Bay
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Just a quick thought on the lending side of this issue.... I see a frequent misunderstanding when it pertains to how some of the rent payments may be credited towards the down payment. Lease Options don't always have this and it might even be are rare occurence. Nonetheless, consumers get pretty darn excited with the idea that the rent payments maybe be counted towards their down payment if the purchase the property. NOT!!

I had a nice lady call me this week regarding her Lease Option. She kept telling me that she had a $150,000 down payment which was already give to the Seller! I was "scratching my head" trying to understand why she had already "given" the Seller $150,000. Ha... She had paid $2,500/mo for the past 5 years and now she was looking for a loan.

In the "old days", Fannie/Freddie allowed this but only the amount of rent that is proven to be "above market". Not sure how one would document this over a 5 year period. Also, I'm not ever sure if Fannie/Freddie allow it now.... no wonder why she kept saying that everyone was suggesting a "hard money" lender. OUCH!..

So, my point. Don't let a Seller give you the idea that the rent payments might be credited towards your down payment. Be careful.

Why not just utilize a 3.5% down FHA loan. Better than the lease option idea. The comments from the agents are all very good. There are many potential "snags" with this idea. .....

I hope this helps! 
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April 15 2011
I do have a deep water to rent also available June 1
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April 27 2011
Lease option has a small percentage of deals, it has to be a win,win for buyer and seller. With so many homes that are REO and short sales hard to find the right combination to fit. There are lots of opportunity let me know how I can help further. Thanks June
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April 27 2011
I recently blogged on Rent-to-Own, Rent to Buy, and Lease Options at 

   Lease Option Homes

My research was done in the towns The Francis Home Team specializes in: Apex, Cary, Holly Springs, Fuquay Varina & Raleigh North Carolina.  But the points raised are universal.

Hope this helps and Happy House Hunting!
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April 15 2011
lease option is almost always a terrible idea. What if the seller quits paying the mortgage? The market price goes down? your credit never improves?

It has been asked at least 100 times on zillow, with detailed descriptions of why it is a bad idea, use the search bar above, find them and read them. Ignore the "every type of sale is a good sale" poor advice coming on here...
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April 14 2011
Lease option are usually refer to as lease purchase by real estate agent. I am sure one of your experience real estate agent can find you the lease purchase or lease option. There is not a lot of these on the MLS, and if you are looking in a specific areas, than you need an agent who know how to find and negotiate these kind of deals. If it is a beach water front properties, with a high rental rate and high sale price, there might be enough motivation for an experience agent to find you a lease option or lease purchase property. Make a lot of offers to land lord or motivated seller. 
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April 14 2011
Many realtors and thier clients dont advertise lease options becasue they are unfamiliar with the concep. However, a good buyers agent will be able to write that proposal up and present its benifits to an ower so that it will shed  light as to why it is a vialble way to go in this market. All offers should be presented to an owner. The worse thing that can happen is that a seller says" no thank you". 
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April 14 2011
 
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