Frequently Asked Questions

Maybe you have a few questions. That’s okay; most people do. So here’s 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 (or give us a call) and we’ll be happy to answer it for you.

Q: Why do you buy using this method (lease purchase/rent to own or owner financing)?

Because if we paid you market value for your home and did so cash, we’d be out of business.  The only way to get you to your number is this way. If OF (owner financing) we can pay you premium if you don’t need the cash now.  The owner financing with principle only payments is perfect for your situation as you’ll get the most MONEY.

Q: What is a lease/ purchase?

You simply lease it to us with a set date on or before that we purchase it. It’s nothing more than a delayed cash sale. Right now, there are only approximately 18% of the market that can walk into a bank and get a loan today. We work with the other 82% that require our help to get their credit improved or some just need seasoning as self-employed business owners. Either way, they’re very serious buyers that have to put up a non-refundable deposit with our attorneys and have to stay in our program so that they can get you/us cashed out. We take over all responsibility repairs after the 1st 30 days and pass those along to our buyer.

Q: What is owner financing?

Well that simply means you sell to us with terms and we make monthly payments until we refinance or the term ends. We typically do a minimum of 48 months on those types of transactions. You’ll have a recorded note and mortgage on the property.

Q: What if the buyer cannot get financing?

Well, great questions- we don’t set our buyers up for failure. We only set them up to succeed and we do that by pre-screening them for credit, criminal and sexual harassment to make sure they’re a fit. Most importantly, from that prescreening we know how soon they can be mortgage ready and we structure the term to meet those dates. Let’s say that a life event happens (1%-3% of the time) and they have to leave (divorce, death, job relocation, etc.) worst case is you keep their deposit and you do it again or call me to handle or sell on the open market because you’re ahead of the game at that point.

Q: What if my home gets trashed?

You’re describing a renter. We don’t rent our properties. Again, we require a down payment that ranges from 3%-10% and with that kind of financial commitment we do not get people beating up the home. They treat it as their own- these are buyers that move in and do everything they would do if they owned except their loan is not in place yet.

Q: My friend, who is a Realtor, will have to advise…

Realtors do not offer these services and most of the time do not understand how it’s done.

We would suggest talking to a Real Estate Attorney, who is familiar with creative real estate transactions, not a family attorney. All our closings occur with an attorney and you don’t have to pay for that – we pass that along to our buyer. You could call our attorney who is very familiar with this process as we do 3-6 of these monthly.

Q: Why should I tie up my property instead of selling right now?

I only buy on terms so I can find buyers who can qualify for cash out given a little time and work. My chances of locating this kind of buyer are many times greater than you or your agent finding a cash buyer in this market. Keep in mind that you’ll get full value and you wont have a commission to pay as I typically raise the price enough to cover my assignment fee (if assigning back). I usually only need 5-90 days and you house will get all my focus and substantial marketing budget and that’s assuming someone on my current buyers’ list doesn’t take it. Sometimes that happens in the first few days.

Q: I don’t want to be a landlord and have to evict or foreclose

Totally understand. That’s why we perform the most thorough check on our buyers possible before even presenting them to you (this is if assigning) and require a substantial down payment. We’ll review the entire package with me. (If you’re staying in as a sandwich lease) That’s exactly why we stay in the middle. You don’t have to worry about any of that. You’re leasing to us and we guarantee a cash out on or before the end of the term. All issues with the buyer we handle.

Q: If I’m not paying you, why do you do this and how do you get paid?

We get paid a few different ways but typically (1) we raise the price enough to cover our fee, (2) (if staying in the middle via sandwich lease) we create a monthly spread on the difference between what you need and what we charge the buyer and (3) sometimes more when they cash out. If there’s no monthly spread or additional profit potential for me, I’ll simply exit early and assign back to you once we both approve the buyer. Let’s see what the market brings before we decide.

Q: What do you mean when you say, “stay in the middle”?

What I mean is I’m definitely not going to live in it so I purchase from you or lease purchase and then resell or sublease to my buyer that I know can get this cashed out within an acceptable time frame. This way, I remain as the principal and you collect from me, not my buyer. It also means that all issues that come up are my issues…not yours and I’ll be working with buyer to get it all cashed out. Alternatively, if you will sell for nothing down or little down I can close quickly and pay all your closing costs.

Q: Why don’t’ you just buy it?

Well I can but we pay cash on properties that need more work and is more in the rehab category. Yours is move in ready and doesn’t qualify for that because for those we only pay 65%-70% of retail for at best.

If you’ll sell with terms, I’ll pay your closing costs that are usually several thousand dollars and I can close whenever you want. Would you like to discuss that route in more detail?

Q: So you’re a realtor?

No. That’s exactly why I need these forms signed up front to buy the home so I can then legally solicit buyers. Keep in mind that also means that you pay no commission and you house gets all my attention.

Q: I need a cash out to buy another home…

Well, if you definitely need the cash out NOW to move to another property, there’s only one solution with us and you can use it as a back up if you don’t sell on your own (or with your agent). That would be for you to go ahead and refinance the home and then structure the terms of a lease/purchase with us to cover that new loan.

Q: I don’t want to sell to an investor, I’m sure you need to make a profit? Or…You’re probably one of those flippers and this won’t fit for you!

Actually, we typically can pay you top dollar for the home provided you’d be open to doing that on a lease purchase or some kind of terms.

Q: My house is now listed with a realtor!

Oh, okay- in that case I cannot do anything yet with you as I don’t’ want to step on toes, but if you don’t get the price you want in the time frame you want…or if you end up cancelling on your realtor, then just give me a call and I can get it done for you fairly quickly and you’ll save the commission and sometimes even cover your closing costs.

Q: Seller just generally says NO TO TERMS

Okay so if it doesn’t sell you’ll just hang onto it? So you’re saying if I brought you a buyer with a down payment that can cash you out at full price within a year or two, you’d rather not?

Q: What kind of guarantee will I get that you’ll cash this home out?

Lease Purchase

Well, we buy several homes per month and have been in business for 25+ years with an A Better Business Bureau rating. In addition to that, you can see all the other sellers on our site and what they had to say about successful deals with us. Of course I’ll have no reason to go to agreement with you if I didn’t intend to honor our agreement. I don’t get paid unless you do. If this is something that keeps you up at night, maybe its not a good option for you.

Owner Financing

Well, we buy several homes per month and have been in business for over 25+ years with an A Better Business Bureau rating, in addition to that, you can see all the other sellers on our site and what they had to say about successful deals with us. Of course I’ll have no reason to buy your home if I didn’t intend to honor our agreement. I don’t get paid unless you do and its highly likely you’ll get cashed out before the term ends. Keep in mind that you have the security of a first mortgage during this transaction.

If this is something that keeps you up all night, maybe its not a good option for you and we can explore a lease/purchase whereby you don’t give up ownership until cashed out.

AO- Assigning out the deal-back to the seller

If together we approve the family to move in, you’ll get their personal guarantee plus percentage of the down payment we agree on. If you don’t think they are capable of getting cashed out after reviewing their whole package, their credit screening file, etc. I assume together we wont accept them. I don’t bring you buyers that I don’t think will get us to the finish line.

I would need a big down payment if I’m transferring title (Owner Financing)

It’s possible that we can get a good size down payment and it’s my main objective because it’s how I get paid- from the difference from what I collect and what I have to pay you. Sometimes in this process it’s possible for us to find a cash buyer. If necessary we can even switch to a lease purchase where you don’t have to transfer title, but usually buyers will put up more of a down payment with a purchase versus a lease purchase.

As I explained, I usually raise the price high enough to cover my compensation anyway so you’ll get full price or close to full price and no commission!

Q: How long a term are we talking here? (Lease Purchase, AO and Owner Financing)

Well, we have to work that out together and it sometimes changes based on the buyer’s needs if we accept them based on what the prescreening tells us. We like to see 36-60 months but let’s work that out once we know which option we’re going with (with AO use “once we get some applicants and accept a buyer).

Regardless of how we structure a purchase, it’s nothing more than a delayed cash sale.  We can get you cashed out -it just won’t be immediately.  If you NEED the cash now and you want retail price, we’re not your buyer.

We can, however, pay top market price if you don’t NEED the money right now.

We focus on working with quality buyers for nice homes in all price ranges from $100,000 to $1.5mil typically.  They’re quality buyers that need time to qualify for a loan due to being self employed (no longer can a self employed individual get a “stated income loan” -those were gone after the 2008 real estate debacle) so they need 24 months.  Another category is someone needing or wanting to enhance their credit – that’s also just a matter of time and some of those are as short as 9-18 and as long as 36 months but we can control that.

The good news is that there’s no commission because we’re not realtors and it’s not uncommon for us to find a cash buyer while we’re looking to fill the home on terms.  I can tell you (as you’ll see in the explanation document we sent/will send) that your chances of selling on terms is 10x better than conventional.

All we really need to test the waters is an acceptable terms agreement with you with a 90-day window to see what the market will bring.  We’ll do an extensive campaign in addition to offering it to our private list.  We may buy it right away or guarantee a cash out if we get the right terms.

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