Hello, I have to admit my business partner Russ and I are in a little bit of a pinch. We could use your
help because we have tenant buyers who are in need of houses. The truth is...we have several
thousand tenant buyers who need a home. We are real estate investors and we advertise to find
people who want to lease option our houses. Our marketing worked extremely well, and we found
more tenant buyers than we had houses to sell. We want to find a way to help these tenant buyers
find a home, make a little money on all the work we have already done and to qualify them. So...we
set up this web page to find landlords like you in the area.
About Our Tenant Buyers
Our buyers want to live in the area, but don't qualify for a mortgage at this time. That means that
they would be buying your property from you as "Rent to Own". They can afford the monthly
payment and will qualify within 1-2 yrs. We will have each one talk to a mortgage broker before we
put them on the list. We want to know exactly how long it would take them before they qualify, take
out a new loan and pay off the home. These buyers will also give you full market value for your
home along with full market rent during the lease period...this is sometimes a little bit more than that.
Our Tenant Buyers Are Safer
Our tenant buyers are not only safer but they also tend to take better care of the property compared to
normal tenants because they see it as their property. You will also have a written agreement with
them that makes them liable for repairs to the home. For example, if the furnace breaks down or the
toilet blocks up, they will not call you in the middle of the night. It saves a lot of headaches for the
landlord. And...if the worst by chance happens and they default, they lose their option and you can
evict them. The beautiful thing is that the percentage of evictions on this type of sale is way below
normal compared to normal tenant eviction rates...making it a lot safer.
This Is All 100% Free to You
All of this doesn't cost you a dime. It's 100% free to you because we are paid by the tenant buyer. In
regards to price...that is up to you. It does not matter to us how much you would like for the property,
but as a hint of caution, if we put it much over the market value, we will have a very hard time
finding a buyer. There is not reason why we shouldn't be able to get your full market value though or
even a little bit more due to the way we are selling it. Our tenant buyers are every motivated.
Let's talk today
If you like what I have said so far and are interested in talking, please let me know. We can schedule
an appointment to talk over the phone to answer any and all of your questions. As soon as you give us
the "okay", we'll send out an email to our tenant buyers list about your home. By the way, don't be
surprised if things happen fairly quick after you give us the okay.
Let me know what you think.
We can either draft a Letter of Intent that will describe our full priced offer to you in detail, or...you
can CLICK HERE to simply fill out our one page Lease Option Memo right now and we will get
started immediately, especially since you have nothing to lose, nothing to risk and everything to
gain.Whatever you decide is okay with us. We wish you the very best of all good things.
Best Wishes,
Daniel Bitz
P.s. I want you to know that there is never a cost to sell your home through our program. It is 100%
free to you, the home owner, this is again because our tenant buyers pay our fees. We act solely as
Principles in each transaction, meaning we only represent ourselves. We are not realtors, attorneys
nor accountants.
Here Are Some "F.A.Q's" {Frequently Asked Questions}
What sort of down payments do most people have?
It varies per property and the property asking price, but we usually try to collect as much as we can
as a lease-Option fee.This is where we make our money so our goal is to get a much as possible.
Also, the more we get as a down payment, the more stable the tenant-buyer is for you, so it benefits
us both.
What is the number of people who walk away from the house when the lease is over (either
because they are unable to get regular financing or decide the no longer want the home?)
Less than 30% of lease-Option buyers will exercise the option. So it is likely that they will not buy it
at the end. But there are some real benefits -
1. It doesn't cost you a dime to fill the property. That is what we do and we are paid by the tenant-
buyer.
2. You no longer have to lose your mortgage or property tax payment every month since you will
offset it with the monthly income.
3. You don't have to do maintenance on the property - the new tenant-buyer is responsible for repairs
up to $5,000.
4. You don't pay for utilities.
5. They cut their own grass and shovel their own snow.
6. They don't call you like regular tenants.
7. You get a 3 year lease rather than 1 year for most tenant-buyers.
8. You get a more stable tenant-buyer than a regular renter because the folks that move in see
themselves as owners rather than renters. Remember the old adage, "You don't wash a rental car."
Same goes for buyers vs. tenants of houses.
If the person walks away from the lease what becomes of their down payment?
It is non-refundable to the tenant-buyer. When they end their lease, we would be happy to help you
fill the property again - we have a very active and growing list of buyers.
Who is responsible for upkeep and maintenance on the home?
This is all the responsibility of the tenant-buyers.
Since the home has a mortgage are there any problems with leasing that would cause the "Due on sale" clause of the mortgage to be invoked by the lender?
No, a lender would see this as a lease, not a transfer of ownership.
Because it's a lease, does the person leasing the home get the homestead exemption or would it be
treated like a rental property, and if so, at what point would the taxes would go up without that
exemption.
It would be treated like a rental property so eventually the exemptions would be removed and the
taxes would go up.
But - you also get the benefits of owning rental property.
You will get several financial benefits from keeping your
property and selling it as a Lease-Option:
1. Depreciation on the property. This is a good thing. You can deduct 3.64% of the tax basis (27.5
years depreciation) of the improvement of the property against either active or passive income
(depending on how you are set up). On a $100k property, this would equal about $1k in real cash
savings on your taxes each year. (talk to your CPA for details about how this works).
2. Appreciation of the property. Over time, the value of the property goes up. We know it's been a
rough patch in the market these last few years, but the likelihood is that the values will eventually go
back up. This will make it possible for you to sell the property in the future and make a profit rather
than have the potential (in many cases) of actually having to come to closing with cash to sell it.
3. Buy down of the mortgage over time. Over time, the note will pay itself off. You may have years
before this happens, but every month a little bit of your payment goes toward the principle and you
will build equity.
4. Rents go up over time as a hedge against inflation. The thing we love best about our investment
property is that the rents go up. We know of no other investment that has an automatic hedge against
inflation like this. Most houses have 30 year fixed payments, but as rents go up, if you apply the
extra income to the mortgage each month, you will likely pay it off in 10-15 years because of the
increased cash flow.
There are also some negatives to consider:
1. Risk of vacancy. Over time, you will have vacancies. Each month the property is vacant, you lose
money. The beauty of working with us is that we have lots of tenant-buyers and can fill it very
quickly. The risk of selling it on the open market is often much higher than selling it through us with
a Lease-Option. Keeping it on the open market, you must pay the mortgage, utilities, taxes,
insurance, grass cutting, maintenance and wear and tear that comes from keeping a property vacant
(did you know that the plumbing will often deteriorate in a vacant house because of lack of use?).
2. Risk of damage from tenants. There is always going to be wear and tear on a house when someone
lives in it. When they move out, you will need to have it cleaned up before you sell it again. It's also
possible that someone will deliberately 'trash' your house. This is very rare and is covered by
insurance.
3. Management headaches. We hate managing property and make a point NEVER to talk to any of
my tenants. The biggest reason people say they hate real estate investing is because they manage
their own property. This, in our opinion just doesn't make sense. Let our tenant-buyer be responsible
for the repairs - the first $5,000, in fact.
4. Picking a bad buyer/tenant. This is another mistake most newbie investors make - they screw up
on tenant-buyer selection. That is why we put them through a qualification process that vastly
improves the tenant/buyer's success rate.
The downside is that taking on tenant buyers, in my opinion, is much smaller than the upside -
especially if the alternative is a vacant house. We know that in a good market, 33% of all properties
listed for sale on the MLS do NOT sell. Right now, that percentage is much higher. We also know
they will not sell for more than market value and that the cost to sell with a Realtor will run you
about 10% after commissions, closing costs, repairs, and negotiation. For many people who are close
to market value on their mortgage, this cost just isn't possible.
How do buyers get financing when it's time to exercise their Option?
They go to any conventional lender and apply for a loan. The reason they are buying "Rent To Buy"
right now is because they do not qualify for a conventional loan. Since 2007, conventional loans
have become much harder to qualify for - ask any mortgage broker. That is why so many properties
that are for sale by real estate brokers don't sell. Buyers just can't get loans without almost perfect
credit. Appraisals have also been a problem recently, so even if the Buyer qualifies, if the appraisal
doesn't come in, they won't be able to finance it.
Our goal is to help good, responsible people get into a home. People who will take care of it and treat
it like their own. We've had good luck finding just that over the years.
If the tenant-buyer exercises the Option, that's great and you make your money. If they don't, the
advantages of having someone pay your mortgage and buy a house for you are enormous.
We believe that selling the property as a lease-Option is the solution that is the least painful. In fact,
it may end up being the best financial decision you ever make.
I hope these answers give you a better idea of how this all works and helps you decide if it is for you
or not. Feel free to call us if you have additional questions. If you are ready to go, just fill out the
form RIGHT HERE , and we'll get started immediately. We'll blast out the details of your property
to our tenant-buyer-list and get it transferred to one of our tenant-buyers as soon as possible.
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