A lease to own is an exciting prospect for a tenant that is short on cash and unable to qualify for a mortgage. This gives the buyer time to prepare a down payment or improve their credit ratings for a mortgage before the purchase date. A purchase price for the property is usually agreed upon at the signing of the agreement. This is a huge advantage for the buyer who will avoid additional costs of appreciation of the property after a number of years of renting have passed. Lease to own can act as a trial period for the buyer. If the buyer is new in town or relocating, then a lease to own allows them to test this particular neighborhood as an investment opportunity. If the buyer is relocating and waiting to sell a property of his or her own to fund the purchase of a new one, then lease to own is the perfect option. It allows them the opportunity to get settled in at their future home until they are able to purchase it completely. If you lease to own, you do not have to come up with 20% of the purchase price before you move in. The issue of paying a pet fee when you rent is not a problem when you lease to own. There is not a pet fee as you are buying the home. You do not have to pay a security deposit.

The first $5,000 of the non refundable option fees will not count toward the purchase price. This is simply the fee to get into one of these amazing situations I provide for the community. It covers the paperwork for the attorney, marketing, repairs, my assistant, holding costs, etc etc. This non refundable option fee allows Smokies Square One, LLC to stay in business. ​

The house is listed for $185,000. The option fee is 10% or $18,500. $5000 of the option goes toward the business of Smokiessquareone, LLC. The rest of the option fee goes toward the final purchase of the house. $18,500-$5000 = $13,500. Therefore, $13,500 goes toward the final purchase price of the house. The monthly rent is $1385. The monthly rent does not count toward the final purchase price. You can chose to pay money above the $1385 to go toward the final purchase of the house. So if you wanted to pay $1485 per month, then $100 per month would go toward the final purchase price of the house. The option fee amount is negotiable. You could pay more money up front in order to negotiate a reduced monthly rental payment.

What if I have bad credit? No credit? Bankruptcy? Bad divorce? Student loans? That’s somewhat ok with me. I will work with tenant buyers who do not qualify for a mortgage at the time they move into the house but within 24 months, they can improve their credit, established a job history, wait out the bankruptcy or “fix” whatever issue that is holding them back from going to a regular mortgage broker and purchasing the property. What if I don’t have a job? Or I’m paid in cash? You need a job to qualify for one of my houses. You must make 3 x the amount of the monthly rent. In order to purchase a house, you much be able to provide some proof of income. Proof of income shows that you are qualified to purchase the house. What if I'm self employed? That's great!!! I love self starters and entrepreneurs! You will need to show proof of income, but not necessarily your tax return.

How much does it take to move in? The smallest Option Fee I will accept is $5000. The amount you pay above the $5000 will go toward the final purchase price. The amount of the option fee depends on the property. Does the Option Fee count towards the Purchase Price? The first $5,000 of the Option Fees will not count towards your Purchase Price. This is the fee required to take advantage of this amazing opportunity. It covers the paperwork from the attorneys, marketing, etc. After the first $5,000, I like to work in $5,000 increments. The more you put down, the less I need per month. So, if you put $20,000 down and I’m asking $1,500 per month, I could probably negotiate a smaller monthly payment. It will depend on the house. Usually, the more you put down in the beginning, the easier it is for me work out some sort of deal with you and the property. And yes, after the first $5,000, I start to give you credit off the purchase price for the other $5,000 chunks. The amount of the option fee seems expensive. Why do you charge so much to move in? The purchase of real estate is expensive. It takes money to buy a house. A traditional mortgage loan requires 20% down. I typically ask for 10% down. Also, to rent a house, tenants typically pay a deposit and first and last months rent. With me, you pay an option fee, but the majority of the option fee goes toward the final purchase price of the house. If you do not have the cash at this time for the option fee, purchasing a house may not be the best option for you at this time.

I am pre-qualified for a mortgage. Do I have to do the Lease Option program? This is good news! How much are you approved to buy? Are you working with an agent? Have you signed a Buyer’s Representation agreement with them? Do you like any of my houses? When can you close? In other words, YOU ARE AMAZING!!! I love working with ready, able and willing BUYERS! Let’s get you into this property ASAP! You have been moved to the front of the line. VIP status. Contact me so we can discuss this further.