Own a house in Cape Coral and want the most out of it?
Consider a Lease Option & Contract..
Cape Coral lease options are a great idea again. Florida Future Realty, Inc. has been receiving a high number of requests for purchasing homes in Cape Coral via lease options. We are in need of more inventory to fulfill the needs of these buyers in Cape Coral. Many of these buyers have unfortunately lost a home in the past few years to a short sale, foreclosure or deed in lieu. They are good people who want to purchase a home they can afford but banks aren’t lending them money, yet. They want a place to call home and are sick of moving every 6-12 months from homes that are also going into default! We need your help. If you have property in Cape Coral that is paid for and you’d like to receive income on this property we have a great plan for all. Lease options were very big several years ago and they are big again.
There are 3 parts to a lease with option to buy. The first part is the lease. The lease agreement is set up for anywhere from 1 to 3 years. There is first & last month’s rent included to get started. Rent rates on lease options are slightly higher than standard rental rates because the tenant/buyer will be receiving part of their monthly rent towards the purchase price.
There is also a contract for sale and purchase. This price will be based upon projected market value at the time the lease ends and the sale is to take place. The tenant/buyer will also put a non-refundable deposit down as well. This is generally 3-5% of the sales price but can always be negotiated to fit the needs of all parties involved. This amount will also be credited towards the buyer’s closing costs at the actual sale of the property. If the tenant/buyer fails to purchase the property then they deposit is completely forfeited to the owner of the property.
The third part is drafted by an attorney and is the actual option agreement between the parties.
Our lease option program guidelines:
For Owners of property in and around Cape Coral, Florida:
You must own the property free of any mortgages/liens or must owe less than 50% LTV
We will collect a non-refundable deposit for you. 50% of that deposit will go to you & the other 50% will go towards the full commission to be paid at closing of said property.
Here is an example of how a lease option would work:
You lease the property to a buyer/tenant for $1,200/month with an end purchase price of $100,000. The buyer puts down a $5,000 non-refundable deposit that will be used towards the purchase at the end of the term (usually 1-3 years).
Paid up front: $5,000 non-refundable deposit
First Month’s Rent: $1,200
Last Month’s Rent: $1,200
Total to move in: $7,400
Minus $2,500 to real estate brokerage
You will credit $100-200/month towards the end purchase price also. So say at the end of the 2 year term the buyer qualifies for a loan and purchases the house.
You will credit $200 per month for 24 months towards the purchase price ($4,800) and also credit the $5,000 deposit as well.
The house sells for the agreed upon $100,000 and the buyer has $9,800 to use for closing costs/prepaids/down payment.
You pay the real estate commission ($6,000-$2,500 already paid=$3,500) and sell the house for a net near $83,000 (after closing costs/other fees)
More benefits for of a lease option compared to a straight rental:
- Large non-refundable down payment
- Tenant who wants to buy – care more for property (less maintenance)
- No monthly management fee
- Monthly income for 1-3 years!
- Larger monthly income vs. rental
- Sales contract in writing
More benefits of a lease option compared with a straight sale:
- Higher sales price compared to current market/buyer
- Large buyer pool
- Defer capital gains taxes while renting
And finally benefits of a lease option compared with seller financing:
- Close in 1-3 years vs up to 30 years of holding a note
- Evict a tenant who defaults vs foreclosing on them
- Pay only part of the sales commission until property closes
We can also assist you in seller financing as well if you are interested.
At Florida Future Realty, Inc. we bring the consumer what they are asking for versus what we think they want. Lease Options are a win/win for all parties involved and will in turn return the city of Cape Coral back to the full beauty it should be. We need people in homes that they can comfortably afford and maintain. We do not need more vacant homes.
We also work with traditional sellers, short sale sellers & bank owned listings as well. In any real estate market it is critical to accommodate to the needs of the majority buyer.
We look forward to hearing from you….
Susan Milner
Florida Future Realty, Inc
(239) 542-8521
(239) 218-2229 Cell
Mail@SusanMilner.com
copyright Susan Milner Florida Future Realty, Inc.