As an investor you are going to want a great return on your investment. That is where we can help. In either our Seller Financing program or Lease Option program you can get great returns on your investment.
With the Lease Option you are receiving a much better quality tenant in your home who has the overall intention on buying the home. Because of that they tend to take much better care of the home. A typical tenant usually has the attitude of a tenant and thus tend to treat the property as a rental (much like when you rent a car). A tenant who has the intention on buying has a different attitude and will usually take much better care of the home.
Plus, the ROI (Return on Investment) is usually better. The tenant will be coming in with a non-refundable Option Payment which is applied toward the purchase. If they buy then they get this applied. If they don't buy then you received a payment which is much greater than a security deposit.
And the tenant/buyer will be paying a greater amount than what you would typically get as a normal rental. There is a Rent Credit that from each month will be applied toward the purchase in addition to the Option Payment. If they buy then you received market rents on the home. If they don't buy then you received greater than market rents. Regardless, you win either way.
In the typical Seller Financing scenario you are selling the home to the new buyer. Appraisals don't matter since you are the one doing the financing. Typically you will see a 20% down payment thus you get a big payment upfront. The tax benefits are also good and you should consult with your tax professional on the benefits of an Installment Sale. Plus, you get the added benefits of the interest payments.
In many Seller Financing situations the loan will be a standard Principle & Interest (P&I) loan of 30 year amortization. However, most sellers do not want to wait the full 30 years to get paid off. Thus, you can also have a Balloon Payment inserted into the loan whereas the buyer must refinance or sell the home by that balloon payment date. I have seen balloon payments range from as short as 2 years to go as long as 10 years. This is something that can be negotiated between both parties or set upfront.