Info 100HOW DOES A LEASE/OPTION WORK?

This video has a lot of information. The money you put down (option fee) and your rent credit is converted to a down payment at the end of the lease. You have a choice of purchase terms:

Appraised Value
This is the average of similar properties determined by a licensed real estate appraiser at the end of the lease. The benefit with this method is that the property will be purchased at a fair value.

Set Price
A price agreed by you and my partner(s). The benefit with this method is that there is no mystery to the sales price. The sales price is agreed upon signing the lease / option contract.


green info 32ARE THERE BACKGROUND CHECKS?

YES. The only thing we check is criminal history and eviction history. If you have a recent eviction or have a warrant out, you will have to move along. Other than that, we have discovered that folks who put a bunch of money down with the intention of purchasing a home make better tenants. It will be your responsibility to work on your own credit to get qualified to purchase the home. We provide you with a list of vendors to choose from and offer personal counseling.


green info 32HOW MUCH MONEY DO I NEED?

The Option Fee + First Month Rent. If you have more than half the option fee and the first monthly payment on hand, we can usually work something out. If you don't have enough money on hand, you should select a less expensive property. Buyer/tenants who fail the most are those who stretched themeselves too thin. Don't make the same mistake.


green info 32CAN I HAVE PETS?

Yes. You can have any animal(s) unless there is a community restriction. Pit-bulls are not allowed. We have no issues with pit-bulls. We love pit-bulls! We don't care how well behaved your pit-bull is. Even if your pit-bull uses the toilet and serves tea with a bow-tie, we can't help you. The reason is because it's nearly impossible to get insurance for a home if a pit-bull is on the premises. After you qualify for your home loan, you can wrestle with that insurance problem on your own.


green info 32DO YOU ACCEPT SECTION 8 VOUCHERS?

No. The government doesn't allow you to use vouchers for lease/options. You can take this issue up with them.


green info 32HOW LONG IS THE LEASE?

You decide. Most of our properties have flexible terms. Unless the term is stated on the property page, it can be what ever you want. It is not in your best interest to have a long lease period. The sooner you qualify for a conventional loan, the more money you will save. Most people go for a one year lease. If your credit is over 600, one year is sufficient.


green info 32CAN I PUT MORE MONEY DOWN TO LOWER THE MONTHLY?

Yes, but it's not wise. You want to keep money in the bank for a rainy day. You also need to get mentally ready for the mortgage. The monthly payments you see are usually less than your mortgage at the end of the lease. Click on the financial tab of each property to see what your estimated mortgage will be for that particular property.


green info 32DO I HAVE TO GET A LOAN AT THE END OF THE LEASE?

Yes. You will want to work with an experienced mortgage broker who has knowledge of how lease/options work. We will provide you with a list of people you can choose from OR you can use your own people.  The key to your success is making payments on time, actively cleaning your credit, and making enough money to support the mortgage payments. Being late on your payments creates serious problems in getting you qualified.


green info 32DO YOU REALLY HELP ME PURCHASE A HOME?

Yes. We really do help people get into a home. Here is our most recent testimonial:

I cannot say enough good things about my experience with Barb Eagan and Limestone Investments in buying my first home.  Barb worked for me as well as the seller and I never felt that she was not 100% on my side. She made sure I got every penny of my rent credit applied to the purchase of my home. Barb was there for me every step of the way, which included holding my hand through my total ignorance of the process, and not letting me get discouraged when things got a little tricky with all of the loan documentation. I especially appreciate the dedication and hard work Barb did for me: negotiating the contract and recommending a good lender for me. She even offered to go with me to sign all of the loan paperwork to make sure everything was in order, and made herself available by telephone while I was signing.  Cheryl Berdahl


green info 32WHAT IF I DON'T QUALIFY FOR A LOAN AT THE END OF THE LEASE? 

You could lose your option fee and/or rent credits. It is important that you actively clean up your credit, make payments on time and make enough money to support the mortgage payments. Each property on my site gives you an estimated mortgage on that property. In most cases we will extend the contract but we don't recommend putting yourself at the mercy of someone. If you have problems paying your rent right now, you need to step away from this web site. If you can't pay your rent on time, you have no business owning a home. Don't even call us as you will be evicted when you miss more than one lease payment. Evicting people is the part of our busines that we don't enjoy but we are good at it.


green info 32WHAT WILL MY MORTGAGE PAYMENTS BE AFTER THE LEASE?

Every listing shows you "about" what the mortgage will be. Generally speaking you will be paying $800 per $100k of house. A little less if you clean up your credit and make money, a little more if you have bad credit. Speak to a mortgage broker if you want an accurate answer. If you don't have a mortgage broker, call ours so you can get the straight facts based on the information you provide.


green info 32ARE THERE TAX BENEFITS TO THESE HOUSES DURING THE LEASE?

No. Our investors don't want to share the tax benefits and don't want to spend the time creating trust funds with beneficiaries. It's too much of a headache and we are pretty much set in our ways.


green info 32DO YOU HAVE "CONTRACTS FOR SALE" OR KNOW SOMEONE WHO DOES?

No. As a rule, you will need between 10% - 20% down to get into one of these AND they are really hard to find. Best of luck.


green info 32CAN I JUST DO A STRAIGHT PURCHASE ON A PROPERTY?

Maybe. Most of the properties we own need to be held for a year or so for tax or loan penalty reasons. If you qualify for a straight purchase, you are better off swooping in on a foreclosure than haggling for a lease/option on our website. If you qualify for a loan and want someone to help you purchase a foreclosure, we will be happy to help you.


green info 32CAN I CHANGE MY MIND ABOUT BUYING THE PROPERTY?

Yes. You will lose all your money. The best strategy to take if you change your mind is to proceed through the sale, sell the property after you have secured financing and then take your money after you have sold the property.


green info 32WHAT ARE MY RESPONSIBILITIES DURING THE LEASE?

Utilities + First $500 in Repairs. You are responsible for the first $500 in repairs, all utilities and maintenance of a pool/jacuzzi (if there is one). This means, we are responsible for only major ticket items like AC and roofs. You are not responsible for HOA fees during the term of the lease. If there are any exceptions, they will be noted on the property page.


green info 32ARE THERE ANY PROPERTIES NOT SHOWN ON YOUR SITE?

No. We have nothing to gain by hiding properties. We built this site because we don't have time to call 700 people every time a property is added. We usually post about 4 properties a week and usually the day we get them.  Fill out our form and you will get notified every Monday of new and reduced properties.


green info 32WHAT IS TITLE INSURANCE?

You are insured against liens on the title. For example, if some general contractor stepped forward and declared he wasn't paid for a repair, it would be title's responsibility to pay the general contractor up to the insurance amount. There are literally thousands of ways a property can have a lien and you don't want to have exposure to them.


green info 32WHAT ARE MY CHANCES OF SUCCEEDING IN THE PURCHASE? LESS THAN 10%

That's right. We saved the best for last. Most lease/option tenants don't make it:

50% of you won't make it because...
You give up. About month number six you realize that owning a home is way more than meets the eye. Since you decided that you needed the same lifestyle you had before, you stretch yourself into a house you can barely afford. All it takes is one little hiccup and your world collapses. "I lost my job, my loser boyfriend gambled all the money, my kid got sick, my car broke down..." We get a country and western song every week. 80% of the people we evict are single women.

20% of you extend your contract because...
You dilly dally and don't clean up your credit. You keep promising me and everyone else that you will get on it. Next week turns into next month which leads to next year and wham! One year went poof and you are in the same boat you were in before. The good news is that you still haven't wasted your money because most of our investors are willing to extend your option. The bad news is that you haven't made any progress.

20% of you wont make it because...
You ignore our warning that you need 3 times the mortgage to make it happen. The new job or company you started doesn't come close to the income needed to qualify for a loan. You had pie eyed dreams that you will be making twice as much as you did last year.

10% of you will make it because...
You followed our advice:

  • You started modestly in a home that you had no problem making 3 times the mortgage. As you were looking at properties, you stayed away from the ones that you couldn't afford at the end of the lease.
  • You hired a professional to assist you in getting prepared to qualify for a mortgage.
  • You didn't tell your boss to piss off. You sucked it up, kept your head low and decided to be patient for the day you qualified for your mortgage and closed escrow.
  • You saved your pennies for the rainy day when the dog got sick and the car broke down. You didn't call us with your country & western song.
  • You avoided the new car lots and jet skis. You hunkered down and stayed focused on staying away from all the traps America has to offer. You finally realized that owning a new car or dining room set won't make you any happier or sexier.
  • You focused on getting your credit cleared up and realized that is a constant effort. We won't be doing that for you.
  • You frequently chatted with our mortgage broker who specializes in working with my lease/option tenants.
  • You didn't wait until the month your lease expired to get all your paperwork in order. You called or emailed us 4 months prior to your lease/expiration to let us know you are ready to rock.

 

 

APPRAISED VALUE PURCHASE PROCEDURES

  1. After the buyer has notified the seller their intent to purchase, the buyer agrees to provide an approval letter from a licensed lender if the buyer is seeking a loan or a bank statement indicating sufficient funds can be used to pay for the property in cash. The loan approval amount or proof of funds must be within 20% of the estimated value at the time of purchase.
  2. The seller agrees to pay for an appraisal. This will be the first of 2 appraisals and not the purchase price.
  3. Limestone Investments will generate a standard GLVAR purchase agreement for the first appraisal. Both parties will sign that purchase agreement with the addendum that the purchase price will be adjusted when the lender has it appraised. If there is no lender, the buyer may pick a licensed appraiser of their choosing.
  4. The buyer agrees to pay for the second appraisal. The final purchase price will be the average of the 2 appraisals.
  5. The seller agrees to pay Limestone Investments $850 to coordinate the sale of the property.
  6. The buyer agrees to pay Limestone Investments $850 or an agent of their choosing to coordinate the sale of the property. Back to Top


 
SET PRICE PURCHASE PROCEDURES

  1. After the buyer has notified the seller their intent to purchase, the buyer agrees to provide an approval letter from a licensed lender if the buyer is seeking a loan or a bank statement indicating sufficient funds can be used to pay for the property in cash.
  2. Limestone Investments will generate a standard GLVAR purchase agreement for the purchase amount.
  3. The seller agrees to pay Limestone Investments $850 to coordinate the sale of the property.
  4. The buyer agrees to pay Limestone Investments $850 or an agent of their choosing to coordinate the sale of the property. Back to Top

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