Question and Answers
This page represents a typical scenario. The rent to own terms VERY from investor to investor and it is difficult to represent the different terms as the website would be very large and it would cause confusion on which program offers which terms. We will ask you what your goal is and then offer the terms the the then current rent to own investor option that we have available at that time. All terms will in writing upfront. If you are not satisfied with the terms there is no cost or commitment on your end.
YOUR REQUIRED CASH DEPOSIT
Leske Realty’s Rent to Own program requires either Option (A) a $3000-$5000 initial down – per investor
RENT TO OWN COSTS & FEES
The Investor charges a market appreciation fee based on the purchase price of the home for completing the RENT TO OWN home purchase. This fee ensures the investor will not sell the home to anyone but YOU while you are leasing the home from them. The Fee is typically 3% of the total purchase price (But may vary per investor). There are NO FEES to apply or to get qualified for RENT TO OWN. Total costs and fees are assessed when a Leske Realty Agent makes an offer on your dream home, the offer is accepted by the seller, and you agree to the lease and purchase agreements.
CANCELLATION FEES
If you decide, for whatever reason, you do not wish to pursue the financing and purchase of the home from the investor within the initial 6 year period, you may elect to not move forward with the right to purchase agreement and receive back your deposit provided the home is in the same condition when you moved in. Your rental contract term is based on a per contract basis and per investor basis. Please read your individual contract terms.
CLOSING ESCROW
When you are ready to secure a traditional mortgage and close escrow at the pre-determined amount as set in your schedule, you simply notify the investor and the transaction is completed. There are no pre-payment penalties or early closing fees. You may purchase your home from the investor at anytime up to 6 years. Leske Realty’s Rent to Own provides you the flexibility to secure your future mortgage on your time schedule.
YOUR FUTURE HOME APPRECIATION
While you are living in the home in good standing and are in an active agreement with the investor, any market price appreciation of your home, above the agreed to schedule, accrues to you. If you are able to sell the home at any time for more than you are required to pay the investor on your schedule, the excess profit (minus standard sellers closing costs) is yours to keep or is retained as home equity after you obtain a standard mortgage and purchase the home. This is on a per investor basis.
Who is the Investor?
Leske Realty’s Rent to Own program is unique in nature. We do not typically own homes that we are trying to “’sell you” under Rent to Own terms. We are offering the funds for you to choose the home and our investors to purchase it and you rent to own it back from the investors. So who are they? We have a select group of investors that have passed quality control standards and have verified the financials to support our specific program terms. Some of our investors are backed by Wall Street through diversified hedge funds. Some are private money investors and individuals. Collectively they offer over $150M in available funding capital that is earmarked for the Pacific Northwest real estate market.
DO WE HAVE ANY OWNERSHIP IN THE HOME?
No. You are a resident tenant until you exercise your right to purchase and close the sale.
HOW ARE WE INCLUDED IN THE RESIDENCE SELECTION PROCESS?
You are involved in the single family residence selection process in much the same manner as if you were buying the house on your own. After you select the property you want to live in, the investor works with you and your Leske Realty real estate agent on the offer and any counter offers. You and your Leske Realty Agent inspect the home together before the investor purchases the property and your lease of the house becomes effective.
HOW DO COMMISSIONS WORK?
The investor does not employ real estate agents or provide those services. The investors work with unaffiliated Leske Realty agents who are entitled to traditionally negotiated commission that is pre-defined in each MLS listing agreement that is paid by the seller or bank to a Leske Realty agent. You do not pay any fee or commission for real estate services.
WILL WE HAVE TO PAY MORE MONTHLY THAN IF WE WERE JUST RENTING THE HOME?
Your monthly lease payment will be comparable to rentals in similar neighborhoods for single family homes of similar value. Your monthly lease payments will be specified in the Lease Agreement. Lease payments will increase slightly on a fixed schedule for the six-year term.
HOW DO WE CALCULATE OUR MONTHLY LEASE PAYMENT FOR THE RESIDENCE OF OUR CHOOSING?
Since every residence and neighborhood is unique, it would be best to call our designated Rent to Own financial advisor and mortgage specialist with specific financial questions or the address of a property you are interested in and they will provide you an estimated payment schedule, at no cost or obligation.
DO WE GET A MORTGAGE INTEREST AND PROPERTY TAX DEDUCTION DURING THE TIME WE LEASE THE HOUSE?
No. Because no portion of your monthly lease payments involve the direct payment of mortgage interest or real estate taxes, no portion of your lease payments will be deductible for income tax purposes as mortgage interest or property tax payments. You pay traditional rent until you obtain your own mortgage loan and are vested in title.
WHAT HAPPENS IF WE WANT TO TERMINATE THE PURCHASE AGREEMENT SOMETIME WITHIN THE SIX-YEAR ESCROW PERIOD?
You have tenant rights under your lease agreement and you have an option to purchase. You will never be required to make the final purchase. That is your right if you decide to do so however. You must honor the lease terms of your tenancy per the agreement.
WHAT HAPPENS IF THE HOUSE IS WORTH MORE THAN THE PURCHASE PRICE IN THE PURCHASE AGREEMENT WHEN WE CLOSE ESCROW?
You will never be required to pay more for your home than you agreed to in the Purchase Agreement. Any appreciation above the fixed schedule of fees you originally agreed to is yours to keep, if you choose to sell the home. For example, if the Purchase Agreement fixes the purchase price at $275,000 but the house is worth $350,000 when you elect to close escrow, the $75,000 in appreciation will be paid to you (standard sellers closing costs apply – typically 9-10% is the cost of sale on residential real estate).
WHAT HAPPENS IF THE HOUSE IS WORTH LESS THAN THE PURCHASE PRICE IN THE PURCHASE AGREEMENT WHEN WE CLOSE ESCROW?
You then decide if you wish to follow through with the purchase or not.
WHO IS RESPONSIBLE FOR THE MAINTENANCE OF THE HOUSE DURING THE TIME WE LEASE THE HOUSE?
The investor is. They own the home and are responsible under the landlord tenant act.
WHAT KIND OF CUSTOMER SERVICE IS AVAILABLE? CAN WE CALL AT ANY TIME WITH QUESTIONS? WHO WILL WE WORK WITH?
During the approval and closing process you will be assigned a transaction coordinator to work with you every step of the way. Once you have moved into your home, you will be given a number to the property manager who will provide you with information or answer any questions.
AS PART OF the rent to own program, WILL YOU HELP US GET A MORTGAGE?
If requested, YES – we will introduce you to one of our trusted unaffiliated mortgage providers. Although we are not a mortgage lender, broker, or mortgage banker, we will assist you in working with mortgage providers in qualifying for a mortgage. Remember, the program is designed for individuals who want to and should be able to get traditional mortgages to close on their escrow, so it is in everyone’s best interest to see you get a suitable mortgage.
CAN WE BE EVICTED FROM THE HOUSE ONCE WE HAVE A LEASE AGREEMENT WITH YOU?
As long as you are current on your lease payments and in compliance with your other agreements with us, you cannot be evicted from the house. However, if you cannot qualify for a mortgage within the six-year escrow period, you will be required to vacate the house and the investor will retain ownership.
WHAT’S THE CATCH?
There is no catch. Under the Rent to Own program the investor seeks to purchase the home of your choosing from it’s current owner after you have entered into the Purchase Agreement and the Lease Agreement. The Purchase Agreement and the Lease Agreement are both conditioned on the investor acquiring the property from the current owner. Unless the investor initially purchases the house, you pay nothing going forward and any deposits and fees previously paid to the investor will be returned to you.
WHY IS LESKE REALTY OFFERING THIS PROGRAM? WHAT’S IN IT FOR THEM?
Leske Realty is a for profit company. We receive a normal industry standard commission paid by the investor to create the oportunity.
So how do I get started?
You simply go on line and fill out our application. We will pull your credit and review your situation to make sure you meet the program guidelines
How long does it take to know if I qualify?
We will have an answer for you in 24-72 hours
What paperwork will I need?
Once we review your credit profile, we will send you a “needs list” to complete. Everyone has a different challenge to deal with, so the list will vary. Be prepared to provide 12-24 months bank statements, W-2’s and tax returns for the most recent 2 years and 30 days recent pay stubs. An explanation letter will be needed to outline your situation. We want to be clear on your situation so we can help you with a plan and timeframe to convert your rental into a home purchase loan!
No. No short sales or Bank Repos. Limited new homes.
Can I sell something to get the down payment or get money from friends and family? How much do I need?
YES! Your funds for down payment will not be sourced. You WILL need to have funds in reserve, as well. Our investor requires 2-3 months of the rental amount, in case you run into trouble. This can be a 401K, an IRA or equity in another property. T
Can I remodel the home while I am renting?
Typically yes with small items with detailed written consent from the investor. Some investors may not allow it.
Will the purchase price be the same as it was in the beginning of the rental contract?
You can rent the property for 1 month to 4-5-6 years. The investor will charge you the original sales price plus an annual appreciate plus the cost to close the original sale and other fees which will all be disclosed in writing.
Can the seller sell the house out from under me?
No. With an option to buy, you have legal rights to the property.
I am well qualified and just want to buy a bigger home and keep my current home. My lender said I don’t qualify for both house payments! Can I buy with this program?
Maybe. On a per lender approval basis. We can use a rental agreement on the home you are leaving to offset the current mortgage payment.
Can I use my own lender and Realtor for this program?
No, this is an exclusive program with Leske Realty. If you choose to use this program, Don Leske or one of his designated associate brokers, will need to provide you with their excellent service!
Can I buy an investment property?
No. This is for owner occupied properties only. No multi-plex units allowed.
Can I buy with a co-signer, if I need to?
Special circumstances would need to apply. An example would be elderly parents moving in with their children. The situation would have to “make sense.”
What if I don’t like the house, after I have moved in? Can I get my money back?
Read your individual agreement for terms.