Frequently asked questions

If I Don’t Have A Mortgage, Can You Still Buy My House?


After reviewing how a lease purchase works, you could be thinking, well, you mentioned that you take over a mortgage, but what happens if I don't have a mortgage? Can I still do a lease purchase? Well, the answer is yes. We actually have a couple options for you if you don't have a mortgage or your house is debt free. The first option is we can do a lease purchase, meaning we’ll agree upon a price today, we’ll then take over any and all responsibilities associated with the property for a period of time, including your taxes, your insurance, and any and all future repairs and maintenance. Since you don't have any mortgage payments, we're going to be making an agreed monthly payment to you on top of your taxes and your insurance. We’ll agree upon a definitive end date and on or before that end date, you're going to be completely cashed out.
Now with this option, the title is going to transfer at the end of the term. But the second option, we're going to buy your property outright, what we call owner financing. This means that we're going to agree upon a price today, we're then going to close on that property. We're then going to make monthly payments to you for your equity with a balloon date. On or before that balloon date, you're going to receive a lump sum of cash. Now, as the seller, you're going to be acting as the bank. Typically in this option, we're making monthly payments that are principal only. And we make principal only payments because you're not going to have to claim the interest. So, you're going to be receiving the full amount, the full payment instead of claiming it on your taxes, which helps you to maximize your return on your property. With owner financing, we're generally able to pay a premium on the property and close on it in a relatively short period of time. Typically, between 24 and 72 months. Sometimes we can have these options be extended a lot further. We're here to buy from sellers just like yourselves to maximize returns and get you relieved from the property with no responsibilities.




If My House Is Only Worth What I Owe, Can I Sell It Without A Loss?


A question we get often is what if I'm selling for what I owe, is the lease purchase still a good option for me? Well, the answer is yes. And we have a couple of different options that we can certainly help you with if this is your situation. What the market is currently telling you is that your house is worth exactly what you. So, the comparative analysis of the houses that were sold in the area are equal to your selling price, which is also equal to your debt or mortgage. So, what we can do here is we can structure a lease purchase. It generally has to be a longer term because of two things. Number one, we have to wait for the market to continue to trend up and number two, then we also have to wait for the debt on the house to be paid down so that there's enough spread between what we can sell it for and what you owe for a profit margin. The other option that we can do is we can actually buy the house. Doing so we'll help you avoid any transfer fees associated with your state and any real estate commissions making it a hands off transaction for you. We will then transfer the title and then the mortgage will stay in your name until the day that it's paid off.




What Is A Lease/Purchase And How Does That Work?


We would say that the number one question we get from sellers like yourselves is, what exactly is a lease purchase? Well, it's pretty simple. It means that we agree upon a price. We then take over any and all responsibilities associated with the property, including maintenance, taxes, insurance, mortgage payments, and future repairs, any and all responsibilities. We then agree upon a definitive end date. On or before that date, you're completely cashed out. So, for example, let's say that you have a purchase price of $300,000 and you have a mortgage of $200,000. What we're doing here it is we're locking in the purchase price between what you owe and your equity. You're locking in $100,000 to be cashed out on or before the date that we agree upon. Let's use 36 months for example. On or before 36 months, your mortgage is going to be completely paid off, that $100,000 in equity is going to be received by yourself. As you can see, there are some major benefits to at lease purchase.
First and foremost, you're going to be able to maximize your return because obviously, there's no real estate commission or fees associated with the transaction. Secondly, we can take over all responsibilities on your property. Again, it's your mortgage payments, taxes, insurance, any and all responsibilities, including maintenance is now taken over by us. This is a completely hands off deal for you. A lease purchase can certainly be a great tool to get your property sold.




What’s The Difference Between Lease Purchase And Owner Financing?


We get asked by sellers like yourself all the time, what is the difference between a lease purchase and owner financing? Well, the major difference is that the title is going to transfer at the end of the term with a lease purchase and at the beginning of the term with owner financing. With a lease purchase, it means that we agree upon a price today, we then take over any and all responsibilities associated with the property, including if you have a mortgage taxes, insurance, anything and all future repairs. And then at the end of the term, it turns into a traditional sale, which can then be cashed out completely. So, we can also call this what it is, it's a delayed cash sale. With owner financing, it means that you're going to agree upon a price and we’ll then close on it. That means the title is going to transfer from you to us. You're then going to be secured by first position on your property and you'll essentially be acting as a bank. We’ll then be making monthly payments to for your equity with a balloon date in the future, which we’ll both agree upon and on that balloon date you'll be cashed out completely.




What’s The Process Of Purchasing My Home?


What is the process of purchasing my home? Well, it's simple. First, we're going to have a few conversations over the phone. What's going to happen in this conversation is we're going to discuss how we buy our properties and make sure that it's a fit for everybody. We want to make sure that there's a clear understanding of purchasing the property, and that our goals are in line. We want to make sure that we're able to create a great situation for everyone. After our initial conversations, we're going to set up a time for us to come out and view your property will take some photos and write down some information to share with the office. We’ll want to discuss the property state and understand if there's any repairs or improvements that need to be made, as well, its location, neighborhood and any perks it may have. While we’re there, we want to see the latest mortgage statement, including taxes and insurance because that's something that we're going to be taking over. So, we definitely need to see those numbers. If you don't have them at that time, you can always scan them over and send them over email. Once we're back from the appointment, we'll do a comparative now analysis of all the property sold in the area and we’ll base it on homes that are very similar in size and layout. We’ll then tell you what we discovered and make sure that we're both creating a win win situation. Then we'll take all of our numbers, enter them into forms, and then send them over to you via email to sign electronically. We normally use DocuSign. If you'd like to print and then scan back that's fine, whatever is easiest for you. Once they're signed, we're going to start working towards purchasing your property.




Why Don’t I Just Sell My House On Lease/Purchase On My Own?


You might be thinking, why shouldn't I just do this on my own? It seems like a pretty easy system. Well, the truth is, we definitely don't recommend it. We have years of experience in our office, we do these deals day in and day out. We may make it seem like it's easy, but it can actually get very complicated with a whole lot of moving parts. And that's why we're here, we specialize in it. We've come across sellers who feel like they can, but they missed one very important detail, they don't make sure that their lease purchase buyer is going to be set up to be successful. And that's what we do. We created a process, which #1, sets up a full vetting check with the buyer. #2, takes a non refundable deposit. #3, it calculates the buyers mortgage readiness date. #4 gives buyers tools for credit repair. #5, offers credit enhancement or seasoning as the banks call it. And finally, #6, it has comprehensive attorney agreement that lock in the purchase with the buyer. So, the real question is why wouldn't you rely on a company with years of experience and can make it a completely hands off transaction for you. Everything that we do in our system is completely set up to make sure that the tenant buyer becomes a buyer. We are here to get you to the finish line, to get the property cashed out, which is actually your ultimate end goal of selling the property. Why not have us be your buyer, work hand in hand with the tenant buyer and work them through our process to make sure that they're successful?





CONTACT

Max Property Solutions

908-520-6033

sm@maxpropertysolutions.com

146-B Ferry Street

Unit #1006
Newark, NJ 07105

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