Here’s how we can pay FULL RETAIL PRICE for your property

Question: If you’re going to deposit proceeds from a property sale into an investment fund or money market, which could be risky, why not keep the money in your safe asset and earn a fixed 2% return paid up front in monthly installments? You’ll save 15% or more in Capital gains tax as well as 10% or more closing costs.

Interesting fact:

Banks make money by lending money. Many years ago, when most properties were purchased with cash or something of equal value, banks saw an opportunity to significantly increase the amount of money they could lend and secure the pay back of that money with a valuable asset. The property itself.

And so, the great American dream of homeownership was born. Anyone with an average income job and good credit could now buy a home of their own! Forget the fact that you’ll be paying back 3 times the amount you borrowed, you are a “homeowner”

If you have equity in your home or own it 100%, you have the ability to make money like a bank. 

When you sell a property the tradition way using a realtor, you pay:   

1. Realtor commissions 10-12% of selling price

2. Title fees 2-3% of selling price

3. Attorney fees $600-$1200

4. Prorated and current property taxes (previous yr & YTD tax bill)

5. Inspection repairs or credits

6. Capital gains tax on any amount above what you originally paid for the property  

The capital gain tax rate is 0%, 15% or 20% on most assets held for longer than a year. Capital gains taxes on assets held for a year or less correspond to ordinary income tax brackets: 10%, 12%, 22%, 24%, 32%, 35% or 37%.

When you sell with us for FULL PRICE using a “Lease-Purchase Option”, you do NOT pay any of the above fees. We purchase your property “as is” and you’ll have enough time to decide how you want to defer any capital gain tax through another investment. In the meantime, you’ll earn interest on your equity paid to you in monthly installments.

The number one fear for most first-time sellers who provide financing is…

What if the buyer stops paying?

First and foremost, we are the middleman guaranteeing your investment. 

We work with lenders and creditors to ensure the lease-purchase buyer we place in the property is a good risk and will follow through on their purchase.

Advantages of Lease-Purchase Options:

Experienced investors will view a buyer much differently than a tenant because a buyer has a lot of skin in the game. It’s a lot less likely that a buyer is going to default simply because they have put a percentage down on the property. Selling a home for $300,000, they may put $10,000 to $20,000 down. That’s a substantial amount to walk away from, so if they stopped paying, they would essentially be losing that money. Lease-purchase buyers also tend to take much better care of a property as they will eventually own it.

Interestingly, many investors look at a lease-purchase buyer who stops paying as a good thing because they have that money on the front end in addition to monthly payments and taxes made as well as any repairs made. If the buyer stops paying, they can have them removed, and they can actually go ahead and resell it with seller financing and typically for even a higher price at that point. However, keeping in mind that we are the middleman guaranteeing your monthly payments, you’ll never have reason for concern.

We also maintain an escrow with money that we received on the front end to put into any maintenance, repairs or anything else that needs to be done. Worst case scenario or like some investors look at it, best case scenario, if a buyer were to stop paying, our process for eviction is very simple because we have structured their financing where the title stays in your name and does not transfer to the buyer until after they acquire their own mortgage. You have control over the title, you have control over the property, and you can turn around and sell it again if needed. 

It’s not likely that the buyer will default because there’s so much skin in the game, but it does happen and it can happen so it’s important you’re educated on that. 

We hope this has been helpful for you. If you have any questions, please feel free to reach out to us. We’re more than happy to help you out!

Below is just one example of selling a $300,000 property with 100% Equity. We’ll purchase and pay full price for properties with an existing mortgage and any percentage of equity. 

Original purchase price $150,000
Current sale price $300,000 (if you sold your property)

Subtract 10% closing costs = $270,000
Subtract 15% tax on the capital gain of $150,000 ($300k – $150)

Total Net Proceeds $247,500 (you’ve already lost over $50,000)
1-year simple interest x 1% (bank or money market if you can find it)

$2,475/12 months = $206.25 a month (slightly higher if compounded)

Our investment option:
Owner Finance position $300,000 (No closing costs or Capital gain tax) 1-year simple interest x 2% (our rate)$6,000/12 months = $500/ month (Net monthly cash flow)
Cash out when you choose. We will finance 2-5 years or longer with a balloon payment at the end of term.

Call now for a Cash Offer