Most Realtors underestimate the magic power using of OPM (other people’s money), to help put renters into homes that they can actually purchase back from the landlord at any time (well almost any time).. it’s not something that comes up during your training when you’re getting into Real Estate; many don’t even know that this option exists!
Hi! I’m JaLynn Manser, a 3x ICON agent in Phoenix, AZ, and I’ve built my book of business, primarily by utilizing Lease Purchase programs to help get renters into quality homes. For the past two years, I’ve been able to put 8-10 SALES commissions in my bank account (cha-ching!) EVERY MONTH, just by helping renters get into homes, and I am passionate about helping other Realtors unlock the secrets to get on the fast-track of becoming a Lease Purchase Specialist too!
As a Realtor, how will a lease purchase contract benefit me?
As a Realtor, navigating the ebbs and flows of the real estate market can be incredibly challenging.
However, the Lease Purchase program can be a game changer for your business, providing a new way to generate sales commission and help clients achieve their dream of homeownership.
How many of you have turned away a Rental Lead because “they are too much work for too little money”, or the word “Renter” just leaves you feeling kinda “meh”?
Well.. what if you could put that Renter into a home.. he/she Is just going to RENT the home, but guess what??? Your commission is NOT $100, $200, $300, etc..(the “normal” rental commission paid).. It’s whatever is listed in your MLS as to the co-broke on the SALE of the home!! I know right???
My average price point in Phoenix, AZ is about a $450K purchase price with an average 2.5% commission.. y’all are smart and can do the math.. I’ve never loved working with Renters so much before in my life! (And I’ll bet you’re going to love working with them too!) By the way, you get paid at the close of escrow, NOT when the renter moves in, or when they exercise their right to purchase.. quick close too! I mean, who doesn’t want THAT? I just get so excited talking about it!!
By offering the Lease Purchase program to your clients, you can attract a wider range of “buyers” who may not qualify for traditional mortgages just yet.. heck, maybe they don’t even WANT to buy.. they just want to Rent, but they want more options. You, as
the expert, have the solutions to get those Renters into homes, close more deals, ultimately increasing your sales commissions and growing your business- YAY!
Benefits of a Lease Purchase Agreement Program
The Lease Purchase program is a great option for those who may not qualify for a traditional mortgage.
For example, if you are self-employed or have creative sources of income, you may not meet the income seasoning requirements for a traditional mortgage. A Lease Purchase program can help you get into a home while you work on building your credit or letting your income season per lender requirements.
Also; someone who’s had a recent Bankruptcy event, most lenders won’t touch them with a 10 foot pole for two-four years!!
With a Lease Purchase, you can get your client into a home NOW! -NO BK SEASONING.. WHAT?????
I know, right?? Pretty gosh-darned awesome. Oh, and did I mention that there is zero obligation and NO penalty if your client decides NOT to buy the home?? Yup..
you heard me right. It’s truly a NO-CATCH situation… it’s like renting but BETTER.. it’s Renting WITH PURPOSE. Just think about all the people that you could be helping right now? They’re stuck.. and They NEED you!
In addition, and as a bonus, the Lease Purchase program can be a great way to build long-term relationships with your clients. By helping them rent with the opportunity to buy, you candemonstrate your commitment to their success and build trust and loyalty. This can lead to repeat business and referrals, further growing your business and reputation as their trusted Realtor and Advisor… All VERY cool stuff.
To tap into this underrated niche in the real estate industry, it’s important to educate yourself on the Lease Purchase program and work with reputable companies that specialize in this area.
Overall, utilizing the Lease Purchase program can be a valuable tool for realtors looking to scale their business and build their real estate portfolio, AND homebuyers looking to get into a home with the least amount of money out of pocket. It’s a win – win!
Lease Purchase Agreements! How Does it Work?
The process of a Lease Purchase program starts with finding a Renter that wants to rent a home. You’re going to get that Renter pre-qualified for a maximum amount of monthly rent (let’s say up to $4,000) The Renter is going to tell you (after they are pre-qualified), “Hey Mister or Miss Realtor Boss person; I’m looking for a 3 bedroom, 2 bath single-story home in zip code 12345 for around $2,200.”
You, as their trusted Realtor, are going to take your client out to tour those homes that fit their budget and criteria; they are going to let you know WHICH home they absolutely love and want to move forward with; YOU are going to represent the BUYER who is BUYING the home for the Renter to RENT.. That buyer is going to pay CASH for the home in most cases, go through the normal inspection period, etc… and when escrow closes, your client gets to move into the home shortly afterward and can rent the home for as long as they like, or conversely they can exercise their right to purchase ANY time!! (Up through the end of year 5 in most cases)
When the Renter is ready to buy the home, they can use whatever lender they want and whatever loan program.. it doesn’t matter.. seriously.
Check out my YouTube Channel.. I’ve got TONS of videos all about working Lease Purchase:
https://www.youtube.com/channel/UCQN0i0PhFYUPwq6voSW49YQ
Ok, so how and where in the heck do you find all of these Renters?
Well, in the past 5 years of my Real Estate Career, here are just some of the ways I’ve gotten leads:
1. Craigslist (yes, I know it’s old school but it works!) You post an ad for a home that is possibly available for rent (use great photos), and the phone calls and texts magically start coming in! (be sure to get the listing agent’s permission to use their photos)
2. Lenders: Lenders typically have a plethora of buyers that they are unable to get financed due to income,credit, BK, etc… you can get that “buyer” into a home now and the Lender will get them financed when they are ready! Cool huh?
3. Property Management companies-Most PMs have extra applicants that they just don’t have enough inventory for. They are HAPPY to hand over these leads to you for a referral fee.
4. Advertise your own, or another agent’s rental listings.. you are looking for Renters and they need to know you!
It’s a match made in Heaven 😊
5. Social Media.. Most people love watching videos. Put videos out there about your amazing leasing program.. show some inventory, and watch those messages come in!
6. Other Realtors. Ask them, “Hey, do you have any Rental Clients you don’t have time for or don’t really want to
take on? I’ll help!!”
Look.. Renters are easy to find.. they are everywhere.. The question is; are YOU where they are looking? Hmmmm… I know that I sure am!
Working with Reputable Companies
When considering a lease option program, it’s important to work with reputable companies that have experience in this area. Some that I’ve worked with are: HPA (Home Partners of America), Divvy Homes, Pathway, and Trio.
It’s also important to do your due diligence and thoroughly research any company before working with them. Look for reviews and testimonials from previous clients to ensure that the company has a track record of success.
Speaking of Reviews and Testimonials; check out some resources here, showing us talking about the Lease Purchase program, along with some of our lovely clients 😊: https://www.thejgroup.info/links-to-check-out
My darling hubby, Kelly, and I have been interviewed on ABC15 several times talking about the Lease Purchase Program because we just believe in it and love it so much! We’ve also helped so many families get into homes that would not have otherwise been able to do so and we’ve not got raving fans for life!!
Wanna learn MORE? I mean, I could write a freaking NOVEL about all of the intricacies of working the Lease Purchase Program, however, I’ve only got room for a few more words …but you’re in LUCK! That’s because I’m hosting a FREE 30-minute webinar every Friday at 8:30 pst, to go over the basics and answer YOUR questions about how to best utilize the Lease Purchase Program in your Real Estate business. Click the link here to opt-in get and invite to the webinar: https://www.levelupwithleaseoptions.com/optin1674489537159
Thanks for reading! I sincerely hope that you found this information useful for lease agreement and feel free to reach out to me on any of my Socials! 😊 Be well my friends.
Meet JaLynn Manser
Ja Lynn Manser is a realtor in the Phoenix Metro area and the owner and CEO of The J Group RE.
After spending l4 years as a stay-at-home mom to her three daughters, she found herself suddenly single and working as a barista at Starbucks with no special skills. She transformed her life and in just six years, she became a multi-million dollar real estate producer!
With a B.S. in Journalism degree and years of experience in sales, JaLynn discover eXp Realty in 2018 and has since become a three-time ICON awardee and eXp Really mentor.
She now resides in Downtown Phoenix with her beloved husband Kelly and leads a team of 1O agents, VAs, and admin. Together they specialize in Lease options in Phoenix AZ, Southern California, and Las Vegas Nevada market.
In aaaiziontoneri m pressiveac nievement s,a Lynnis also a semi -finale sz inGrantCardone’sthe GreatAmericanSpeaOff.
