We have some extremely creative customers; recently one our customers presented an idea to us that was so creative that we felt compelled to post it on our website. This particular customer has a Lease Purchase agreement with us, they have given us a small down payment and planned on adding to that down payment annually until they accumulated enough for the required down payment for the house. Then they will enter into an Owner Financed Sales Agreement. We had a discussion regarding the premium rental costs of homes in Southwest Florida during the winter season and they asked if we would consider renting out their house during the winter and applying the rental income towards their down payment. We said that we would be glad to do that because we get more inquiries than we can handle during the winter.
The end result is that the rental income each year will pay for their down payment. And, when they enter into a Financed Sales Agreement, the rental income will cover their Principal & Interest payments. Therefore, the total out of pocket cost towards the purchase of the home is the initial small down payment that they made.
This idea was so brilliant that we had to share it. If you are interested in the details of how this transaction works, please contact us.