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Sample Illustration "The Lease-Option Alternative" |
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| Option Price: | $100,0001 | |
| Basic Rent: | $7952 | |
| Non-Refundable Option Money: | $6,000 (6% of Option Price to obtain FHA Loan) |
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Cash Portion: $ 1,5003 |
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| Note Portion: $ 4,500 | ||
| Monthly Payment on Note Portion: $ 125 | ||
Total Monthly Rent: $795 + $125 = $920 |
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Tenant/Purchaser is responsible for all Maintenance and Repair Costs during 36 month Option Period in addition to any lender work requirements at time of financing. Therefore we suggest that Purchasers complete a professional home inspection prior to executing the Lease-Option Documents. |
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| 1 The Option Price is guaranteed for 12 Months at a time. The Option period is for 36 Months. The Tenant/Purchasers may close the sale any time without penalty. If they fail to close before the end of the 1st 12-Month period the option price is adjusted according to a local market index. This process is repeated at the end of the 24th Month for the third twelve-month period. | ||
| 2 At the end of each 12-month period the rent will increase a minimum of $50 per month. | ||
| 3 This is the minimum amount of cash required to take possession of this property. The larger the cash payment towards the Non-Refundable Option Deposit, the smaller the Monthly Payment on the Note Portion. All Option money received will be credited to the Purchaser at the time of exercising their option, according to the terms of our agreement. | ||
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Securities offered through Pacific West Securities, Inc.,
Member FINRA/SIPC Advisory services provided through
Pacific West Financial Consultants, Inc., a Registered Investment Advisor
Investment Advisor Representative with Pacific West Financial Consultants, Inc.