Lease Purchase Profits - Basics

A Lease Purchase is a powerful and profitable tool in the hands of a good real estate practitioner. The investor, and the real estate agent, can sell a property at the top of the market, in record time, with little to no closing costs, and receive rent right up to the day of the closing when they understand the concepts of the Lease Purchase.

Crown started doing Lease Purchase in 1988 and did them badly for the first five years. There was no training to speak of and we had to learn our way through it by making lots of mistakes.

We started in the late 80’s with a pie-in-the-sky model that had every tenant taking care of the property just as an owner would; every tenant paying rent as agreed; every tenant closing because no one would walk away from $5,000.00 earnest money; and every tenant remembering what they agreed to, two years later, when they went to closing. We closed one out of two in a good year and dealt with lots of arguments over non-refundable earnest money, maintenance, security deposits, and rent credit.

In the early 90’s we got with Dickenson Gilroy, LLC, the largest real estate law firm in the south, and redesigned our documents to correct the mistakes we made, and lessons we learned. Since then we have done over 300 lease purchases, close three out of four in a bad year, and four out of five in a good year. We have almost no arguments over earnest money and currently do three to five deals a month.

This class addresses “when buyers and sellers need to use the lease purchase strategy: how
to locate buyers; how to get them comfortable with lease purchase; how to structure the terms; how to deal with the earnest money; how to handle rent credit; how to set the price; how to deal with ones that can’t close; and how to keep yourself out of hot water when they crash”.

Authored by: Robert M. Locke RMP, MPM

GREC # 42097 3 hr CE

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