Comments on: Lease to Buy Houses | Elliott Homes Lease to Purchase Program

By: Mike Jones

Mike Jones — Thu, 08 Oct 2009 15:26:23 +0000

I think a lease purchase can be a very good idea in these economic times. Im not sure about speculating value on brand new homes but if it is a way in for potential buyers that may not have another way then ok.
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By: michael

michael — Tue, 25 Aug 2009 15:45:59 +0000

i am trying to sell my manufactured home on 1 acre and am having no luck. i have an invester interested on doing a lease to purchase. we want to move badly and are considering it. i have my concerns though, like what if he backs out of the deal, am i still responsible for the house? i cannot afford two mortgages. if there is repairs that need to be done am i resposible? im really not to educated on this matter and its pretty scary. i was told by an agent that if he backs out of the deal, to just let the house go and it only takes 80 points of your credit score. just doesnt seem right to me. help. thanks

By: Michael Pennock

Michael Pennock — Thu, 20 Aug 2009 15:22:26 +0000

And the number for the office in Tempe, AZ is

480-831-9200

Michael Pennock
Elliott Homes
Sales Administrator

By: Derek Anglin

Derek Anglin — Wed, 19 Aug 2009 22:00:47 +0000

Responding to the question about the value in the Lease Purchase program for builders. – As a representative for Elliott Homes in Arizona I can tell you that most builders are not able to handle this type of act due to bank involvement. Most builders either have a loan out on the land development or construction of the home that forces any program like this to be reviewed by the bank with an interest in that home/lot. Since there is a higher level of risk to a “lease” versus a home that sits with no buyer, the bank/builders are not interested in allowing that type of program.
Elliott Homes is one of few cash builders in the valley. We pay cash for the land, pay cash to develop the lots, and pay cash to construct. Therefore the homes we have are owned “free and clear” of any other lien holders.
We started the 12-Month Lease Purchase program for our inventory homes in January of 2009 and to date have a total of 27 “tenants” working towards home ownership. We have already closed 2 deals before the end of their individual 12 month timeframe. We anticipate another six will close before the end of the deadline for the government tax credit (November 30th) and two more before the end of the year. Overall it has been very successful.
On the flip side, we have had to deal with some poor “buyers” to include one eviction. We started this program hoping for a 75%+ success rate and the ability to offset multiple monthly expenses (HOA and utility bills). We are doing much better than originally expected and due to a rapid increase in sales over the past few months we have cut back on the availability of this program.
As of today 8/19/2009, the program is only available on select homes in Buckeye. If you have any questions, please feel free to contact our offices in Tempe, AZ.

Derek Anglin
Elliott Homes, Designated Broker

By: Elliott Homes Arizona

Elliott Homes Arizona — Thu, 30 Jul 2009 16:54:20 +0000

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By: Elliott Homes California

Elliott Homes California — Thu, 30 Jul 2009 00:47:39 +0000

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By: Phoenix CPA

Phoenix CPA — Wed, 04 Mar 2009 17:29:11 +0000

Great analysis - Lease Purchase Homes... While I'm no expert on 'Lease to Own' housing, I do agree with you in that there are no tax benefits for leasing a home. Phoenix CPAs last blog post..How to Cope with Stock Market Volatility

By: Lease Purchase Homes

Lease Purchase Homes — Tue, 03 Mar 2009 22:23:21 +0000

Ellen- The tenant buyer gets no tax benefits The investor (party in the middle) gets no tax benefits. The investor only gets tax benefits if and when they cash the original owner out and retain the tenant buyer. The owner of record (who is also paying the mortgage and taxes) retains all the tax benefits until the property is sold to someone else (investor or tenant/buyer). Lastly, in a sandwich deal I try to structure it so that I am responsible for the first $200 of any repair and the tenant is responsible for the first $200 of any repair...so technically they both get a benefit that doesn't cost me anything. Lease Purchase Homess last blog post..Financing Real Estate with Money Partners

By: ellen sanders

ellen sanders — Tue, 03 Mar 2009 22:19:13 +0000

Thanks for answering my question. Also, is any part of a lease purchase considered as a morgage interest payment, i.e. tax deductible?

By: JaysonNHS

JaysonNHS — Tue, 03 Mar 2009 20:43:54 +0000

Ellen,

Thanks for stopping by.

I don’t think the buyer, in a lease purchase agreement, would get the $8,000 tax credit unless they purchased and closed on the home before December 1, 2009 (that date could always change). If the home is purchased before then, it’s just like any other purchase.

Until the home is purchased and the home loan is closed, it’s likely thought of as renting since it’s basically only an agreement between two parties to do something in the future. You might want to try an 8-month lease to buy if possible.