Lease Purchase

If you are looking to purchase a building or property for your business, but haven’t got the cash or credit, or even just don’t like to deal with banks, consider a lease purchase. Business leader Phil Thow says a lease purchase may be a great way to obtain property under very flexible and beneficial conditions. It’s a great option that may be available to you and should be looked at closely. In this tough economic climate Phil Thow says a lease purchase can provide great benefits to the buyer and seller.

The key to finding a lease purchase situation involves interfacing with the right landlord. With the condition of banks these days, it may be prudent for both parties to come up with a contract that serves the future goals of both the buyer and seller without the presence of a bank or similar lending institution. Phil Thow suggests a mutually beneficial situation where the seller and buyer agree to have a lease on a property for set amount of time, like any lease would be, with the proviso that at the end of that term the buyer has the option to purchase the property at an agreed upon price.

The seller has the option of actually holding the paper, or Seattle Washington Mortgage at an agreed upon rate of interest. The title of the property can be held by a title company or by the seller. Usually the seller will have title insurance to protect him/herself against default. The fees of which can be paid by the buyer if so negotiated. The truly nice aspect of this lease purchase situation is that because it is an agreement between two individuals, or maybe two small companies, the terms can be flexible and changed somewhat at will depending on circumstances. Phil Thow recommends reviewing the both the buyers and sellers situation regularly and making any changes as they come up. Try doing that with a bank!

Lease purchase options may not be for everybody, but they certainly are a viable option for certain situations and can be really mutually beneficial. It is important that the buyer and seller agree on every aspect of the lease purchase agreement and are comfortable with each other. Phil Thow suggests having separate Philadelphia estate attorneys, and that all documents be reviewed by those lawyers so everyone’s interests are well protected, leaving little room for adverse misunderstandings of relevant positions.