Thinking outside the box

I met with a nice couple today who are interested in a Lease/Purchase. As an investor, you cannot rule out any oppurtunity to put people and houses together. This nice couple had unusual circumstances that made it necessary for them to quickly find a house between 1900 and 2400 sq. ft. to lease purchase. The typical reasons why someone would want to lease purchase rather than buy might be lack sufficient funds for Down Payment and Closing Costs. In this economic climate where 100% financing is only available for people with credit scores over 720, many people cannot afford to buy a house. The Lender may require 5% down. On an average $150,000 house, that is $7500 plus around $5000 closing costs. That is $12,500 after tax dollars that would be paid at closing. With a lease purchase, that same individual may only have to pay $3000 deposit and pay the seller lease payments of $1300/ month or so. Also, the purchaser saves by not having to pay PMI, purchase money insurance. Lease/Purchase deals can be a win/win for the buyer and seller.