There’s a different way to look at financing for real estate that you may not have considered. Zachary Beach, a real estate coach and the COO of Smart Real Estate Coach, breaks down all things lease purchase agreements and when they might be a good fit for a buyer and seller. Listen in to hear Zach share how they make sure lease purchase agreements are successful, how they saved a buyer when traditional financing fell through, and how he used one for his own very first property.
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Time Stamped Show Notes:
- 01:00 - Introducing Zachary, a real estate coach and the COO of Smart Real Estate Coach who lives in Rhode Island
- 03:15 - He was a bartender and personal trainer out of college; his father-in-law was an investor and helped him after he got burnt out from what he was doing
- 04:10 - He’s been in real estate for over six years and now has a coaching business, too
- 04:40 - He’s only been involved in creative financing; he doesn’t know why the traditional route of financing can be so complicated
- 05:45 - How he breaks down lease purchases
- 06:05 - They ensure buyers and sellers are successful in the transaction, which isn’t always the case; they have a high conversion rate
- 06:50 - They have systems and processes to make sure people are successful; the options they offer usually work unless you need your property’s equity immediately
- 08:55 - On owners getting “locked-in” to a lower price through a lease purchase agreement
- 09:10 - No one knows what the market is going to do; he offers a solution and recognizes that it’s not a good option for everyone
- 11:00 - ⅓ of properties in the US are free and clear; so that is a great market for a lease purchase agreement
- 12:15 - These types of agreements can work with buyers who don’t have perfect credit, need seasoning, or have other factors impacting their ability to buy today
- 12:40 - Zach bought his first house on a lease purchase agreement
- 13:25 - On changing bank regulations
- 14:00 - The bank changed regulations to qualify for a property at the last minute and a guy that had 20% down, 750 credit score, and 6 months of reserves lost a traditional deal
- 14:15 - They fixed the situation with a lease purchase agreement and all he needed was 6-12 months to build up his reserves so he could get a loan
- 15:55 - How to find Zachary: go to www.smartrealestatecoach.com/webinar and get their free book
3 Key Points
- Make sure you’re working with someone who cares to see your success.
- Lease purchase agreements can be a creative way to own a home down the road.
- Lease agreements aren’t always the solution.