How it works
Our investor group will typically have several homes available in the middle Tennessee area. A prospective buyer calls our office for a listing of available properties to look at. After they look at the outside of the property and are interested, they call to set up a time to see the inside. When they are ready to purchase, they simply fill out the one page application, bring a cashier’s check or cash for the down payment, along with a photo copy of their driver’s license and social security card (if they have one), sign the Agreement, have it notarized and move in.
The process is very quick and simple, there are no hidden fees or fine print.
The houses are sold ‘AS IS’ so some of them will need painting, carpet cleaning, or minor repairs.
The down payment will vary depending on the home and our acquisition costs.
The contract is a Lease with 20 Year Option to Purchase, amortized for 30 years, just like a bank mortgage. The Option to purchase must be exercised in 20 years. You can get financing through a typical lender and pay off the balance of your loan to the seller at any time during that 20 years with no penalty. You can upgrade, renovate, or add on to the home whenever you like, in accordance with city and county codes thereby increasing the value of the home, and then you can resell the home at a higher price, to another buyer who gets their own financing at any time. You simply pay off your balance to the seller and keep the capital gains.
Similar to purchasing a vehicle with financing. It is your vehicle, or your home, for as long as you make the payments. The lender cannot just decide to change the deal and take the car, or the home back. You have, in legal terms ‘equitable title’, which means that as long as you make the payments and do not violate the terms and conditions of the agreement, the home is yours. You have a 20 year Option on the property and can ‘close’ the deal whenever you choose. You receive legal title to the home when it is paid for in full, just like with a vehicle.
