236 - Lease Purchase Agreements Explained with Zachary Beach
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. Please subscribe to this podcast in iTunes or in the Podcasts App on your phone, and never miss a beat from Leigh by visiting https://leighbrown.com. If you’re tired of doing real estate alone, enroll in Leigh Brown University and be sure to use your special “CSIRE” discount code at checkout for $10 off your subscription. 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.