Question Details

Roger Spears, Both Buyer and Seller in Evans, GA

Lease purchase option offer from real estate investment company

Asked by Roger Spears, Evans, GA Wed May 21, 2008

I received an offer for a lease purchase option on my home from a real estate investment company. I haven't been able to find out a lot about the company (Dun and King real estate investments). Anyone gone this route on selling a home?

Help the community by answering this question:

Answers

5
A few quick comments:

I'm a real estate investor (also a Realtor, but that's a different "hat" I wear) who makes lease-option offers on homes. So, it's possible/probable I do the same thing as the company that's made you your offer.

Most such operations are very small, sometimes an LLC with just one or two members. Some are bigger--maybe half a dozen people. And most tend to be geographically local. For instance, I focus on Northern Virginia. That's it. Others will pretty much focus on properties within a 10-30 mile radius. That's not an absolute rule, just a generalization.

With that in mind, no I don't know Dun and King. To check them out, ask for several references. Ask for references from at least two other homeowners who've signed with Dun and King on a lease option. Ask, also, for several business references--say an accountant and a lawyer. Even one-person operations should have an accountant and a lawyer. And a real quick tip: Look at D&K's business card. Then log onto VisaPrint (http://www.VistaPrint.com). Do you see that card design there? Now, that's not a deal-killer. But most beginnng investors use VistaPrint, and they go with the standard card design. (Some go with the free cards that have the VistaPrint contact information on them.) I wouldn't go with anyone who's using the free VistaPrint cards. If they can't afford $25 for their own business cards, they probably won't be able to meet more significant financial obligations.

Take the documents that D&K have provided to a good real estate attorney for review. Now, let me caution you that even so-called "good" real estate attorneys may not have experience with lease-options. When I was getting my documents reviewed, I encountered several attorneys who weren't familiar with the concept, or had other odd issues. Oh, and if D&K won't allow an attorney review by you, don't go with them. Whenever I make an offer, I encourage them to have my documents reviewed by their attorney.

Properly done, a lease-option (and I'm guessing that D&K is actually proposing a so-called "sandwich" lease option) can be a win-win for all concerned. You, the owner, will receive a steady cash stream and (as they're usually structured) relief from the maintenance and repair headaches you'd run into as a landlord. If it's a sandwich lease option, D&K will receive a slight positive cash flow through the term of the lease-option and a more substantial payoff at sale. And the tenant-buyer will have the opportunity to purchase a house, clean up his/her credit, and amass option credits...something he/she couldn't have accomplished without a lease-option.

So: Be careful. Have a lawyer review the documents. Ask for references. But lease-options can be a good technique to sell your home when conventional methods haven't worked.

Hope that helps.
1 vote Thank Flag Link Wed May 21, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
I did receive thieir formal offer and lease agreement, which contained what seemed to be be fair terms. I declined as I was able to find a local buyer. I was never able to find out too much about the company except they are registered in Florida as of April 2008. I could not find any record of them in Georgia. I dealt with MS Dun who seemed pleasant but the fact that they were aout of state company without a track record that I could verify made me a bit leery. The FAQ's they provided said they could not disclose any prior customers names due to privacy concerns, so I couldn't check them for references. All that said, had I not found a local buyer, they would have got heavy consideration. Hope this helped and good luck.
0 votes Thank Flag Link Fri Jun 20, 2008
What, if anything has happened with your offer from Dun and King? I have also been given an offer from them? Did you go thru with it?
0 votes Thank Flag Link Thu Jun 19, 2008
I don't like a lease purchase. If they can't buy now, the likelyhood they will be able to in the future will be slim.
Web Reference: http://GetPrequalified.com
0 votes Thank Flag Link Wed May 21, 2008
Roger...

Sounds as if you are talking about a lease-option. I am hoping you are being represented by a professional Realtor. You would proceed just as if it were a sale or a rental. they sould provide you with a financial statement for you to check out i.e. credit report etc. Is the company doing the lease option or an individual? Good luck.
0 votes Thank Flag Link Wed May 21, 2008
Pam Winterba…, Real Estate Pro in Danville, VA
MVP'08
Contact
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer