Lease Option Explained


How Does Selling My Property with Terms Work?
Why are these fast becoming the Sellers’ 1st CHOICE When Selling Their Home?

I find myself answering these questions daily so below is a summary of why selling your home with terms might be your best option. My name is Claudia Dill. I am a 24-year resident of Tucson and have been a real estate investor for 18+ years. I currently invest throughout Arizona and am the Arizona Associate of National Property Team, a small investor group that buys 5-10 homes per month.

The market is constantly changing and in order to get Top Dollar for your property, you sometimes have to change with it and be aware of your options.

Approximately 82% of the market cannot qualify today for financing. That is a national number that is not improving. Some have had life events that have dinged their credit. Others needs seasoning as self-employed business owners or new-hires. And yet another group of buyers with good credit are looking for a way to buy their dream home now while they save more and increase their equity in the home instead of just renting while they save. If you are selling with a Realtor or For Sale By Owner, you are only marketing to +/-18% of the market. A smaller pool of buyers will obviously produce a lower price.

We can buy homes for all cash with a quick close but that is typically at a discount for distressed properties or other challenged situations.

For a property that is in great shape (which is 95% of what we purchase), we buy it via owner financing or lease/option (depending upon your underlying mortgage, if any) as well as other structures. Both of these primary formats have short term cash-outs for you, usually at or above Fair Market Value. When we meet, we can decide the best purchase choice for you. If you own the house free and clear, we can often pay a premium above market value!

We are NOT Realtors offering a service and you will NOT pay us any fees or commissions. We are buyers. Many think these types of purchases are only for low-end homes or distressed sales. While there are some instances where we may buy those homes, we actually handle homes from $150,000 up to the high hundreds +. Under the “Our Properties” tab, you’ll find some recent deals we’ve done with seller comments as well as our A+ accreditation with the Better Business Bureau.

The lease option means we are 100% responsible for maintenance, repairs, taxes, and other expenses after 30 days of occupancy. The only thing you’re responsible for is your insurance if it’s not escrowed in your mortgage payment (or if you don’t have a mortgage) and it will change from a home owners’ policy to a simple landlord policy which will usually reduce your costs slightly. If your insurance and taxes are currently escrowed, the monthly lease will cover them. Your profit is usually predetermined ahead of time so you know what to expect at the time of financing and cash-out.

Who is this not a fit for?
This is not a fit for anyone who has equity in the home that they need NOW to buy another home. It will still work but you would have to refinance, pull out the cash needed and then secure a lease/option with us to cover the new underlying mortgage.

What if I still have my loan and want to get another mortgage to buy another home?
Banks and mortgage companies vary on this and you should shop around. We’ve seen them count your lease payment anywhere from 75%-100%. For example, if your mortgage payment is $1000 and you are collecting $1000 on your lease and they are only counting 75%, you will be credited for $750 monthly income as far as your debt to income qualifying ratio. That means you have $250 net debt. If they count 100% of your lease income, it’s break-even and will not at all affect that aspect of your application for a loan.


  • Top sales price, retaining your equity
  • Stops the money hemorrhage of mortgage payments if applicable.
  • All maintenance is our responsibility.
  • You still enjoy tax advantages of the depreciation if applicable.
  • No advertising dollars out of your pocket.
  • No fees out of your pocket.
  • We don’t care what kind of mortgage you have.

We hope this brief overview of our well-established system for buying houses via “Terms” has been helpful to you. We invite questions and more detailed discussion with you.


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Specializing in Rent to Own Homes in Arizona

Pickle Property Solutions



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