Selling a Home Doesn’t Have to Be All or Nothing
If you’ve tried to sell your home but haven’t found the right buyer, or if you’re facing challenges like limited equity, high interest rates, or a slow market, you’re not alone. Many homeowners across the U.S. are realizing that the traditional “list it and wait” strategy isn’t always the best route.
That’s where a lease purchase program, also known as a rent-to-own home sale, comes in. It’s a creative selling strategy that lets you earn a steady income now while securing a future sale at a set price, without having to give up control of your property immediately.
At InvestaHaus, we specialize in helping homeowners understand and use strategies like lease purchase, seller financing, and subject-to sales. Let’s break down how a lease purchase really works, and why it may be the perfect bridge between renting and selling.
What Is a Lease Purchase Agreement?
A lease purchase program is a legal agreement that combines a lease (rental contract) and a purchase agreement into one. In this setup, a tenant-buyer leases the property for a specified period, typically 24 to 36 months, with the obligation to purchase it at the end of that term for a pre-agreed price.
Think of it as a “pathway to sale.” The buyer gets time to qualify for financing or save a larger down payment. Meanwhile, the seller benefits from steady rent payments and a locked-in future sale price.
It’s important to note that a lease purchase program is different from a lease option program. In a lease option, the tenant-buyer has the option (not the obligation) to buy. In a lease purchase, both parties are committed to the sale. This commitment makes it more predictable and secure for a seller.
Example: Maria’s Relocation Dilemma
Maria needed to move from Fort Lauderdale to Atlanta for a job, but couldn’t afford two mortgages. Her home had little equity, and the market was slow. InvestaHaus structured a lease purchase so Maria’s mortgage monthly payments were covered and move without stress. The tenant-buyer was already qualified, and InvestaHaus guaranteed the purchase. Maria sold at her full asking price 24 months later.
Why Lease Purchase Can Be a Win for Sellers
For many homeowners, a lease purchase solves real problems that the traditional market can’t. Here are the biggest advantages:
- Access to a Larger Pool of Buyers
Many capable, responsible buyers can’t qualify for a mortgage right now. Maybe they’re self-employed, recently changed jobs, or recovering from credit issues. Lease purchase allows you to sell to that 70% – 80% of buyers who are currently “non-bankable.” - Guaranteed Income and a Future Sale
You collect monthly rent throughout the lease term, or your mortgage payment is covered by us. And your home pricing and equity are secured in the terms agreed. - Less Maintenance and Hassle
Unlike regular renters, lease-purchase buyers will treat the house as their future home: they’re more likely to take care of it, handle minor repairs, and maintain the value. You still maintain ownership until closing, but you don’t carry the full burden of a landlord. - Potential for a Higher Sale Price
Because you’re offering flexible terms, you can often command a higher sale price, especially in markets where traditional buyers are scarce. You’re trading convenience and creativity for a premium. - Tax and Timing Flexibility
You can defer the full capital gains event until the final sale. This could well be a strategic advantage if you want to spread out your income or time your sale in a future financial year. (Always check with a tax advisor to confirm your benefits.)
The Risks and How to Protect Yourself
Every strategy involves some sort of trade-off. The key is to understand those and structure your deal correctly.
- Risk 1: The Buyer Doesn’t Complete the Purchase
In a traditional lease purchase, there’s always one lingering worry for the homeowner: what if the tenant-buyer doesn’t follow through with the purchase? It happens more often than many realize. At InvestaHaus, we’ve solved that problem. When you sell through our Lease Purchase Program, the purchase is guaranteed at the end of the term. - Risk 2: Poorly Written Contracts
The biggest mistake most homeowners make in trying to handle lease purchases themselves is either a vague or incomplete contract. Therefore, it’s best to work with professionals, preferably real estate attorneys or creative-finance experts such as InvestaHaus, to make sure that every term is clear: who maintains what, when payments are due, how credits apply, and what happens upon default.
When a Lease Purchase Makes Sense
A lease purchase can be the right move for you if:
- Need to sell but haven’t found a qualified buyer
- Have little to no equity and don’t want to bring money to closing
- Are tired of managing tenants but aren’t ready to sell at a discount
- Are you relocating but want to preserve your property’s value
- Want a monthly cash flow while you wait for your final sale
It may not be ideal if you need your cash immediately or if your property requires major renovations before move-in.
How a Lease Purchase Works Step-by-Step
- Determine the Sale Price
Typically, based on the current fair market value, or a small premium. Your profit is locked in, predetermined ahead of time, and will not change. - Set the Lease Term
This is usually 24–36 months, allowing buyers time to prepare for financing. - Define Responsibilities
We are 100% responsible for maintenance, repairs, taxes, etc. - Use a Professional Agreement
The lease and purchase agreement is handled by our attorney and title company.
Why Work with InvestaHaus
Traditional lease purchases leave sellers uncertain. At InvestaHaus, we solved that problem. When you sell through our Lease Purchase Program, the purchase is guaranteed.
That means:
- You have the security of knowing your home will sell at the end of the term.
- You still enjoy monthly income during the lease period.
- You avoid vacancy risk and maintenance stress.
InvestaHaus either completes the purchase directly or places a qualified buyer with financing in place before the term ends—ensuring your sale closes as promised.
Example: Robert’s No-Equity Home
Robert owed almost as much as his Jacksonville home was worth. A regular buyer couldn’t cover closing costs, and a short sale would ruin his credit. Listing it with a Realtor would have to come with money out of pocket. InvestaHaus structured a guaranteed lease purchase, took over payments, and finalized the sale within 24 months. Robert kept his credit intact and walked away debt-free.
Every home and seller is different, and that’s why we tailor each lease purchase strategy to your needs, combining financial logic with real-world experience.
Ready to Explore the Lease Purchase Option?
If you’re wondering whether a lease purchase could work for your home, InvestaHaus can help you understand the numbers, risks, and potential profit before making any commitments.
Let’s talk about your property and your objectives.
Request a free creative-sale consultation at Investahaus.com/contact, and find out how to sell smarter, not just faster.
FREQUENTLY ASK QUESTIONS | FQA
What is a lease purchase agreement and how does it work?
A lease purchase agreement is a legal contract combining a lease and a purchase agreement, where a tenant-buyer leases the property for a set period, typically 24 to 36 months, with the obligation to buy it at the end for a pre-agreed price, providing a pathway to sale.
How does a lease purchase differ from a lease option?
In a lease purchase, both parties are committed to the sale, making it more secure for the seller, whereas in a lease option, the tenant-buyer has the option, but not the obligation, to buy the property.
What are the main benefits of using a lease purchase for sellers?
A lease purchase allows sellers to access a larger pool of buyers, guarantees income and a future sale, reduces maintenance hassles, potentially commands a higher sale price, and offers tax and timing flexibility.
What risks are associated with lease purchase agreements and how can they be mitigated?
The main risks include the buyer not completing the purchase and poorly written contracts; these can be mitigated by ensuring the purchase is guaranteed at the end of the term and working with real estate professionals to draft clear, comprehensive agreements.
When is a lease purchase an appropriate strategy for homeowners?
A lease purchase is suitable if you need to sell but haven’t found a qualified buyer, have little or no equity, want to avoid managing tenants, are relocating but wish to preserve property value, or want a steady income while waiting to sell.
Some other articles: “Benefits of lease purchase for homeowners” → HAR.com article