Also known as Rent to Own or Lease Option, a Lease Purchase is a financial arrangement that combines Residential Lease with a Purchase Agreement.
Property ownership has become the pinnacle of real estate investment. As a result, business owners are seeking ways to purchase properties. One of the solutions is a lease purchase option. Lease purchase options allow business owners an opportunity to buy the property at some point in the future. This combines the security of a long-term lease with the ability to build equity through property ownership if the business warrants this type of infrastructure investment
You’re leasing a house with an option to buy it at any time during the lease term for the price set upfront. Each month, part of your rent goes towards the purchase - RENT CREDIT (you're not throwing your hard earned money away anymore, you’re building equity!)
In most cases, the down payment is ONLY 5%, and it is called “Option Consideration.”