Lease Purchase Program Information
[Information for Homeowners who are interested in Renting their property]
{{PLEASE NOTE: During this bad time in our economy, we can ONLY
work with and do Lease Purchases with owners who understand this
economy. Owners who can take $3,000 or $4,000
or less down payment AND, owners who can take the down payment
over time. If you are not one of these owners then please do not waste
your time reading on. Please click on our Rental Program Information.
We would be willing to work with you under that program. We tell you
this as to not waste your time!!}}
{{Owners, we have 3 documents contained in our lease purchase documents. We would be happy to send you the monthly lease that tenant/buyer(s) need to sign. Please understand that we CANNOT GIVE OUT OUR LEASE PURCHASE CONTRACTS TO REVIEW, for obvious reasons. We are in this business not only to help our clients and customers, but to also make money and we have put together our Lease Purchase Program and have paid a good deal of money to have our special contracts written by our attorneys. Not saying that you would but, we have had this to happen in the past, people to take our contracts and use them without our permission or without our involvement. Therefor we cannot give them out for people to possibly use without using our company! I am sorry. We are willing to allow our Lease Purchase/Lease to be viewed. If/when an owner is interested in our program we go over the contracts thoroughly if interested in entering into contract with tenant/buyers. You will also have time to have your attorney view our contracts before entering into an agreement, with tenant/buyers or our company! Thank you in advance for understanding!
Hello Home Owner(s),
Thank you for visiting our website for more information on our Lease Purchase Program. This email will
explain our program in a little more detail as it relates to working with owners who are
interested in having our company place Lease Purchase Tenant/Buyer(s) in their property for them.
We would like to explain how our Lease Purchase Program works, and how these
programs are helping Homeowners, Realtors, Investors, Tired Landlords, etc, to lease purchase and sell their properties RIGHT AWAY!!
First, let me tell you that there are a lot of scam artists out there now, with unemployment and
foreclosures so high and continuing to rise. We have been in business for over 7 years. We are
licensed and listed with the GA Better Business Bureau since 2005, with no complaints since our
company opened, and we are listed with the Secretary Of State. Rating an A- with the GA Better Business Bureau, with an A being the highest
a company can receive. The only reason we do not have an A is, at this time we are not a member
of the Bureau. We will be again very shortly. We welcome you checking with the GA BBB and Secretary Of State
concerning our company. Please check out our rating, that is very important and we are proud of it!
You can check by using our company name
{A. D. Barnes An Investment Management Company} or, our Office Phone number {770-575-1691}.
We work with Homeowners in and out of state. We do have references of all owners we are
currently working with and we are willing to give you some of these owners phone numbers to contact
them. We will also give you the address of the property that these homeowners own, so you
can check the owner's name against the courthouse records. We want you to feel comfortable
and assured of our ethics and professionalism when working with our company.
We are NOT REAL ESTATE BROKERS OR AGENTS! We do have a Real Estate Broker within our staff.
We are a Real Estate Investment Service, a Lease Purchase Tenant/Buyer
Placement and Advertising Service. We are also a Full Service Property Management Company. Even
though we are not real estate agents or brokers, we can legally do Lease Purchase Set Up and,
(when/if needed), Property Management because we would do a Flex Option Agreement with
the owner and assign the Lease Purchase Agreement to the actual
Tenant/Buyer(s). This would make us a principal
of the transaction not a broker. We do have GA Real Estate Attorneys on retainer and they help
with all of our contracts, that way everything is legal and in accordance with GA Law. We also ask that you have all contracts
viewed by your GA Real Estate attorneys if/when we do business.
Our Flex Option Agreement that the owner would sign going in, is a simple two page agreement
that gives our company permission to advertise the property and to send potential lease purchase
tenant/Buyer(s) out to view your property, the agreement also states the terms as far as the
monthly rental amount, the purchase price, the down payment amount and, the fees that our company will receive. This
agreement is then assigned to the tenant/buyer(s). Again, this way our company is working as a
principal, not as a Broker. This simple agreement ties into the actual Lease Purchase lease and contracts
that would be signed later by the owner and the tenant/buyer(s) (once
they are approved).
{Please remember it is easier and faster to Rent a Property than to Lease Purchase but, you are selling your home at a later date with a Lease Purchase!}
Either way we do all the work for you, finding and placing the Tenant/Buyer(s), handling the application and
screening process, we do all the lease purchase contracts and paperwork, we handle the actual
Move-In and, offer Full Service Property Management (if/when needed). If our company manages the property, we also
handle the showings [BY WAY OF USING AN OWNER PURCHASED LOCKBOX]. At this time all properties that we are showing are on LOCKBOX, THAT IS OUR PREFERRED WAY OF SHOWING HOMES!! The prices of the homes that we are currently showing range from $90,000 up to 525,000. This way of showing homes has kept the cost down for owners, has proven to be safe (we get the driver's license number and birth date of everyone who will view the properties), and as stated before, this is our preferred way of showing homes. To give a code out to a potential tenant, we get a copy of their Driver's license, we give a 2 hour window schedule for them to see the property AND, they have to call us back when finished viewing, to let us know that they have secured the property and put the key back in the lock box. All of this is included in our fee (except the Lockbox). So you just sit back and
get ready to receive payments.
Our Fees for Lease Purchase are not A) 1.5% of the Purchase Price for the Move In, (for Lease Purchase we just charge the owner 1 full months rent at Move-In), B) Our Monthly Management fees do not change and become higher than 13 to 15% because it would be a Lease Purchase, (we charge the owner the same as with rentals, 10% or $100,WHICHEVER IS GREATER), AND, C) We do not charge 5 to 7% when a lease purchase closes at the end of the term, (we charge the owner a 2.5% advertising fee when the lease purchase closes at the end of the tenant/buyer(s) lease purchase terms end).
If the owner has Monthly Management, the owners do not have to even deal with tenants and toilets!
We keep that headache off of you the owner! For Lease Purchase, you sit back and receive a non-refundable
down payment, and your monthly rent, while having your mortgage paid down for you by someone else. You would decrease
your tax liability with lease purchase, by turning short term capital gain into long term capital gain, (having a lower tax rate) and,
you would sell your property at a Good Purchase Price with future Price Ranges at a later date. Not for what you would have to sell it for now in today's market, with housing prices dropping!!
Also, working with our company, we would handle both sides of your transaction, the listing side and the buying side. This way we are able to keep your OUT OF POCKET costs down.
When working with a Real Estate Agent, you (the owner), would pay 2 agent(s)/broker(s) anywhere between 6% or 7% for both sides. Not with A. D. Barnes (for both sides you only pay 2.5%)!!
The Tenant/Buyer(s) that come to us
are wanting us to find good properties for them and to find owners that will work with them. They also are told and understand that we are working as a principal in the transaction but, that we are writing the contracts for the owners! We work with and help
tenant/buyer(s) get started with credit counseling to ensure them closing on the property at the end of the lease purchase term.
Our Flex Option Agreement when signed would state that the owner is working Exclusively with
A. D. Barnes, to find and place Lease Purchase tenant/buyer(s) for 60 days! Our company incurs costs to
advertise an owners property, to pay our staff to call and schedule appointments setting up
showings, to take applications, screening tenant/buyer(s), etc,. We know that owners can
understand these costs and not mind giving us a 60 day exclusive agreement to place
tenant/buyer(s) and, have no problem paying the low costs of our services, as we are doing all of this initially free to the owner upfront, until we
actually approve and place tenant/buyer(s) in the property. Of course it does not usually take 60 days to
place tenant/buyer(s) but, we are expending money to do this and would like some time to get the process started and completed.
Here is a bit more information and some answers to questions concerning how we handle Lease Purchases:
1. Whose name would go on the Lease Purchase Contracts:
Since we would do a direct lease purchase (between the Owner and the Tenant/Buyer(s)), the owner's names would go on the contract and
also the tenant/buyer(s) names would go on the contracts Tthe Flex Option Agreement assigns rights to the tenant/buyer(s) to become the tenant/buyer(s) of contract.
2. Who would actually live in the Property:
A. D. Barnes, would place Qualified Tenant/Buyer(s) into the property to live and at terms
end the tenant/buyer(s) would ultimately purchase the property.
3. Who would be responsible for the property:
The tenant/buyer(s) would live in the property, make timely monthly payments, handle the upkeep of the house and the grounds on a daily basis, ultimately being responsible to the owners.
The tenant/buyer(s) would also be responsible for the payment of maintenance and repairs (up to $150.00) per month any given month.
4. The Lease Purchase Down Payment:
In view of the housing market and the economy, A. D. Barnes is looking for Owners who can
understand these problems and are not looking for inflated down payments, (times are different from when you could get $9,000, $10,000 and upward to $15,000 and more for a lease purchase down payment). We try to be realistic when it comes to lease purchase down payments. Think about it like this, if your home is not selling and, A) you are living in
the property and making the monthly payments is hard, you do not want to go into foreclosure,
Or, B) you have moved out of the property and are having to make double payments,
(one on this property and one where you are now living),Or, C) you are going through
a situation and really need to sell now to get out from under the monthly payments
Or, D) you are an investor and would like to lease purchase your property ASAP,
Or, E) other situations. Right now, you are just interested in getting the monthly
payments paid on the property! Don't let receiving a high lease purchase down payment keep you from moving your property!
The lease purchase down payments received from Tenant/Buyer(s) are non-refundable if
the tenant/buyer(s) do not purchase the home at the end of the term, (or if they move out before terms end). At this time all of the owners that
we are working with under our program, are accepting from $3,000 up to a maximum of
$3,500, (because we do have to add the company side of the down payment) and, they are willing to receive their down payment through our lease purchase
installment program, where the down payments are spread out and paid certain months
throughout a time period and the owner will still receive their full
down payment!
Yes, A. D. Barnes is also in this business to make money but, our program is
also geared to help our clients to rent/(with a possible conversion to lease purchase or start out lease purchasing and sell their homes and, to help people/families STOP RENTING
AND ULTIMATELY PURCHASE AND OWN! So we are willing to give the tenant/buyer(s)
time to make their down payments. Most people want to lease purchase rather than rent but in this economy it is hard to come up with so much money at one time. They simply do not have all of the down payment plus one full months rent all at one time, but given time they can pay it all!
Tenant/Buyers also take better care of your home because they will one day be the proud
owners of that home! **(PLACED IN CONTRACTS)
5. The Purchase Price:
Again considering the housing Market and how it is unstable at this time and, the uncertainty of
it in years to come. What we have been doing with owners (for the past year), is placing a set
purchase price but, also adding something else in the contracts to protect both the homeowner
and the tenant/buyer(s). This is something that will work for everyone down the road if the
property does not Appraise out. **(PLACED IN CONTRACTS)
6. Maintenance and Repairs:
As stated in paragraph 3, the Tenant/Buyer(s) will be responsible to the owners for the full
upkeep of the property on a daily basis. As for the payment of any maintenance work and/or
repairs, the tenant/buyer(s) will pay up to $150.00 per any given month that maintenance and repairs
are needed, this is excluding major systems such as Plumbing, Heating/A/C, Hot Water Heaters and
Roofing for the 1st 60 days. If associated with fault of tenant/buyer(s), their family or guests,
then of course this would not apply. The repairs would then be paid for fully by the
tenant/buyer(s).
Because an owner is still in possession of the property, (having full ownership) of the property,
and still claiming taxes on the property, the owner is still responsible for maintenance and repairs (outside of the $150.00 the tenant/buyer(s) are responsible for monthly).
If property is managed by A. D. Barnes, all maintenance and repairs would be done by
the owner's home warranty contractors (if owner has a policy) or by A. D. Barnes licensed and
bonded contractors who guarantee their work. If managed by the owner the work would be done by owners contractors. Who does the maintenance and repairs would be
entirely up to the owner. A. D. Barnes' contractors would still be available to the owners if needed.
**(PLACED IN CONTRACTS)
7. In case Foreclosure proceedings start: [FYI information]
FORECLOSURE PROCEEDINGS: Management is not liable if Owner goes into Foreclosure.
[[If for any reason an Owner goes into Foreclosure under a Lease Purchase Agreement:
1) Management will not be liable in any way, to the Owner or the Tenant/Buyer(s) in the case of
a foreclosure, 2) Management will immediately terminate any property management agreement
with owner, because at that time Management will not be able to continue to effectively provide
leasing and/or Management services to the Owner or the Tenant/buyer(s) under the GA Law. At any time during a
foreclosure period, if any type of legal ramifications are waged against an Owner by the
tenant/buyer(s) for not informing them or A. D. Barnes of a future foreclosure, Owner releases
A. D. Barnes An Investment Management Company LLC and their associates from any liability in the
case regarding the foreclosure. A. D. Barnes An Investment Management Company LLC is a Property
Management Company and are not the owners of said property.]] 3) Owners would then be liable
for payment due to the property management company, [This is something that would be fully
discussed if/when owners became interested in working within A. D. Barnes' lease purchase program.
{{Owners by law, are required to immediately inform their Management or A. D. Barnes Company and/or their
Tenant/Buyer(s) of a pending Foreclosure at any time a NOTICE OF DEFAULT is issued from
Owner's Lender.}} Please Owners, notify everyone involved at any onset of a Foreclosure,
so as not to have any other lawsuits pending, pertaining to GA Law Foreclosure and notices
to parties involved!
8. Property Showings/Lock Boxes and Signs:
Owners would pay for a lock box to be placed on the property's door for Showings.
A. D. Barnes will receive from all potential tenant/buyer(s) that go to view any properties,
a driver's license number that is checked for validity before giving the code to view properties. Also,
the potential tenant/buyer(s) would have to give a specific time that they will be viewing the
property and, would have to call A. D. Barnes after viewing, to make sure the property is secured and
that the keys are placed back in the lock box.
Owners would initially also pay for the sign that would be placed in the property's yard ($49.00).
At Move-In/After payment has been received, A. D. Barnes would refund the money for the sign back to the owner.
This is done because in the past we have had owners to place the property under our program and then come back to state
that they needed to move back into the house, that they are needing to move family back into the house,
or a host of other situations. A. D. Barnes then has to pay to have the signs removed and we are
just not willing to incur that extra cost upfront, on top of our other costs to advertise an Owners property for FREE!
We will, within 48 hours after the Move-In and after cashing move in money orders, reimburse the full sign payment. Owners
understand this and if they are serious about Lease Purchasing their property they know that
there are some small upfront costs. We have not had any problems or concerns with Signs or Lock boxes.
9. Property in "Ready for Showing" Condition:
Owner's property must be in Ready for Show Condition. A. D. Barnes cannot have
tenant/buyer(s) go to view properties that are not in showing condition. If an owner needs
help as far as turnkey work to make the property ready for show please ask your contact person. We
do offer turnkey services such as cleaning, painting, plumbing, roofing, repairs, lawn care, renovations and other contracting
services, at discounted prices to all new and existing clients.
These are the basic facts concerning working with us to Lease Purchase home(s).
I hope that this has given you more in depth information on the workings of our
Program. We like to give as much information upfront, answer any questions, and discuss
everything before spending a lot of time viewing properties, doing due diligence and sending
tenant/buyer(s) out to view properties. This cuts down on wasting an owner's time,
tenant/buyer(s) time, and our time. Certain things as stated above we cannot afford to
negotiate on, so we like to know up front who we will be able to work with.
Here are some great reasons to consider A. D. Barnes' Lease Purchase Program:
* Debt Relief
* Quick / Immediate Solution
* Purchase Offer Price based on Future Pricing
* With the economy and the Real Estate market in a slump, you the
owner can get more for your home by selling 18 months to 2 years
later as opposed to selling now FOR LESS
* Mortgage Principal Reduction
* Opportunity for significant increase in total income
* Owner retains all property tax benefits
* Owner may qualify for additional tax deductions -- Including
improvements & repairs
* Could decrease tax liability by turning short term capital gain into
long term capital gain (lower tax rate)
* No property management or maintenance headaches - We handle
all property management and maintenance [if interested]
* Pay down your Mortgage with the Tenant/Buyer(s) Monthly Checks!!
We would be happy to discuss lease purchasing your property, and answering any questions
you may have concerning our format of Lease Option Purchasing. If after reading this information and
speaking, if you are interested, we could get started right away. We start by gathering information
about the property, viewing the property, and doing our due diligence to see which properties we
would be interested in placing in our Lease Purchase Program and, having signed a simple
Flex Option Agreement.
Please email us back at your earliest convenience if you have any questions, or are interested in speaking about the program and we will give you a call. Thank you so much
for your time and patience!
Have a great day!
