236 - Lease Purchase Agreements Explained with Zachary Beach

There’s a different way to look at financing for real estate that
you may not have considered. Zachary Beach, a real estate coach
and the COO of Smart Real Estate Coach, breaks down all things
lease purchase agreements and when they might be a good fit for a
buyer and seller. Listen in to hear Zach share how they make sure
lease purchase agreements are successful, how they saved a buyer
when traditional financing fell through, and how he used one for
his own very first property.


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Time Stamped Show Notes:


01:00 - Introducing Zachary, a real estate coach and the COO
of Smart Real Estate Coach who lives in Rhode Island

03:15 - He was a bartender and personal trainer out of
college; his father-in-law was an investor and helped him
after he got burnt out from what he was doing

04:10 - He’s been in real estate for over six years and
now has a coaching business, too

04:40 - He’s only been involved in creative financing; he
doesn’t know why the traditional route of financing can be so
complicated



05:45 - How he breaks down lease purchases

06:05 - They ensure buyers and sellers are successful in
the transaction, which isn’t always the case; they have a
high conversion rate

06:50 - They have systems and processes to make sure
people are successful; the options they offer usually work
unless you need your property’s equity immediately



08:55 - On owners getting “locked-in” to a lower price
through a lease purchase agreement

09:10 - No one knows what the market is going to do; he
offers a solution and recognizes that it’s not a good option
for everyone

11:00 - ⅓ of properties in the US are free and clear; so
that is a great market for a lease purchase agreement

12:15 - These types of agreements can work with buyers
who don’t have perfect credit, need seasoning, or have other
factors impacting their ability to buy today

12:40 - Zach bought his first house on a lease purchase
agreement



13:25 - On changing bank regulations

14:00 - The bank changed regulations to qualify for a
property at the last minute and a guy that had 20% down, 750
credit score, and 6 months of reserves lost a traditional
deal

14:15 - They fixed the situation with a lease purchase
agreement and all he needed was 6-12 months to build up his
reserves so he could get a loan



15:55 - How to find Zachary: go to
www.smartrealestatecoach.com/webinar and get their free book



3 Key Points
Make sure you’re working with someone who cares to see your
success. Lease purchase agreements can be a creative way to own a
home down the road. Lease agreements aren’t always the solution.