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   Homes For Rent         Lease Purchases         Seller-Financed Homes For Sale   

Specializing in nice Rental Homes, Lease Purchases & Seller Financed Homes

Phone (480) 782-8393 to see a home

9:00am to 9:00pm ~ 7 days / week



Purchasing Programs Outlined


Lease Purchase (Lease Option)

 

For a Lease Purchase, a home is leased (rented) with an Option (contractual right) to purchase the home according to specific terms as outlined in an Option To Purchase contract.

  • Purchase Price - The price of the home is usually set (locked in) for a period of 1 to 3 years. Sometimes, especially for an extended term (5 or more years), the sales price might be determined as the higher of the set price or the appraised value of the property at the time of purchase.

  • Option Fee - The Option Fee is a small, non-refundable down payment that applies 100% toward the purchase of the home & is credited at the time of Purchase.  The Buyer pays the Option Fee to demonstrate good faith that they seriously intend to buy the home.  Riverdale Estates LLC offerings always credit 100% of the Option Fee toward the purchase of the home.  (Other sellers sometimes 'pocket' some or all of the Option Fee allowing little no credit toward the purchase.)

  • Rent - The monthly rent amount is set forth in the Rental Agreement (lease).  The Option contract indicates whether any portion of the rent is to be applied toward the Purchase.  Riverdale Estates LLC will offer a contract either to: 1) credit a portion of the monthly rent toward the purchase if the Buyer plans to qualify for conventional financing, or 2) guarantee Seller Financing after 1 to 3 years of timely rent payments when the Buyer prefers to take advantage of Guaranteed Seller Financing offered.

  • Term (Lease Purchase Period) - The length of the Lease Option Period is usually 1 to 3 years.  It is formulated to suit each Buyer's circumstances in order to create a successful purchase.  For example, if the Guaranteed Seller Financing is the lending source, a 2-year Lease Option Period is usually adequate to 'season in' the pay history where no additional down payment is required.  Or, if the Buyer intends to qualify for conventional financing, the Lease Option Period might require more time to accumulate rent credits for the down payment & closing costs or for credit to repair.

  • Exercising the Option (Purchasing) - The Buyer informs the Seller when the Buyer is ready to exercise (activate) the Option to Purchase the home.  If Guaranteed Seller Financing is the lending source, the house payment will be equal to the monthly rent amount & the closing can be planned quite easily.

  • Other Costs - During the Lease Purchase Period, the Landlord/Seller usually pays for tax, insurance & HOA dues.  After the Purchase, the Buyer is responsible for these costs, but has the benefit of gaining appreciation (increasing property value) & can claim the tax deductions for the mortgage interest & property tax.  If sales tax was required on the rent payments, it will drop off after the Seller Financing begins.


Seller Financing (Buy with No Qualifying)

 

Seller Financing is when the Seller carries (holds) a mortgage for the Buyer rather than a bank.  Seller Financing is also referred to as Owner Will Carry (OWC) or Seller Carryback.  

 

For the Seller Financing offered on this web site, the Buyer is required down payment & be able to prove income adequate to make the monthly house payment.  While good credit is a great asset to have, it is NOT a requirement for the Seller Financing program.

 

Riverdale Estates LLC advertises properties from time to time with favorable Seller Financing with a small down payment required.

 

There are 2 programs often advertised by Riverdale Estates LLC for purchasing a home using Seller Financing (details may vary per property & Buyer circumstances):

  • Lease Purchase a home with a small Option Fee or Down Payment.  After 2 years or so of timely rent payments, convert over to Seller Financing with no additional down payment 

  • Buy with Seller Financing.   Pay the relatively low down payment required & enter directly into a purchase with Seller Financing arrangements provided by the Seller.

Seller Financing is an excellent opportunity for a Buyer that:

  • Cannot qualify for a conventional mortgage because of credit issues, self-employment, and the like.

  • Is ready to buy but hasn't saved up the down payment & closing costs

  • Wants to avoid the additional monthly expense of Private Mortgage Insurance (PMI) associated with low-down-payment mortgages

  • Wants a lower monthly payment than available from hard money lenders

  • On a luxury home, wants to avoid the extra expense & hassle of a conventional Jumbo Mortgage (mortgages over $417,000 usually have higher interest & more difficult qualifying standards)

  • Wants to refinance later after first making improvements to the property (avoids paying closing costs twice)

  • Doesn't want a mortgage account to show up in their name because of reasons such as maintaining privacy or avoiding attachment of outstanding liens

Simply apply for the home of your choice & we will help work out the best arrangement for your needs.

 


Outright Purchase (make an Offer)

 

Any property that Riverdale Estates LLC advertises for sale can be purchased outright.  All offers will be considered.  Make an appointment to meet at the property, discuss possible terms, & reach an agreement.  Or, the Buyer can write up their own offer & fax or email it to Riverdale Estates LLC.  If a Realtor® plans to present an offer on behalf of the Buyer for an outright purchase, please call in advance to inquire about a Realtor® commission.

 


Rent To Own

 

If Riverdale Estates LLC offers or negotiates a rent-to-own plan, it will be designed to remain stable and have understandable terms that are designed to succeed long term for all parties.

 

That said, Rent To Own plans offered elsewhere are often designed to fail while putting high demands on the Tenant.  A typical deal would involve a Tenant paying high rent & being responsible for repairs for a 30-year period & then having the deed for the property signed over to them.  It sounds pretty good, but in our years of experience, we have not heard of one deal that actually completed a Rent To Own purchase or even one that still had a long-term Tenant remaining.  

 

The landlord typically enters into this arrangement not expecting the Tenant to actually purchase the home, but rather to avoid having to think about repairs while collecting the rent & taking the tax deductions.  The Tenant enters into this arrangement believing that in 30 years the home ownership will be free, while one late payment will typically void the deal.

 


Use Caution

 

Especially in this unusual real estate market, when working with others, be sure that you know who you are working with BEFORE entering into a Rental Agreement, Lease Purchase, or Sales Contract with Seller Financing.  Ask plenty of questions.  For example, what protects you in the event the seller/landlord dies without estate planning or doesn't pay underlying obligations or isn't the owner of record for the property you are considering or is upside on an underlying mortgage?  We have seen too many of these types of problems hurt unsuspecting people.

 

Using a Realtor®

 

Riverdale Estates LLC is not a Realtor® & therefore does not charge or collect a commission.  A Realtor® is NOT REQUIRED for writing up a sales contract or an Option To Purchase agreement.  We have found that few Realtors® are experienced in working with Seller Financing & real estate brokers often won't allow it.  Also, a Realtor® must be paid commission for a sale.  Most of our deals require a very small down payment, usually too small to cover the Realtor® commission.  (The low down payments posted on this website may not be possible with a Realtor®.)  For these reasons, we do not suggest that you use a Realtor®, but rather contact us directly.

 

If a Buyer is represented by a Realtor® & the Buyer wants to participate in Seller Financing offered on this web site, parties must agree on an arrangement in advance to satisfy the Realtor® commission & the Broker requirements, if any, for the Seller Financing.

 

About Riverdale Estates LLC & Riverdale Estates Trust

 

Riverdale Estates LLC (2006-present), formerly Riverdale Estates Trust (1998-2011), is a family-operated Gilbert-based business that specializes in solving housing needs & providing seller financing solutions.  The 'Riverdale' team has an excellent history of satisfied tenants, home buyers & borrowers in the East Valley.  Riverdale Estates LLC is not a real estate agency, Realtor®, real estate broker, registered account servicing agency, title company or loan originator.  Rather, Riverdale Estates LLC advertises homes for lease or sale for the owners of the homes and at no cost to the tenants or buyers.

 

For hopeful home buyers, Riverdale Estates LLC emphasizes the realistic & successful accomplishment of buying a home.  The 'Riverdale team' has nearly 2 decades of experience in the East Valley helping people realize their dream of home ownership by advertising nice properties, realistic Lease Options & favorable seller financing.  Riverdale Estates LLC & Riverdale Estates Trust have proven to be credit worthy, stable, reputable, knowledgeable, experienced & successful in tailoring workable deals to suit each buyer's circumstances.  Importantly, all real estate offered is held securely in Arizona limited liability companies owned by an Arizona limited partnership, providing the safety & longevity of solid estate planning, so the buyer can have peace of mind when making the meaningful commitment of home ownership.

 

For valued tenants looking for a nice home to rent, Riverdale Estates LLC offers well-maintained rental properties in good neighborhoods in the East Valley (Gilbert & East Mesa) at fair rental pricing.  Repair requests are responded to quickly & happily.

 

We welcome your comments & hope you look to us for your housing needs.

 

Thank You!

Riverdale Estates LLC

Bryan & Soo-Z Deane, Members

 


 

 

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Phone (480) 782-8393 to see a home

9:00am to 9:00pm ~ 7 days / week


P. O. Box 2018 ~ Gilbert, AZ 85299

Office Phone: (480) 782-8393 ~ Fax: (480) 814-9204

Out of State Phone: (800) 301-8775 ~ Fax: (800) 301-9830

web site: riverdaleestates.net ~ email: riverdale@cox.net

 

Last updated: May 20, 2015

 

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