CALL US TODAY AT (956) 286-2300 & (956) 724-8000
Please contact South Gate Plaza LLC. for princing & availability for the office suites. In addition suties range from 1210 SqFt and can be combined to suit larger space requirements.
Lease to Purchase Option | FAQ's
What is a Lease to Purchase Contract?
It is basically a lease contract but offering the tenant the opportunity to become the owner of the property. Along with many other benefits and advantages, the option allows the tenant to operate his business since the very first day.
Is a Down Payment required?
No. The traditional 20 - 30 % down payment if you are to purchase the conventional way is not charged under this contract. Instead, there is a payment (deposit) of about 5 % to 7 % of the total price, and it is called an option.
How does it work?
A portion of your monthly rent payment gets accumulated through the contract's life (3 years). This amount along with the initial deposit will be credited as part of the down payment. At the end of the contract, if the tenant decides to exercise the option, the money accumulated is totally credited towards the signed price.
What is a Lease to Purchase Contract?
It is basically a lease contract but offering the tenant the opportunity to become the owner of the property. Along with many other benefits and advantages, the option allows the tenant to operate his business since the very first day.
Is a Down Payment required?
No. The traditional 20 - 30 % down payment if you are to purchase the conventional way is not charged under this contract. Instead, there is a payment (deposit) of about 5 % to 7 % of the total price, and it is called an option.
How does it work?
A portion of your monthly rent payment gets accumulated through the contract's life (3 years). This amount along with the initial deposit will be credited as part of the down payment. At the end of the contract, if the tenant decides to exercise the option, the money accumulated is totally credited towards the signed price.
Lease to Purchase Option | FAQ's
What would happen then?
The remaining balance will be financed either through the bank of your preference or by owner finance.
So, am I buying or leasing?
You are the owner since the very first day, as long as you decide to exercise the option at the end of the contract. If customer decides not to exercise the purchase option, then you can continue renting.
Do I have to pay property taxes during the period of the contract?
No. That is one of the benefits, you will start paying taxes once the contract is over, and you decide to exercise the purchase option In the meanwhile, and during the contract's life the moneys paid as rent are 100% deductible for mostly any kind of business operation.
What would happen then?
The remaining balance will be financed either through the bank of your preference or by owner finance.
So, am I buying or leasing?
You are the owner since the very first day, as long as you decide to exercise the option at the end of the contract. If customer decides not to exercise the purchase option, then you can continue renting.
Do I have to pay property taxes during the period of the contract?
No. That is one of the benefits, you will start paying taxes once the contract is over, and you decide to exercise the purchase option In the meanwhile, and during the contract's life the moneys paid as rent are 100% deductible for mostly any kind of business operation.
Lease to Purchase Option | FAQ's
Do I have to make the finish out of the property?
No. The landlord will be delivering a basic finish out. The tenant will not have to make any other investment expenses different than his/her's furniture, merchandise, and insurance, pertaining to his/her particular business.
If I sign a lease to purchase contract today, would the total price be the same at the end of the 36 months?
Yes. Once you sign it, the price is locked. Tenant will be making a significant profit by buying today (with little money down), at prices that will be much higher at the end of the contracted period.
Can I rent or sub-rent the property?
As long as the tenant complies with the contract clauses, you are the propiertor. The new sub-leased has to be approved by the landlord, and be in compliance with the Tenants Association by-laws.
Do I have to make the finish out of the property?
No. The landlord will be delivering a basic finish out. The tenant will not have to make any other investment expenses different than his/her's furniture, merchandise, and insurance, pertaining to his/her particular business.
If I sign a lease to purchase contract today, would the total price be the same at the end of the 36 months?
Yes. Once you sign it, the price is locked. Tenant will be making a significant profit by buying today (with little money down), at prices that will be much higher at the end of the contracted period.
Can I rent or sub-rent the property?
As long as the tenant complies with the contract clauses, you are the propiertor. The new sub-leased has to be approved by the landlord, and be in compliance with the Tenants Association by-laws.
Lease to Purchase Option | FAQ's
Can I sell the property?
Yes, if the landlord is notified about the intention to buy and balances are covered at closing time.
Is the initial deposit refundable ?
It is non-refundable if the purchase option is not to be taken (exercised).
It is refundable and credited if tenant exercises the purchase option.
Do I have to notify the landlord about my decision to purchase?
Yes, you must do it in writing at least 6 months before the contract end.
Can I sell the property?
Yes, if the landlord is notified about the intention to buy and balances are covered at closing time.
Is the initial deposit refundable ?
It is non-refundable if the purchase option is not to be taken (exercised).
It is refundable and credited if tenant exercises the purchase option.
Do I have to notify the landlord about my decision to purchase?
Yes, you must do it in writing at least 6 months before the contract end.
Lease to Purchase Proposal Direct Benefits:
Minimum Cash out of the pocket.-
When you purchase a property conventionally, you must pay closing cost, prepaids, and a Down payment, usually running between 20 % to 30 % of total price. Under this option, buyer is just paying 5 % of the price.
Rent Money is Working towards the purchase of the property.-
Each month that you pay rent, a portion of that payment will be credited towards your down payment or off the sales price.
Option consideration is credited towards the purchase of the property.-
When you execute (sign) a lease purchase contract you must pay the landlord/seller an option deposit. This money is your vested interest in the property, and will be fully credited (100 %) to either your down payment or off the sales price.
Sales price is locked in:
The sales price will be stated in the lease purchase agreement. Since the sale price is locked in before closing, any increase in property value will mean that your equity is increasing in the real state.
No taxes, less liability.-
Since you do not own the property completely yet, you will have not to pay property taxes and your liability exposure will be drastically reduced.
Quick move in time.-
Move in time is typically less than a week compared to conventional move in times of one to three months from the time the offer was made.
**Questions and answers for explanation purposes. The policies, changes in percentages, and terms, can be modified by the company
Minimum Cash out of the pocket.-
When you purchase a property conventionally, you must pay closing cost, prepaids, and a Down payment, usually running between 20 % to 30 % of total price. Under this option, buyer is just paying 5 % of the price.
Rent Money is Working towards the purchase of the property.-
Each month that you pay rent, a portion of that payment will be credited towards your down payment or off the sales price.
Option consideration is credited towards the purchase of the property.-
When you execute (sign) a lease purchase contract you must pay the landlord/seller an option deposit. This money is your vested interest in the property, and will be fully credited (100 %) to either your down payment or off the sales price.
Sales price is locked in:
The sales price will be stated in the lease purchase agreement. Since the sale price is locked in before closing, any increase in property value will mean that your equity is increasing in the real state.
No taxes, less liability.-
Since you do not own the property completely yet, you will have not to pay property taxes and your liability exposure will be drastically reduced.
Quick move in time.-
Move in time is typically less than a week compared to conventional move in times of one to three months from the time the offer was made.
**Questions and answers for explanation purposes. The policies, changes in percentages, and terms, can be modified by the company