Allied Ventures, LLC

In a lease-option, there are 2 contracts.  One contract is for the lease and a second contract is for the option to purchase the property.  The seller/landlord can not sell the property to anyone but the option contract holder during the option period

A lease option is different from a lease purchase, in that a lease purchase binds both parties to the sale, whereas in a lease-option only binds the seller to sell, it does not bind the buyer to buy.

Buyer purchases the option for 3-5% of the purchase price of the property. The option fee is non-refundable given that the option fee is not a deposit but has been used to purchase something of value: the option.

The length of the option is 5 to 10 years depending on the arrangement made.  This provides ample time for credit repair, amass the down payment or rectify any financial hardships.

The purchase price is agreed upon at the inception of the option and will increase by a nominal amount annually (usually 2%).

Home improvements are allowed during the lease term with landlord approval which builds equity (so-called "sweat equity") in the home since the agreed-upon purchase price is fixed but the value of the house has increased.

The lease contract term will mirror the option term expiring upon exercising the purchase option.

The lease contract is very similar to residential lease contract.  The lease payment will cover real estate taxes, building insurance, and HOA assessments.

The lease payment is negotiated between the seller and lease option holder including using a portion of the monthly rental payment toward reducing the purchase price.

The tenant-buyer must  occupy the property and can not sub-lease.  Additionally the tenant buyer can not sell, assign or transfer the purchase option without written consent of the landlord/seller.