Rent to Own

At Cervantez Investments Inc., we are dedicated to making your dream of home ownership a reality. Our rent to own program, also known as Lease Option, allows you to start working towards owning your home while living in it. If you have soft credit, we provide the support you need to improve it, and we have a diverse inventory of homes that qualify for this program. Once you qualify, we’ll guide you to the right resources to strengthen your credit and pave the way to your future home.

1. Pick a House

2. Pay the Option Payment

3. We will Guide you

Cervantez Investments Inc. is a premier real estate investment company that is dedicated to helping clients find their perfect home. Our unique approach begins with qualifying your needs to ensure we match you with the best options available. Once qualified, you can choose from a selection of homes available for lease options tailored to your preferences. Trust us to guide you through the process with expertise and personalized service.

Our team is committed to providing personalized service and guiding you through every step of the lease option process. Once you have picked your home, an option payment is required, typically involving a 5% of the home's price. Trust us to make your real estate journey seamless and enjoyable!

We are dedicated to making your real estate dreams a reality. We understand that navigating the path to home ownership can be overwhelming, which is why we will not leave you figure out how to qualify to buy your home alone. Our experienced team is here to guide you through every step of the process, ensuring you have the knowledge and resources needed to succeed. Trust us to help you turn your dream of owning a home into a tangible achievement.

Lease Option Details:

🔍 What Is a Lease Option?

A lease option is a real estate agreement that allows a tenant to lease a property for a specific period with the exclusive right (but not obligation) to purchase the property at a later date. This type of arrangement is often used when a buyer needs time to secure financing, improve credit, or simply wants to "test drive" the home before committing to a purchase.

🧾 Structure of a Lease Option Agreement

1. Lease Agreement

This component outlines the terms under which the tenant occupies the property:

Lease term is typically 1 to 3 years.
The tenant pays monthly rent to the property owner.
Standard rental responsibilities (utilities, maintenance, etc.) are defined—sometimes with expanded responsibilities for the tenant depending on negotiations.

2. Option to Purchase

The tenant is granted the exclusive right to buy the property during or at the end of the lease term.
This is not an obligation—the tenant can choose not to exercise the option.
A non-refundable option fee, typically 4% to 5% of the property's value, is paid upfront to secure this right.
The purchase price is usually agreed upon at the beginning of the lease, which protects the tenant if property values increase.

📋 Key Elements of the Agreement

Term Explanation

Option Fee - Non-refundable payment (typically 4–5% of the property value) made upfront to secure the right to purchase. Applied toward the purchase price if the option is exercised.

Purchase Price - Usually locked in at the beginning of the lease, offering potential price protection.

Option Period - The duration during which the tenant can choose to purchase the property (usually 1–3 years).

Lease Terms - Standard rental terms, potentially with additional responsibilities for the tenant.

Default Clauses - Define what happens if the tenant breaches the lease or does not exercise the purchase option.

🔄 How It Works (Example Flow)

The tenant and property owner sign a lease option agreement.
The tenant pays an upfront option fee (e.g., 5% of a $300,000 home = $15,000).
The tenant rents the property and complies with the lease terms.
At any time during the option period (or at the end), the tenant can choose to purchase the property.
If the tenant decides not to buy, the option expires and the owner keeps the option fee.

✅ Pros and ❌ Cons

For Tenant-Buyer:

Pros:

Secures the right to buy without immediate commitment.
Locks in a purchase price even if the market rises.
Allows time to arrange financing or improve credit.

Cons:

Option fee is non-refundable if the purchase isn’t made.
May assume greater maintenance responsibilities than a typical rental.
No guarantee of favorable financing when the option period ends.

For Landlord-Seller: