Guarantees the Rental Income During the Lease Period
Property Management Fees
Insures the Property from Peril
Insures the Property with a Home Warranty Covering Mechanicals and Other Typical Repair Scenarios
Provides Transaction Support and Program Providers
Monthly Flow of Funds During Lease Period Lease Payments Lease Servicer Principal Interest Taxes Insurance Credit Counseling Property Oversight Servicing Fee $35/mo Purchase price x 30 year amortization at prevailing rate plus Actual Taxes, Insurance, $135 for Credit Counseling and Property Oversight Lease Payment Stripped & Distributed Collected Via ACH Reserve Pool Seller Carrier Program Administrator Due 1 st of Month Late After 5 th Late Fees go to the Servicer Funded by Buyer’s Program Fee 1 1/2 % of Purchase Price of Home Pays if Renter Defaults Re-Insurer Backs Reserve Pool
One-Percent of the 1 ½% Tenant Program Fee is Applied to a Reserve Pool and is Held by the Lease Servicer (Mitas Specialty Servicing) on Behalf of the Program as a Condition of our Llyod’s of London Policy.
It is Utilized to Protect the Seller’s Cash Flow from Default by the Tenant During the Lease Period.
Seller fees Q: Does the Seller Pay Any Program Fees to LTO? A: Yes. 2 ½% of the Listing Price is Due When the Tenant Becomes the Owner of the Property (At the end of the Lease). Traditional Real Estate Commissions/Fees Still Apply. Seller Also is Responsible for an Appraisal Fee and Title Search. Remember! Seller Receives a FULL PRICE OFFER Seller Receives Guaranteed Rent Cash flows are Insured Against Loss Seller Earns More Net Seller Proceeds Realtors Earn More Money