Not a frequent question, but a baffling one that we occasionally receive, despite our decade of experience in real estate as Proxima Investors and our esteemed A+ rating with the Better Business Bureau, concerns the legality of our deals on terms.

In general, deals on terms are entirely legal across all states, provided they comply with applicable rules and regulations at all levels of government.

However, it is important to note that certain jurisdictions may impose specific requirements that must be met. A prime example is Texas, where unique regulations regarding lease-options have been established in response to abuses by unscrupulous real estate investors and professionals. These regulations aim to enhance transparency and protect buyers from exploitation, including mandates for disclosing any underlying debt.

Aside from these specific instances, arrangements such as lease-options, seller financing, and other deals on terms remain legal unless explicitly prohibited, just like any other conventional transaction. In our view, such prohibitions are unlikely to emerge in the near future.

It is essential to understand that despite the varied terminology used for marketing purposes, these deals typically fall within well-defined categories recognized and regulated by law—such as rentals, sales, and options—rendering them completely legal transactions.

The financing aspect present in certain deals on terms, such as seller financing, may be subject to specific regulations similar to those governing institutional lenders. The rules applicable to small lenders and home sellers who finance a purchase in a one-time transaction or for a limited number of properties are quite limited. These regulations are primarily designed to protect end buyers from unscrupulous practices while ensuring that the implementation of such financing methods is not unduly restricted. This approach supports and facilitates homeownership, which is a fundamental component of the American Dream and a significant objective for many individuals across the nation.

Our approach to contract drafting is tailored specifically to each unique transaction, reflecting the terms agreed upon by all parties involved. As principals in these deals, we have the technical capability and legal authority to craft our own contracts, rather than relying on generic, off-the-shelf documents as other real estate professionals can only use.

The process begins with a detailed discussion and agreement on all terms. then, we draft the contract, which is then reviewed by all parties for approval. This stage allows for corrections, additions, and modifications to ensure that the deal is perfectly understood and mutually agreeable. Only when all parties are satisfied do we proceed to contract signing and implementation.

This meticulous approach enables us to accurately address the needs, achieve the goals, and meet the expectations of both sellers and buyers. By designing custom deals, we can extract significantly more value for all parties involved, often bypassing traditional intermediaries such as banks, lenders, some real estate professionals, and landlords.

Our expertise in “Deals On Terms” allows us to offer a more nuanced and flexible approach, akin to a painter with a full palette of colors compared to one limited to black and white. While not every situation or property can benefit from this approach, the majority can. Our role is to explain and facilitate these transactions, as many individuals and even real estate professionals may lack familiarity with these innovative strategies. Let me point out that most of these methods have been around for a long time, some you could say “forever”; it’s their specific design and implementation that can be new to many, but not for the most sophisticated real estate experts.

Having specialized in deals on terms since 2015, we bring extensive experience and continuous, intensive training to the table. This allows us to adapt to the ever-changing real estate market and find optimal solutions, rather than being constrained by conventional selling or renting options.

The result is a win-win-win situation that benefits sellers, buyers, and us as facilitating investors. By structuring deals that circumvent traditional financial intermediaries, we can create truly advantageous arrangements for all direct participants.

Our commitment to this approach, combined with our expertise and adaptability, enables us to offer unique and valuable solutions in the real estate market, resulting in remarkably beneficial outcomes for all parties directly involved.

An Assigned Lease-Option in residential real estate is a specific type within the broad category of transactions with a Lease with the Option to Purchase a home on preagreed terms, within our range of real estate deals on terms.

It refers to a legal arrangement where a Real Estate Investor enters into a Lease Option Agreement with a Property Seller and then Assigns that Lease Option to another buyer, usually with a markup or a fee to realize a profit having setup the deal as a facilitator.

The bundle of rights transferred consists in the position in the original Lease Option contract with the Owner of the Property or with the Buyer or, alternatively, it consists in the position in the Agreement with the Buyer.

The transfer of such rights happens with an Assignment agreement, with both parties, Owner and End Buyer on Lease-Option.

Whatever the position, the exact Rights and Obligations transfer and put Owner and End Buyer (on a Lease-Option) in a direct relationship with the removal of the real estate investor whose exit is definite, upon approval by the parties of the new Lease-Option Agreement.

It differs from the Mediated Lease-Purchase as the deal becomes completely owned by the sellers who are the only one in control of the lease-option on the owners’ side, while the buyers deal directly with the

Based on this setup, the owner will have a turnkey lease-option deal; it’s ideal for the sellers who don’t want or can’t market the property on terms and design a deal on terms. Tired landlords are great candidates, but so are those who want or need to extract as much equity and value as possible from the deal. Other categories of sellers are good candidates, as those who want direct and total control of the relationship with the end buyers, or the buyers themselves, for whatever reason, may want such direct relationship.

Typically, the deal goes into effect with the critical requirement of seller approval, which is fair as the sellers are going to be handling the deal to the end, with the exercise of the option and the execution of the Purchase & Sale of the property.

The main benefits for the Buyer are the ability to anticipate possession of a home while setting up for the purchase, avoiding an immediate need for financing, and, for the seller, likely tax benefits, higher sales price, and further income in the form of regular cash flow. It also helps the house sell more quickly than conventionally, as it’s a rarer opportunity for a buyer. The buyers, therefore, often reduce or waive contingencies entirely, are willing to pay more than in a conventional transaction as it’s less appealing and, in the long term, more expensive for them.