Care Facility Lease,Lease Purchase or Purchase

We don't recommend that you operate your care home business on leased property. You will face too much uncertainty. You may run out of lease term when your business is right on track and generating good income. The owner might sell the property and the new owner could demand to share some of your profit by increasing your rent. You also could easily face conflicts with the landlord due to heavier wear and tear, which is absolutely normal when you run a care facility. If you decide to lease, we recommend that you also secure a one to two year option to purchase agreement with your lease. Lease purchasing is a great way to own a facility. Here are some Buyer Benefits you'll enjoy:

• Low entry barrier: A great way to start your business with a minimum cash investment.
• Business try-out: You have sufficient time to try out your business adventure until the option date. You will have up to 24 months to investigate the property and the neighborhood refine your business plan and perform your marketing research. You reserve the right to decide whether to exercise the option or not. At the end of the lease term you can choose to relocate your business if you like. The risk of a substantial financial loss due to a failed business is minimized.
• Rent money also can serve as your cash down payment: Every month a portion of your rental payment can be credited towards your down payment. There will frequently be very little or nothing left to pay for a down payment at closing.

• Profits from appreciation: Since the sales price is locked in when the Lease-Purchase agreement is signed, any increase in property value will increase buyer/tenant’s equity in the property. Equity accumulates much faster than with conventional and/or commercial financing.

• Assign your option for a profit: If you are allowed to assign your option, you might sell your business with the option right to a third party for a profit.

• Increased buying power: If you are investing the same amount of cash, now you can own and control more facilities than you would be able to through conventional financing, since you do not have a large one-time down payment.

• Easy approval: Your credit qualification and final approval will be based solely on the discretion of the landlord/seller instead of a lender, who could take months to approve a loan and demand loads of documentation.

• Legal control of the property: You can enjoy legal control of the property for a specified period of time without actually having to own it.

• No taxes: Since you do not own the property yet, you will not have to pay property taxes, and your liability exposure could be dramatically reduced.

• Quick start-up time: Typically, you can take control of the business and the property in a couple of weeks. The time you save from a conventional escrow can be used to shorten your profit generating cycle.

• Peace of mind: You can have full control of the property and maintain or improve it however you wish.