investmentpropertiesondemand.com

15 Replies

Anybody know if this is legal? They offer 30 year lease option and have tenant buyer responsible for taxes, maintenance and insurance. Each month the balance to buy is reduced but 1/360th.

Technically looks like an owner finance deal but with eviction rights rather than foreclosure rights. So is this legal? A Triple Net 30 year lease option i guess?

I'd like to see the contract.

Hi Brian,

I don't have a contract but saw they had a lot of homes listed on craigslist and there was also an article about it on the Florida Realtor newsletter. After further googling them, i found another website they have kedollc.com

About our Program page states:

Kedo Funding Purchase Program

The Kedo Funding purchase program has a number of benefits for the buyer over traditional mortgages, our competitors' owner finance contracts, rent to own and lease options. We have worked to take the risk out of buying a home and make the process as easy as possible for you.

A few of the benefits are:

  • Equity builds at a much faster rate than with a traditional mortgage
  • Easy to qualify – all we require is a copy of your driver's license, certified funds, and proof of income
  • You have a low down payment – as little as $2,000
  • We can close in as few as 3 days
  • You can buy a home at a lower monthly cost than renting

We have helped hundreds of families successfully buy their homes in many cities across the country.

The Freedom Advantage

Equity Cahrt

We are able to offer a fixed rate payment for 30 years without the increases you would have with a standard lease or lease purchase. Equity builds at a much faster rate than it would with a standard mortgage. In this chart, you can compare the difference in equity after 10 years with our program versus a traditional mortgage.

If you choose to terminate the agreement, you are not liable for the full amount of the purchase price. You simply complete the remainder of your lease and are no longer liable. You have the right to purchase the home at any time, but are under no obligation to do so.

There are no balloon payments (final lump sum) or deadlines when you need to pay off the property. If you make the agreed-upon payments, your contract will last a full 30 years. However, you can make early payments, or pay off your balance in full at any time, with no penalties.

With a traditional mortgage, you gain very little equity for the first fifteen years, as shown in the graph below. The graph shows how you start building equity at an even rate throughout the whole term. Part of your monthly rent payment will serve as a "credit," which will continuously reduce the option price.

In addition to eliminating credit checks, Morningside Funding completely eliminates banks. The entire transaction process will be managed directly between you and our team.

Balance Chart Balance Chart

FAQs

Q: Can I refinance at any time?

A: Yes, you can get financing at any time for your remaining balance.

Q: What are the closing costs if I get a loan from another lender to pay off the balance owed? Do you charge any pre-payment penalties?

A: No, you can pay your balance off at any time, and we do not charge any fees. You would only be required to pay any county recording fees and government transfer fees if they apply. We also recommend that you purchase title insurance, but it is not required. If you are getting a loan, the new lender may require you to pay a number of additional fees, but this could be a good option for you depending upon the interest rate the lender offers you.

Q. If I pay a total of $650 per month, the contract states $200 is applied towards the $72,000 price of the property for 30 years. Where does the other $450 per month go and how long is the option term?

A. The $450 per month is the rental amount and will not apply to the purchase price. The option term is 30 years, but you can exercise the option to purchase at any time. Unlike a traditional lease option, our program gives you credit to offset the option price.

Q. If I decide to move or I don't make my payments, what happens to the down payment and purchase payment offsets?

A: The down payment is for the option to buy the property at a fixed price. If you choose not to exercise this right or fail to make your payments, the down payment is forfeited, along with any other "rental credits." We are a small, understanding company that will work with you if times get hard; please contact us if you experience financial trouble, as we would prefer to keep you in your home.

Q. Who is responsible for taxes, insurance, and maintenance?

A. The responsibilites are the same as with a traditional mortgage – the buyer is responsible for all taxes, insurance, and maintenance.

Q: How do I buy a home through your program?

A: Please visit the "How to Buy" page on kedollc.com for further information.

Q: Am I limited to the properties listed on your website?

A: Yes. At this time, we do not do outside financing. Although we may not have a property that fits your needs at the moment, we are always adding new properties to our offerings, so please check back frequently.

Q: As a homeowner working with your program, do I have the same restrictions as a renter?

A: No. However, certain neighborhoods may have restrictions that you may have to follow, and there are some very specific restrictions in the contract. As for painting, improvements, pet ownership and the like, you have the same rights as any other homeowner.

Just an observation.....their "equity after ten years" for Traditional Loan is an absolute lie/misrepresentation, at today's rates anyway.

$72k, 30 year term, 4.5%--balance at end of 10 years=$57,664

So, "equity" is $14,366.

AND ----your monthly payment on the Traditional Loan is $365/mo, Not the $750/mo in their lease plan.

AND------A 10 year loan at 4.5% for $72k. has a monthly payment of $ 746.22/mo------so at $750/mo on Traditional Loan, your balance is $00.00 so your "equity" would be $72k. Want a No Brainer this is!

And that equity is really there, whereas if you "trip up" in their lease plan, that "equity" was a delusion, and you enter the world of the buy here-pay here used cars guys reality.

That state's bank regulation enforcement div will be paying them a call any day now. Seems clearly covered by Dodd Frank. The early discussions of DF here mentioned specifically the folly of a long term LO.

Here in GA it's statutory that the landlord is responsible for maintenance...

That state's bank regulation enforcement div will be paying them a call any day now. Seems clearly covered by Dodd Frank. The early discussions of DF here mentioned specifically the folly of a long term LO.

Here in GA it's statutory that the landlord is responsible for maintenance...

I have alot to learn from the blind to reality optimists!!!!! LOL

yeah....it seemed like red flags everywhere but couldn't get over the volume of properties that they have nationwide. In fact I think they may have in Georgia as well

Originally posted by @Victor Goitia r Goitia Goitia:
Hi Brian,
I don't have a contract but saw they had a lot of homes listed on craigslist and there was also an article about it on the Florida Realtor newsletter. After further googling them, i found another website they have kedollc.com
About our Program page states:
Kedo Funding Purchase Program

The Kedo Funding purchase program has a number of benefits for the buyer over traditional mortgages, our competitors' owner finance contracts, rent to own and lease options. We have worked to take the risk out of buying a home and make the process as easy as possible for you.

A few of the benefits are:

  • Equity builds at a much faster rate than with a traditional mortgage
  • Easy to qualify – all we require is a copy of your driver's license, certified funds, and proof of income
  • You have a low down payment – as little as $2,000
  • We can close in as few as 3 days
  • You can buy a home at a lower monthly cost than renting

We have helped hundreds of families successfully buy their homes in many cities across the country.

The Freedom Advantage

Equity Cahrt

We are able to offer a fixed rate payment for 30 years without the increases you would have with a standard lease or lease purchase. Equity builds at a much faster rate than it would with a standard mortgage. In this chart, you can compare the difference in equity after 10 years with our program versus a traditional mortgage.

If you choose to terminate the agreement, you are not liable for the full amount of the purchase price. You simply complete the remainder of your lease and are no longer liable. You have the right to purchase the home at any time, but are under no obligation to do so.

There are no balloon payments (final lump sum) or deadlines when you need to pay off the property. If you make the agreed-upon payments, your contract will last a full 30 years. However, you can make early payments, or pay off your balance in full at any time, with no penalties.

With a traditional mortgage, you gain very little equity for the first fifteen years, as shown in the graph below. The graph shows how you start building equity at an even rate throughout the whole term. Part of your monthly rent payment will serve as a "credit," which will continuously reduce the option price.

In addition to eliminating credit checks, Morningside Funding completely eliminates banks. The entire transaction process will be managed directly between you and our team.

Balance Chart Balance Chart

FAQs

Q: Can I refinance at any time?

A: Yes, you can get financing at any time for your remaining balance.

Q: What are the closing costs if I get a loan from another lender to pay off the balance owed? Do you charge any pre-payment penalties?

A: No, you can pay your balance off at any time, and we do not charge any fees. You would only be required to pay any county recording fees and government transfer fees if they apply. We also recommend that you purchase title insurance, but it is not required. If you are getting a loan, the new lender may require you to pay a number of additional fees, but this could be a good option for you depending upon the interest rate the lender offers you.

Q. If I pay a total of $650 per month, the contract states $200 is applied towards the $72,000 price of the property for 30 years. Where does the other $450 per month go and how long is the option term?

A. The $450 per month is the rental amount and will not apply to the purchase price. The option term is 30 years, but you can exercise the option to purchase at any time. Unlike a traditional lease option, our program gives you credit to offset the option price.

Q. If I decide to move or I don't make my payments, what happens to the down payment and purchase payment offsets?

A: The down payment is for the option to buy the property at a fixed price. If you choose not to exercise this right or fail to make your payments, the down payment is forfeited, along with any other "rental credits." We are a small, understanding company that will work with you if times get hard; please contact us if you experience financial trouble, as we would prefer to keep you in your home.

Q. Who is responsible for taxes, insurance, and maintenance?

A. The responsibilites are the same as with a traditional mortgage – the buyer is responsible for all taxes, insurance, and maintenance.

Q: How do I buy a home through your program?

A: Please visit the "How to Buy" page on kedollc.com for further information.

Q: Am I limited to the properties listed on your website?

A: Yes. At this time, we do not do outside financing. Although we may not have a property that fits your needs at the moment, we are always adding new properties to our offerings, so please check back frequently.

Q: As a homeowner working with your program, do I have the same restrictions as a renter?

A: No. However, certain neighborhoods may have restrictions that you may have to follow, and there are some very specific restrictions in the contract. As for painting, improvements, pet ownership and the like, you have the same rights as any other homeowner.

Victor its a disguised Installment Sale .

@Bill Gulley should send them an email.

FTC will not like it one bit.

Yes it is, credits reducing the purchase price is an installment sale. Florida is full of RE crooks, state prison might be the office address! :)

We could all make a simple complaint to HUD and the CFPB, and the state RE commission and state finance department.

This home seller is advertising to sell homes which we see as an apparent violation of Dodd-Frank offering an installment sale under a lease-option and is contrary to the public interests and competitive market conditions.

Or something like it.

I can tell you too, you don't need to be in or from any state to file a complaint. Most regulator or oversight offices have an on line complaint or fraud hot line.

Attorneys police their own through the bar association, Realtors through the RE commission and the Board of Realtors, investors aren't organized, but should be, IMO. You need to police your own, crooks take legit business away from you, harm the image of investors, make things harder for you to deal in, authorities paint with a broad brush bringing you in the same scam categories and ultimately you suffer the backlash of their greed or ignorance or both. Like the SAFE Act and Dodd-Frank, why were investor deals included? Because investors were not acting in good faith and in the public good, that's why. :)

lol...they are based out of Texas. Properties located in all the high foreclosure states.

I just looked at the website. There are a lot of homes listed on the site. I can't tell how long they have been in business, but business appears to be booming for them.

It appears they have been in business since September 2009.

http://www.linkedin.com/pub/matthew-donowho/a/9ab/697

The article i read in the Florida Realtor newsletter stated that they were buying homes in bulk. It gave an example of a homebuyer not getting a home they put a higher offer on and that the home eventually sold to them in a bulk sale for far less. I will see if i can find the article.

Originally posted by @Victor Goitia:

Hi Brian,

I don't have a contract but saw they had a lot of homes listed on craigslist and there was also an article about it on the Florida Realtor newsletter...

I have the contract available, and would be very appreciative of professional feedback on the terms. I am a potential buyer, ie. smalltime investor, planning to payoff in 1-3 years instead of 30, based on location and strong chances of major "urban renewal" in the logistically ideal location.

Originally posted by @Brian Gibbons:

I'd like to see the contract.

I have the contract available, and would be very appreciative of professional feedback on the terms. I am a potential buyer, ie. smalltime investor, planning to payoff in 1-3 years instead of 30, based on location and strong chances of major "urban renewal" in the logistically ideal location.

Disclosure: home buyer

my husband and I also have a house from kedo homes and ya it's a mess. 

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