Buy our model homes and we'll lease them back

[zoog]

This has probably been going on for a while now but caught my attention today on Minyanville.



An example: http://www.livethelakes.com/leaseback_procedures.php

The rental amount is based on the loan payment and will cover principal, interest, taxes and insurance up to 70% loan to value. If an investor wishes to and can procure financing with a down-payment of less than 30% of the purchase price, the rental amount will cover the payment only up to the 70% LTV threshold.

Lennar will terminate the lease once all homes have been sold and all sales considered firm. This may result in the lease terminating prior to the final closing within the community. The lease for the model home that houses the Welcome Home Center/Sales Pavilion may be extended through the final closing for the community.

The lease agreement prohibits the re-sale of model homes via auction for a period of one year beyond the termination of the lease.

Don't miss out, it's always a great time to buy! .... aaand then lease back to the homebuilder, who will rent it out.:rolleyes: