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How to Get a Personal Loan with No Proof of Income

How to Get a Personal Loan with No Proof of Income

You need a loan because you need money. You apply for the loan and the bank says that they can't approve you because you can't show that you're earning money.

September 20, 2019
May 1, 2018

Pros & Cons of Family Sale Leasebacks

Residential sale leaseback deals have been taking place since long before EasyKnock revolutionized these types of deals with their Sell and Stay program. In many residential sale leaseback transactions of the past, a family member or other close relation buys the home and leases it back to the home’s original owner rather than a company like ours purchasing the home. This type of agreement is typically between an older, retired individual, and a family member, oftentimes their adult child.

How Do Family Sale Leaseback Agreements Work?

The very basics of this type of agreement are that a family member or other close relation secures financing and buys the home. Beyond that, how they finance that home and how the lease deal afterwards is handled can vary a great deal from one deal to the next.
As far as financing goes, there are several options. The original owner may finance the home, owner finance style. This ends with both parties essentially passing money back and forth in the form of mortgage payments and rent payments. The buyer may also secure outside financing, either with their own cash or by getting a mortgage like they would for a rental property they wanted to purchase.
When it comes to lease agreements, these also vary. Both parties may agree that the original owner can continue living in the home for a set number of years or until they’re unable to anymore due to declining health or death, or any other terms they could think up.
The now-homeowner takes over the responsibilities that a landlord would have like paying property taxes, homeowners association dues, insurance, and general upkeep and home improvements.

When Does a Family Sale Leaseback Make Sense?

There are a few scenarios where a family sale leaseback agreement makes perfect sense, benefitting all of those involved. Here are a few times when a family sale leaseback may make more sense than other equity release methods like Sell and Stay or reverse mortgages.

  • When the home holds a great deal of sentimental value and the family wants to ensure that they’re able to keep it after their loved one passes on.
  • When a family member has plenty of cash on hand to act as the bank in a family sale leaseback deal and sees the deal as a sound investment; they plan to reap the tax benefits of a rental property.
  • To avoid fees charged by reverse mortgages; more favorable terms can be offered since there’s less consideration given to profit.
  • To ease the burden of property upkeep, both physical and financial, on an elderly relative.

What are the Drawbacks to a Sale Leaseback Orchestrated by Family?

There are a lot of positives when it comes to a family member-backed sale leaseback agreement, but there are definitely some downsides to doing business with family, too.
The upkeep and some financial obligation falls to the family member.
Doing business with family members can cause a lot of tension.
Agreeing upon terms could cause friction between loved ones. It’s hard to handle business conflicts with the people you love.
Business opinions can feel very personal when they aren’t in line with those of your loved one.
People feel trapped in a deal with family, if one side doesn’t hold up their end of the bargain; carrying out legal action to uphold the contract would be very awkward.
All the issues above can lead to the deterioration of family relationships.
If something happens to the financier’s cash flow, the home could be at risk, leaving an elderly family member in dire straits.

Sale Leaseback Doesn’t Have to Be Between Family Members Anymore

Sell and Stay offers residential sale leaseback agreements to people without getting any loved ones involved. It allows people to reap many of the benefits of a family sale leaseback agreement without the risks, making it ideal for individuals who need access to their home equity and who just want to live out their days in their current home. Learn more about Sell and Stay to determine if it might be a viable option for you or a loved one.

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