Zegacy is a virtual matchmaking platform that connects potential homeowners with real estate investors, offering an alternative to traditional bank loans through lease-purchase options (i.e.rent-to-own)

Zegacy facilitates rent-to-own agreements by acting as a matchmaker, connecting tenant buyers with private real estate investors to arrange structured rent-to-own agreements.

A tenant is a rent-to-own home buyer who can be matched with an investor to finance the purchase of the home.

An investor is a private individual or private entity providing financing/funds to purchase a property on behalf of the tenant.

Individuals interested in rent-to-own home buying and investors looking to engage in lease-to-own real estate investments can benefit from using Zegacy.

Zegacy prioritizes security by only sharing personal information with consent to ensure a successful match, storing all sensitive data securely on internal servers.

The duration varies by negotiation, ranging from 1 to 5 years, with 3 years being the average.

Zegacy does not list properties directly but matches tenant buyers with private investors who purchase homes on their behalf, suitable for a lease with an option to buy.

Penalties are similar to those of a traditional rental: risk of eviction and loss of any equity. If an investor fails in their obligations (e.g., taxes, insurance), tenants may cover these costs and deduct them from the purchase price, varying by state.

Zegacy does not intervene in disputes. Users are advised to seek legal representation or consult with an attorney as their first line of defense.

Zegacy provides a library of resources to help tenants and investors navigate through the rent-to-own journey.

Costs vary based on negotiation between the tenant and the investor. Terms generally improve with lower risk perceived by the investor and more attractive tenant profiles.

The tenant needs funds at the time of executing a purchase agreement, similar to a security deposit. The investor pays earnest money initially, with the majority of funds due at closing.

A lease option gives the tenant the right, but not the obligation, to purchase the property at the end of the lease. A contract for deed involves payments to the seller until the price is fully paid, then the title transfers.

How to Protect Yourself:

1. Understand the Contract: Thoroughly review and understand the terms of the agreement, including the purchase price, operating expenses (OPEX), capital expenses (CAPEX), cashflow, maintenance responsibilities, and what happens if the tenant cannot purchase the home at the end of the lease.
2. Get a Professional Inspection: Have the property inspected to uncover any potential issues.
3. Seek Legal Advice: Consult with a real estate attorney to ensure your interests are protected.

Investors gain access to a vetted pool of tenant buyers and properties, streamlined transactions, and a secure investment environment with structured returns.

Investors benefit by pre-approving tenants and vetting properties, allowing them to match their investment criteria with real opportunities. This model provides cash flow through rent and the satisfaction of aiding homeownership.

The quality and condition of properties are agreed upon mutually by tenants and investors, ensuring minimum safety standards and rental occupancy requirements are met.

The investor holds the title. They sign a right-to-purchase contract with the tenant, granting the tenant the first right of refusal to purchase the home.

The investor signs title and mortgage documents required to close on a home. The tenant signs a lease and an option agreement with the investor.

As with any rental property, rent-to-own is no different. There are a number of strategies that investors can use to help the tenant pay rent, or in worse case scenarios, encourage the tenant to leave the home.

As the owner of the property, you can make the decisions to extend the lease option contract or sell the property.

Sometimes tenants don't keep the property in the condition that is safe and/or livable. In these instances, as the owner, it is your responsibility to communicate what is not up to your standard and how both parties can reach an agreement.

Tenants select properties at market prices from the MLS (e.g., from Zillow, Redfin, Trulia, etc) that they are interested in rent-to-own-ing

 Class A:

• Class A properties represent the pinnacle of real estate, featuring top-tier buildings in prestigious locations. These modern structures, built within the last 15 years, boast luxurious amenities and are situated in highly sought-after areas with excellent schools and affluent residents. They command premium rents and sale prices, attracting intense competition among investors, which can lead to narrower profit margins.

Class B:

• Class B properties are a notch below Class A, generally older but well-maintained with ongoing investment needs. Located in good neighborhoods with decent amenities and infrastructure, they offer solid career opportunities and moderately rated schools. These properties are often seen as “value-add” opportunities, where renovations can significantly enhance their value. They come with higher risks than Class A but can be acquired more affordably, allowing for potentially higher profit margins.

Class C:

• Class C properties are older buildings, typically over 30 years old, that often require substantial renovations. They are located in less desirable neighborhoods and are priced the lowest due to their condition and higher associated risks. While they offer potential for lucrative returns if renovated successfully, they also come with significant challenges. Properties in better condition and locations can mitigate some risk but generally offer lower yields without improvement efforts.

Class D:

• Class D properties are the most challenging investments, found in economically distressed areas with high crime rates and poor infrastructure. These buildings are in poor condition and require extensive repairs. They are purchased at very low prices but carry the highest risks, including management difficulties and potential for significant financial loss. However, for experienced investors, they offer the possibility of high returns in exchange for the considerable risks involved.