About us

Q: Who are you?

A: Option Properties LLC is an Ohio Limited Liability Company. Mihail Marius Pavel, CPA, MBA is the sole member and he lives in Westlake, Ohio (Cuyahoga County) west side of Cleveland with his wife and two teenagers.

Q: Are you a real estate broker?

A: Nope. Option Properties LLC is not a real estate broker. We do not represent ourselves as one and the offer to buy your property is not to be regarded as a solicitation to list your property on the MLS.

Full disclosure: Mihail Marius Pavel is a licensed real estate agent with OwnerLand Realty Inc. (SAL.2019001177)

Q: I don’t know you! How can I trust you?

A: Totally understandable. The home is most sellers largest and most important asset. We understand that and expect a high level of scrutiny. We invite everyone to ask any questions and do all the due diligence necessary so they are comfortable with us before deciding to work together. Our senior partners have been doing terms deals for 25+ years and they have A+ rating with BBB. They can be found at PrePropertySolutions.com. Our entire network of agents can be found at NationalPropertyTeam.com. You can see properties currently available for sale around the country and testimonials from home sellers and buyers.

Q: How did you get my number?

A: We use pay-for-access data aggregation services that supply us with For Sale By Owner listings information as well as MLS listings that are expired/withdrawn/cancelled. We also use various other means of locating homes that have been for sale or they are potentially for sale, including public information (assessor websites for example) and social media platforms.

Q: Why don’t you just buy my home?

A: Well we can, but we pay cash on properties that need work and is more in the rehab category. Yours is move in ready and doesn’t qualify for that because for those we only pay 65%-70% of retail for at best. If you’ll sell with terms, we’ll pay your transfer tax, and sometimes all of the closing costs which are usually several thousand dollars and we can close whenever you want.

Selling on terms

Q: What are the types of terms deals that you do?

A: We focus mainly on leaser purchase and owner financing deals. We can craft a deals in almost all situations. The main requirement is that the seller be willing to wait for a cash out. Most people want a traditional sale. However, when that option fails, we are almost always the best solution. Sellers that sell to us net at least 5-15% more that go the traditional route.

Q: How come I never head of these terms deals?

A: Terms deals have been around much longer than banks. People have always bought and sold property with terms. It is true is not the prevalent method of selling or buying a home today, but that does not mean it is not happening. Sellers net more when using terms and delaying the cash received. Ask us how and we can send you a few options and show you how by delaying the cash received, your return on your equity to be cashed out is much better than parking the money in a CD or gambling on the stock market.

Q: Why would I sell on terms and the traditional route with a realtor?

A: For more than one reason. The most obvious reason is that you will net more because we charge no commission, we pay the transfer tax and in some instances we pay the closing costs.

Sometimes selling with a realtor is not a good option due to the sellers situation or the status of the property (unfinished remodel, HOA assessments, etc.)

 Other consideration is the size of the buyer pool you are targeting. Traditional selling with a Realtor or with For Sale By Owner only target 1/3 to 1/4 of the buyer pool that can get a conventional mortgage today. We are targeting a much bigger pool of buyers and our chances to find a buyer are much larger than that of a traditional sale. 

The only time we are not the best fit is when the sellers needs the cash to buy the next home, but even then there are options we can give you that can help you accomplish your goals. Also, when seller that decide to explore what we have to offer see the returns we can generate for them, selling the home to us is an easy decision.

Q: How do you determine the price of my home?

A: We first have to see the property and do walk through. We take pictures and ask questions. We then do a comparable analysis and take a look at what is currently available for sale in the area. Based on this information, we negotiate what we both believe is a fair price based on the information collected.

Q: Can my attorney review the contract?

A: Of course. We would expect that and all our closings occur with an attorney and you don’t have to pay for that – we pass that along to our buyer. Having said that, not all attorneys are familiar with anything beyond the traditional cash sale. There may be some confusion. If that is  the case, we’re happy to speak with them or they could call our attorney who is very familiar with this process.

Q: Can I see the contract before I show you my home?

A: We can’t send you a contract or have your attorney review until we’ve had a meeting of the minds so to speak so we can propose some numbers and we cannot do that until we see the home. Before we see the home we’d like to confirm that you’d consider selling with terms in general or via lease purchase. If so, we’ll come by and then give you something by the next day for your attorney.

Lease Purchase

Q: What is a Lease Purchase?

A: A lease purchase is simple. It means that we agree upon a price today, we then will take over any and all responsibilities with a definitive date of purchase. On or before that end date that we agree upon, we will cash you out. Nothing more than a delayed cash sale.

Q: How long a term are we talking here on a lease purchase?

A: Well, we have to work that out together and it sometimes changes based on our buyer’s needs if we accept them based on what the pre-screening tells us. Typically the term is 36 months. We are conservative investors and do not like to over-commit. Our buyers tend to be ready to qualify for conventional loans in 18-24 months. We like to add the extra buffer of 12 months just in case we have any hiccups, but our commitment to you will be kept, regardless of what happens to the buyer.

Q: What do you mean when you say you “staying in the middle”?

A: What we mean is we’re definitely not going to live in it so we purchase from you on a lease purchase and then resell or sublease to our buyer that we know can get this cashed out within an acceptable time frame. This way, we remain as the principal and you collect from us, not our buyer. It also means that all issues that come up are our issues…not yours and we’ll be working with the buyer to get it all cashed out. 

Q: If I’m not paying you, why do you do this and how do you get paid?

A: When we stay in the middle, we get paid a few different ways but typically (1) we raise the price enough to cover our fee, (2) we create a monthly spread on the difference between what is needed to cover PITI (principal, interest, taxes and insurance) and what we charge the buyer, and (3) sometimes we get more when they cash out. There is no deal that is like another. We take a fresh look at your situation and provide you with the best option.

Q: What kind of guarantee will I get that you’ll cash this home out?

A: Well, our NationalPropertyTeam buys several homes per month and has been in business for 25+ years with an A Better Business Bureau rating. In addition to that, you can see all the other sellers on our national site and what they had to say about successful deals with us. Of course, we’ll have no reason to go to an agreement with you if we didn’t intend to honor our agreement. We don’t get paid unless you do and it’s highly likely you’ll get cashed out before the term ends. If this is something that keeps you up at night, maybe it’s not a good option for you. We want to make sure that you are comfortable with the concept before we proceed further.

Assignment

Q: What do you mean by assigning back the buyer to me (AO)?

A: We mean that we run our normal tenant/buyer search and vetting process. We make sure that the buyer is acceptable to you and we have them sit down with our attorney to sign the contract. We then turn around and hand you the complete buyer package and we part ways.

Q: How long a term are we talking about on an assignment deal?

A: It is hard to tell until we locate a buyer that is acceptable to you. Once the buyer is ran through our screening process, we will know when they will be mortgage ready and at that time we can discuss length of term. We typically like to see 24-36 months, but if the buyer is found to be mortgage ready in 18-24 months, they can close sooner.

Q: If I’m not paying you, why do you do this and how do you get paid?

A: We raise the price slightly and we get paid a portion of the non-refundable deposit that the tenant/buyer pays. Even in this situation when we get paid upfront for finding the buyer, you will still net more for the home due to the slight increase in price, you get to keep the spread created and you benefit from principal pay-down until buyer cashes you out.

Q: What kind of guarantee will I get that you’ll cash this home out?

A: If together we approve the family to move in, you’ll get their personal guarantee plus a percentage of the down payment we agree on. If you don’t think they are capable of getting cashed out after reviewing their whole package, their credit screening file, etc. we assume together we won’t accept them. We don’t bring you buyers that we don’t think will get us to the finish line.

Owner Financing

Q: What is Owner Financing?

A: Well that simply means you sell to us with terms and we make monthly payments until we refinance or the term ends. We typically do a minimum of 48 months on those types of transactions. The longer term we agree upon, the more premium we can pay on your property. You’ll have a recorded note and mortgage on the property and a personal guarantee from the buyers who will also put up a down payment or we wouldn’t consider them. We can even pay a premium and make monthly principal only payments so you’re not reporting any interest income and you get top price.

Q: How long a term are we talking about on Owner Financing?

A: Well, we have to work that out together and it sometimes changes based on the buyer’s needs if we accept them based on what the pre-screening tells us. We like to see 48-60 months but let’s work that out once we know which option we’re going with. For a longer term we pay a premium over market price.

Q: What kind of guarantee will I get that you’ll cash this home out?

A: Well, our NationalPropertyTeam buys several homes per month and has been in business for 25+ years with an A Better Business Bureau rating. In addition to that, you can see all the other sellers on our national site and what they had to say about successful deals with us. Of course, we’ll have no reason to go to an agreement with you if we didn’t intend to honor our agreement. We don’t get paid unless you do and it’s highly likely you’ll get cashed out before the term ends. Keep in mind that you have the security of a first mortgage during this transaction. If this is something that keeps you up at night, maybe it’s not a good option for you and we can explore a lease/purchase whereby you don’t give up ownership until cashed out. We want to make sure that you are comfortable with the concept before we proceed further.

Q: I would need a big down payment if I’m transferring title. Can you do that?

A: It’s possible that we can get a good size down payment and it’s our main objective because it’s how we get paid – from the difference from what we collect and what we have to pay you. Sometimes in this process it’s possible for us to find a cash buyer. If necessary we can even switch to a lease purchase where you don’t have to transfer title, but usually buyers will put up more of a down payment with a purchase versus a lease purchase. As we explained, we usually raise the price high enough to cover our compensation anyway so you’ll get full price or close to full price and no commission!

Tenant Buyers

Q: Who is the typical tenant/buyer in your program?

A: We work with small business owners that have not shown a consistent income over the last two years and they need some seasoning in banks eyes. We also work with people that have a legitimate ding on their credit caused by a major life event – death, divorce, etc.

Q: What is your vetting process for tenant / buyers?

A: First, we have them run through a tenant screening program that looks at their credit history, complete background check including sexual and criminal history. Once their credit is evaluated, we have discussions with the buyer about their ability to afford the home and the amount of their non-refundable deposit (this makes them have skin in the game). 

Once we determine that they have enough deposit and tehy can afford the home, we have them work with a mortgage consultant that evaluates their mortgage rediness and will give us a mortgage ready date. Most times this falls in the 18-24 months range.

Once we complete this process, we will present the buyer information to you and if you determine that it is a good fit, we have the buyr sit down with our attorney and sign all the documents needed. 

We then turn around and present you the buyer package, we collect our share of non-refundable deposit, and we part ways.

Q: How fast can you locate tenant/buyers?

A: We usually only need 5-90 days and your house will get all our focus and substantial marketing budget and that’s assuming someone on our current buyers’ list doesn’t take it. Sometimes that happens in the first few days.

Q: I don’t want to be a landlord and have to evict or foreclose.

A: If our agreement with you is to find the buyer and assign them back to you (AO) you have to know that  we perform the most thorough check on our buyers possible before even presenting them to you and require a substantial down payment. They will have skin in the game and will behave like buyers not renters. We’ll review together and you’ll have final say and that will only be after reviewing the entire package with me.

What if?

Q: What if my home is currently listed with a Realtor?

A: In that case we cannot do anything yet with you as we don’t want to interfere with your contractual obligation, but if you don’t get the price you want in the time frame you want…or if you are unhappy with your realtor and cancel the listing agreement, then just give us a call and we can get it done for you fairly quickly and you’ll save the commission and sometimes even cover your closing costs.

Q: What if I need the cash out to buy another home?

A: Well, if you definitely need the cash out NOW to move to another property, there’s only one solution with us and you can use it as a back-up if you don’t sell on your own (or with your agent). That would be for you to go ahead and refinance the home and then structure the terms of a lease/purchase with us to cover that new loan.

Q: What if tenant/buyer cannot get financing?

A: We don’t set our buyers up for failure. We only set them up to succeed and we do that by pre-screening them for credit, criminal and sexual harassment to make sure they’re a fit. Most importantly, from that pre- screening we know how soon they can be mortgage ready and we structure the term to meet those dates. Let’s say that a life event happens (1%-3% of the time) and they have to leave (divorce, death, job relocation, etc.)- worst case is we can sell the property traditionally or we can procure another buyer to fit the timeline in order to fulfill our obligation to you. We handle everything so you do not have to worry.

Q: What if my home gets trashed?

A: You’re describing a renter. We don’t rent our properties. We require a down payment that ranges from 3%-10% and with that kind of financial commitment we do not get people beating up the home. They treat it as their own – these are buyers that move in and do everything they would do if they owned it except their loan is not in place yet.

Q: What if my lender doesn’t allow your purchasing my home Subject-To?

A: It’s highly unlikely. We’ve never ever had that happen because lenders just want to get paid monthly until the loan is due. That’s why they made the loan in the first place. As long as they’re collecting regularly it would be a terrible business decision on their part to call the loan due and chance not getting paid. If it really bothers you, though, we can lease purchase it so title doesn’t transfer until you’re cashed out.