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how about rent to own homes

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June 06 2013 - Bellflower
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As a buyer, or as a seller?  Two entirely different sides/positions...

Feel free to PM me if I can be of service--I am a local Realtor.

Best wishes from So-Cal and good luck
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June 06 2013
Great idea. You collect a large up-front deposit and higher-than-market rent.

When the time comes to buy, the buyer either can't qualify for the financing or if they can qualify, they realize that they have much better options than buying your place and so you get to keep the deposit and the higher-than-market rent.


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June 06 2013
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While the theoretical concept of rent with the option to buy may seem attractive, some of the realities are considerably less so.

Owners who will consider rent to own are very rare, so it will cut down your options for properties considerably.   I consider it much smarter to spend a year or two working on improving your credit and (if necessary) saving up a good down payment.   Yeah, it is tough to move but it even tougher to lose a lot of money attempting to buy.

Some features of rent to own:

1.  Down payment required - often substantial (say 10% or even 20% or higher) and is non-refundable if the potential buyer doesn't purchase.

2.  Monthly rental is above fair market rent, with the only amount going to purchase is the amount above the fair market rent.  This is also not refundable.

3.  If not qualified for financing at the agreed upon  time and price, then you lose everything. 

4.  The price is agreed upon at the beginning of the contract, and who knows where house prices are going.

5.  You still depend on the owner to pay their mortgage.   If they fail, you lose.

If you do get involved in this, please involve an attorney in the contract.


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June 06 2013
How about them. They are rare because they are horrible ideas and best left alone or you run a good risk of loosing more money than you think.
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June 06 2013
 
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how about rent to own homes
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