Rent To Own Homes's Q&A

For an explanation, see the article, Rent To Own Explained. There are many sites that provide listings, explanations and strategies. One of them, JSC Rent To Own Homes offers free and open listings for both sellers/landlords and buyer/renters.

Just because the rent to own concept is not a very common way to do a real estate deal, it does not mean one should avoid it under all circumstances. The prices of homes are spiraling downward because there are fewer qualified buyers in the market. The key word in the previous sentence is "qualified". While there are many people who would like to buy a home and can afford monthly payments, they are not able to do so because they are not able to get a conventional mortgage. They are not qualified according to current bank standards. Many thousands of people who were qualified yesterday are not qualified today. This sudden downward shift in the number of qualified buyers has dramatically changed the supply/demand ratio in today's real estate market, and now it is the buying opportunity of a lifetime - if you are "qualified".No doubt the current economic crisis will pass, banks will get more realistic with their qualification standards and the supply/demand ratio in the real estate market will normalize. But home prices will also rise. Those who are able to take advantage of today's market will be rewarded handsomely. But, what about those who are not able to take advantage in spite of being capable and responsible?A rent to own strategy is one way you can take advantage of a buyer's market even if you are unable to get a traditional mortgage. With so many sellers in today's market that are unable to sell their home, there is a great opportunity to negotiate a lease that contains an option to buy the real estate for a fixed price (at today's reduced levels) at some point in the future when you would qualify for a mortgage. While there are some risks with this strategy, a properly constructed contract can, and should, benefit both buyer and seller.