Transcript: When buying a home using the rent to own method, you are renting as you normally would with a traditional home.This is the same as any other house you have rented in the past. The main difference is, you also have the option to purchase the house within a certain time-frame.Basically you find a home that you want to buy, but instead of buying it right away you simply rent the house.While you are renting you will have time to save money, improve your credit, decide if the … [Read more...]
Difference Between Rent To Own and Owner Financing Homes
It is very important to know the difference between owner financing and rent to own.First a brief overview of rent to own, which we explained in the previous video here and then we will explain owner financing and how it works.In a rent to own purchase, which can also be called a lease option, lease purchase, lease to own, rent to buy, or the like, you as the buyer, or tenant, have the option to purchase the home at any time during the rental period.This means you have the legal … [Read more...]
Slow Housing Market Spurs Creative Rent to Own Homes Solutions
With a slow housing market, offering rent to own homes is becoming a more popular solution for sellers.Miami Realtor, Izzy Buholzer, is a perfect example. Buzholzer is using this creative solution to help both buyers and sellers create win-win solutions. Buzholzer states:“Many people want to own their own house or apartment but are just not ready to do it immediately. If you offer your property as a ‘lease-purchase’ or ‘rent to buy’ then you will get more responses to your … [Read more...]
Rent To Own Home Scam – Seller Says They Are In Africa
I send a fair amount of emails to homes listed on Craigslist to see if sellers would be interested in offering their home as a rent to own.There Is A Scam Going On Right Now! People are posting scam Craigslist listings to try and elicit tenants or buyers to mail them a check for first month's "rent" on houses they don't even own.Below are a few warning signs of fraudulent property listings:The sales price or rental amount is too good to be true. The homeowner only wants to … [Read more...]
What if my rent to own home was in foreclosure when I moved in?
Imagine This...You move into a rent to own home, pay an option fee of 3%, and make payments for about 6 months.Then, out of nowhere, you receive a letter in the mail stating that the homeowner is over 7 months behind on the mortgage and the home is being foreclosed on!You are furious and can't figure out what the seller did with the option fee and rental payments for the last 7 months.Unfortunately...If you end up getting to the point where the mortgage payments are 7+ months … [Read more...]
Did I Pay WAY too much upfront on my rent to own home?
How can you pay way too much up front? Easy...We get calls everyday from people searching for answers to questions about rent to own homes. The most common questions are how much upfront and how much per month.These are very reasonable questions because they are the most immediate concerns a rent to own tenant/buyer would have! Remember Though... One of the most important questions for purchasing the home is simply, “what is the purchase/option price.”If the option price isn't … [Read more...]
Can the seller change the purchase price with a rent to own?
If your lease and option agreements are setup correctly, NO. The seller can not change the sales price of your rent to own home.But be aware, some rent to own agreements include a clause that states the purchase price is increased by a small percentage every month, quarter, etc. until the tenant/buyer finally purchases the home.Usually the idea behind this small increase is to keep you(the buyer) motivated to buy the home as quickly as possible. Remember This is only true DURING your … [Read more...]
