A rent to own agreement gives the buyer control of a property, not full ownership, with the 'option' to purchase the property at the end of the contract period. Essentially it is a contract to buy a property with an extended closing date. That way you, as the buyer, have time to save a down payment, clear up any credit issues, and to line up financing. Typically, you, the buyer, will put down an option...
A lease option can work out beautifully for you as the buyer if you walk into the arrangement with your eyes open. We want everyone to succeed in their dream of homeownership, so here are three questions you need to ask yourself before you decide that renting to own is for you. 1. Will You Qualify for a Mortgage Later? Renting to own essentially pushes the purchase date out 12-36 months so that you...
Like all great agreements, renting to own is beneficial to both the seller and the buyer. But, let’s take a look at the advantages for you as the buyer. In a rent to own agreement, you, as the buyer, freeze the price on the home for a year or two in advance of when you’ve agreed to close on the purchase. Since most markets appreciate, you’re locking in a good deal with built in...
Being a tenant buyer is different than being a renter. In a rent to own agreement, since you’re both a tenant and the future owner of the home, you’re expected take greater pride in the property and have greater responsibilities towards it, and you’re expected to uphold your duties as a good tenant as well. While usually the mortgage, taxes, and large repairs are covered by the seller during the...
True, the American Dream sells home ownership as the ultimate benchmark of success, but it’s not true for everyone. Often times, it makes more sense to rent your home than to buy. What makes renting a better option? Renting, especially in today’s rocky housing market, guarantees: Flexibility – Leases usually run no longer than 1 year, while mortgages lock you down for 30...
When you rent, your landlord will be part of your life. That said, it’s imperative you ask the right questions before entering into an agreement with them. 5 (often overlooked) Questions You Absolutely Must Ask What’s the Condition of the Home? Is it held together with duct tape and a prayer? Or have major repairs been done in the recent past – ie: new electric, new pipes, mold remediation...
Foreclosures can be home run investments, but, if you don’t do your due diligence, they can just as easily be the investment you regret. First, consider the source. Today there are tons of online resources for foreclosure lists, but they are not all made equal. You want to make sure that the list you’re using (especially if you’re paying for it) isn’t an old list. All foreclosures are public...
When it comes to real estate, how can you differentiate the deals from the REAL deals – you know, the one’s that graduate you from dabbler, to legitimate investor? Here’s the thing, successful investors have one thing in common; they don’t buy everything that comes across their desk. They shop for the deal that makes sense to them. See, the secret is there’s no single definition of a...
Obviously everything we do as investors is geared towards closing deals. It’s obvious because if a deal doesn’t close, the money isn’t made. So we’ve got to close deals right? Right. But here’s one insight that, if you pay attention, will save you much grief. When it comes to closing a deal there’s no magic bullet, there’s no perfect script. No deal is ever the same because, in...
There’s the traditional route of selling your house with a realtor, and there’s the fast route. Which do you want to take? If you really want to sell your house, avoid realtor commissions, get a fair all-cash offer, and have a variety of creative selling ideas, working with a real estate investor is the path of least resistance. A realtor’s fee is in essence a marketing fee. You’re paying them...