Rent To Own homes are seen by some as the answer to their prayers while others may see these offers as a scam. The answer is both can be right, but rarely is this true about the same home.
Why Rent To Own?
There are many reasons why you might consider a rent to own home. If you have filed for bankruptcy recently, you are facing a minimum waiting period of 2 years. Perhaps you have poor credit and are working on improving it. Or maybe you are expecting a very large sum but need the home right away.
How Does It Work
For this to work out to a best resolution, both parties need to be willing and flexible. The landlord-seller needs to understand that in order to sell the home they have to be willing to compromise on some expectations. The tenant-buyer needs to understand that they can’t expect the same level of negotiation that comes with buying a home with normal financing or cash.
Both parties are entering into a potentially risky situation. The key is to accept that neither can expect to eliminate risk altogether. For that to happen, the other party would be taking on all the risk. This is never a good situation.
All parties to such a transaction will be well served to get professional help. This can be a Realtor who has, and can demonstrate, extensive experience in this area. Or you can hire a real estate lawyer who has done these. You need this help simply because there going to be many details that you will overlook or not even expect. An experienced professional can anticipate these issues and write a contract that addresses them to everyone’s satisfaction.
Where can you expect to be able to enter into such a deal? There are homes for sale that offer rent to own as an alternative. Additionally, there are intermediaries that will do a rent to own on the home of your choosing. So even if the seller is not interested in doing the rent to own with you, these companies will buy the home and then rent to own it to you.
Whether you want to find homes, lawyers or intermediaries, or simply want a realtor to help draw up a contract, contact me at 760 622 5087 or [email protected]