Foreclosure in 10465>Question Details

Reginebelle, Home Buyer in Bronx, NY

Rent to own homes

Asked by Reginebelle, Bronx, NY Wed Jun 26, 2013

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Answers

12
Good morning Reginebelle,

Rent To Own is a better deal for the Seller than it would ever be for a potential Buyer.

The basic concept is finding a way to "force" savings towards a down payment by including a portion of the monthly rental that goes towards that savings. You pay your rent every month and your Landlord deducts a pre-determined amount to hold in a special bank account, called an "escrow" account. Your Landlord holds that money until you have saved up enough---through this "forced-savings" method---to meet a down payment to purchase the home.

The terms of the purchase price, including the down payment amount, and the amount to be set aside from the rental for down payment, are all set down at the time of lease signing.

It's all about helping the renter/tenant save up enough money for a down payment to buy a home (in this case, the one you're renting). But this is a better deal for the Seller because he gets to lock in a purchase price and a buyer today for a future sale.


Saving money for a down payment? Well, heck, you can do that on your own.


If you are dedicated to the idea of buying your own home, you can create your own savings plan to save up enough money for a down payment. And when you have saved up enough for a down payment, if that takes a year or two or more, YOU get to decide on the price you're willing to pay for the house at that time based on current market conditions. You won't be locked in to a price that may be a lot higher than what the house is worth in the future.

With Rent To Own you'll be locked in both to the house and to the price, even if it takes you 3 years to save enough through the forced savings of the rent payments. What happens if three years from now your life situation has changed? Maybe you need a bigger/smaller home. Maybe your employment has relocated. Maybe your credit or income is insufficient to qualify for a mortgage loan.


Find a way to save up on your own; not with Rent To Own.


Sit down with a local Mortgage Banker and get yourself prequalified, too. You may find you're better qualified than you think you are, and, if you're not, at least you'll know how much loan your income and credit qualify you for, and how much you have to save towards down payment and closing costs.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
2 votes Thank Flag Link Thu Jun 27, 2013
Keep in mind that rent to own can be risky and one could stand to lose a bit of money, therefore do inform yourself well, and consider consulting with an attorney who specializes in real estate beforehand. If you haven't done so yet, visit with any licensed loan officer, see if you can buy outright...
1 vote Thank Flag Link Wed Jun 26, 2013
Lease/Option
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!

The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.

There is no FORM printed by anyone; there are just too many variables.
The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?

This is the Ultimate Caveat Emptor!

Good luck and May God bless
1 vote Thank Flag Link Wed Jun 26, 2013
Good morning Regine,

Unfortunately, finding a rent to own home is rare in this market. Yes, there are pros in rent to own properties but there are also various cons. It is important that you evaluate your particular situation and decision for wanting a rent to own property. If you find that you do not know much about this, it would be best that you speak to a Real Estate professional who can better advise and guide you in the right direction, considering your unique situation. If you need further assistance, please do not hesitate to contact me directly at the number provided below, so we may find the right solution for you, together.

Bryant Mero
EXIT Realty Search
917- 327-7870
Bryant@exitrealtysearch.com
Certified Buyers Representative

If you thought my answer was helpful please give me a "Thumbs-Up" or "Best Answer"

Good luck!
Web Reference: http://bryantmero.com/
0 votes Thank Flag Link Thu Sep 26, 2013
Good morning Regine,

Unfortunately, finding a rent to own home is rare in this market. Yes, there are pros in rent to own properties but there are also various cons. It is important that you evaluate your particular situation and decision for wanting a rent to own property. If you find that you do not know much about this, it would be best that you speak to a Real Estate professional who can better advise and guide you in the right direction, considering your unique situation. If you need further assistance, please do not hesitate to contact me directly at the number provided below, so we may find the right solution for you, together.

Bryant Mero
EXIT Realty Search
917- 327-7870
Bryant@exitrealtysearch.com
Certified Buyers Representative

If you thought my answer was helpful please give me a "Thumbs-Up" or "Best Answer"

Good luck!
Web Reference: http://bryantmero.com/
0 votes Thank Flag Link Wed Sep 25, 2013
In my opinion one of the ways that you can find a rent to own home is to inquire with the landlord in the beginning of the relationship. For example, before you rent the home simply ask the landlord if they think they would be interested in selling in a few years. You will be surprised, how many home owners have it in the back of there mind. You can let them know that you are interested in buying, and if the renting relationship works well you are interested in buying the house. I think any sensible landlord who is pondering selling in the near future would jump at that idea. For more ideas like this contact me anytime.

Kathleen Collins
Exit Realty Search
3928 E. Tremont Avenue
Bronx NY 10465
718-664-5134
http://www.bronxhomeagents.com
0 votes Thank Flag Link Wed Sep 11, 2013
Reginebelle,


There is no set program for rent to own, this is at the discretion of the owner of the home. If you have more questions feel free to give me a call.



All the best,
Antonio Sanchez
Exit Realty Search
3928 E. Tremont ave
Bronx, NY 10465
CELL: 347-320-0673
BUS: 347-202-4965
SANCHEZEANTONIIO@GMAIL.COM
http://WWW.EXITREALTYSEARCH.COM
0 votes Thank Flag Link Sat Aug 24, 2013
Good morning.

Unfortunately, finding a rent to own home is rare in this market. Yes, there are pros in rent to own properties but there are also various cons. It is important that you evaluate your particular situation and decision for wanting a rent to own property. If you find that you do not know much about this, it would be best that you speak to a Real Estate professional who can better advise and guide you in the right direction, considering your unique situation. If you need further assistance, please do not hesitate to contact me directly at the number provided below, so we may find the right solution for you, together.

Bryant Mero
EXIT Realty Search
917- 327-7870
Bryant@exitrealtysearch.com
Certified Buyers Representative


If you thought my answer was helpful please give me a "Thumbs-Up" or "Best Answer"

Best of luck!
Web Reference: http://bryantmero.com/
0 votes Thank Flag Link Wed Aug 21, 2013
good day, please call me 2 6464-851-6799 to view, thank you
0 votes Thank Flag Link Thu Jun 27, 2013
good day, please call me 2 6464-851-6799 to view, thank you
0 votes Thank Flag Link Thu Jun 27, 2013
Its hard to find many rent to own options since the market is hot right now and there is plenty of opportunity to find a buyer. What exactly is your reason for wanting the rent to own option?
0 votes Thank Flag Link Wed Jun 26, 2013
I personally deal in Rent to Own homes. I deal specifically who want to sell their properties, but want to skip the Commission that may come along with the general sale thorough a realtor. As Mr. Thomas points out, you must be careful as in any other real estate transaction. However if the goal of the consultant involved is to create a win/win opportunity for both parties, then you are in good hands and 1 step closer to home ownership.

Feel free to contact me for any questions.
0 votes Thank Flag Link Wed Jun 26, 2013
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