Just because a few bad eggs are out there certainly does not muddy the water for all. I have ran into buyers that have lied to me, but I dont think all buyers lie. Same with Sellers and I have ran into somd other agents who will do any unethical thing under the sun to earn money, but that does not mean I want the state to outlaw realtors because some of them are bad.

This type of transaction is great in our market, we have two types: Lease option, which gives the tenant the OPTION to purchase, and lease & Purchase which means you WILL purchase at the end of the lease period. Most of those I have seen have closed. Our investors require them to enter a consumer credit counseling program and get with a loan officer that will halp them manage themselves in order to be approved for a loan at a later date. If you are careful about who you work with and put the needs of the client up front and do the right thing, then this is an excellent transaction, one that certainly works well in a market that is high in foreclosure properties. I have helped families get out of trouble and NOT lose their homes with this type of deal and I can go to sleep at night knowing that I did the right thing. I see no need to be afraid of this. The KEY is to get with an agent who UNDERSTANDS the type of deal and what the intended purpose is and who can keep their ethics all above the table and you should be fine.

I personally don't like this idea. In my experience no one ends up buying. This presents a problem as your contract normally obligates you to buy and puts your down payment at risk if you don't. If you want to rent --then do it, RENT. If you want to buy, then BUY, but don't mix the two. We've recently taken steps in Texas to prohibit these types of transactions. There are still people advertising such schemes and think they have a way around it, but the intent and content of the law is clear-NO RENT TO OWN. There's a reason for the law and that is that there were too many bad guys out there taking people's money in a lot of different ways.

I would hook up with a local agent who knows the ins and outs of lease purchase contracts. WE do it quite frequently, in the dayton area.