Home Buying in Santee>Question Details

Monika.tobin, Renter in San Diego, CA

How can I find a home that I can rent to own?

Asked by Monika.tobin, San Diego, CA Thu Mar 15, 2012

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Honestly, why would you do that? You pay higher than market rent, you likely will pay more than the home is worth, and you can get a traditional loan at very low interest rates these days. You can email me privately (caragrow@gmail.com) if you don't want to share details publicly. I don't ever recommend rent-to-own to potential buyers/renters as I've had experience working on the property owners side of these deals and know how they work.
0 votes Thank Flag Link Thu Sep 13, 2012
Call us anytime. We'd be happy to help you. Joseph Arendsen. 760 672-0714. Or email me at onthelevel@cox.net
0 votes Thank Flag Link Fri Mar 16, 2012
I agree with everything Cory says, in the last 20 years I have not financed one, not even ONE lease option or rent to own transaction. I have talked to scores of “buyers” that rent to own did not work out for them and they lost a ton of money. Do your research first, the link below may contain some information that will keep you from getting hurt, good luck,
0 votes Thank Flag Link Fri Mar 16, 2012
A lease option is when a renter signs a lease with an option to purchase a property for a specific price within a certain time frame. A portion of the rent is applied to a future down payment - if the option is exercised. If it's not, and the investor who will make the deal with you (this is an investment technique) will bank on buyer not being able to qualify for a loan by the end of the option period. The investor will try to make the option period as short as possible, while you should try to make the option period as long as possible so you have a better chance of qualifying.

For sellers, lease options give several advantages, including higher than market rent, top-market value for the property and tax-free use of the option consideration until the option expires or is exercised. Also, the renter is more likely to treat the property like an owner, tax-free use of option consideration until the option expires or is exercised.

Another option for you would be seller financing, but it comes with a higher interest rate. Higher interest = less house.

Or, better yet, wait a year or two and buy with an FHA loan. You only have to save 3.5% for a down payment, and possible closing costs if the seller won't or can't pay. You no longer have to wait to save 20%. And, your credit doesn't have to be stellar, just 620, but the better it is, the better your interest rate will be. So why take a chance with a lease option if you have to wait to buy anyway? Just buckle down, save your money, because you'd have to anyway, and work on your credit if you need to. I can send you some good info if you'd like it.

Couldn't any of you guys have given him some options? Lease options SOUND good, but they're usually most beneficial to the seller.

Regards,

Cory La Scala, REALTOR
Independence Realty
0 votes Thank Flag Link Thu Mar 15, 2012
There are 66 homes in San Diego County that have the Lease Option as one of the terms that the seller will consider.
What area and price range are you considering? With interest rates so low and so many low down payment program available it may also be worth considering an outright purchase.
I would be happy to discuss your options and send you information on the homes that are available for a lease with the option to buy the home.

I am never too busy for your referrals

Jerry Heard
Your Broker
The San Diego Property Shop
http://www.TheSanDiegoPropertyShop.com
jerry.sdps@cox.net
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
CA DRE # 00648687
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0 votes Thank Flag Link Thu Mar 15, 2012
Thanks for responding. I am looking in Santee. Price range around 100,000- 200,000 + I am a first time buyer.
Flag Thu Mar 15, 2012
There are a few websites that come to mind like http://www.irenttoown.com/California and http://www.usleaseoption.com/rent-to-own/California

However, I always suggest using a local agent in your area who knows the market. Your agent can pull up properties that have lease purchase or rent to own as financing options.
0 votes Thank Flag Link Thu Mar 15, 2012
call me for assistaance at 760 622 6855 or email maureen@landangel.com.. We do lease option lease purchase rent to own seller financing and more..
Web Reference: http://www.coastal.biz
0 votes Thank Flag Link Thu Mar 15, 2012
Ask your agent to search for homes where the seller will do a carry back. If you need some help, let me know.
0 votes Thank Flag Link Thu Mar 15, 2012
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