There are very good reasons that Texas law does NOT allow us as Realtors to be involved with lease to own transactions. In other words, it is NOT A GOOD IDEA due to the many complications that can arise and, potentially, end up in lawsuits.
Your best strategy is to simply lease until you can accumulate enough money for a down payment (talk to a lender of your choice about the various programs that may not require a down payment) and/or get your credit score in tip top shape so that you can take advantage of these low rates.
If you have a large enough down payment (e.g. 10% or more), then you MIGHT find a seller willing to provide seller financing, which is different than a lease to own transaction. If you pursue this strategy, then expect that the interest rate would be higher than most traditional lenders and the seller will likely be much less willing to negotiate the price.
There is an old adage in the real estate business..."My price, your terms"...or "Your price, my terms". Sellers who offer financing consider this Their price and your terms. The other end of the spectrum is to pay all cash. Then you can typically negotiate the price.
Good luck. Be cautious. Be SMART.
Brent Rice, Trulia Top Recommended Broker (Pro & VIP)
The Rice Group, Inc.
(If my answer addressed your question and was helpful, please indicate by giving me a THUMBS UP or BEST ANSWER)
Buying the property off a lease option requires two agreements. First, you create a lease agreement. It is writing as if you were simply going to lease the property. This is a standard document.
Next, you will need a Lease Purchase Agreement (or Lease Option Agreement) which spells out the term, option fee and rent premium. The term for the lease purchase is generally between 1 - 3 years. This document usually comes with a option fee which is a non-refundable deposit which becomes part of the down payment. This is usually 1 - 3% of the purchase price.
You should also be prepared to pay a rent premium. This is an amount above and beyond the rent amount and is applied to the down payments of the property.
If you go this route, make sure you have a real estate attorney prepare your documents to protect both parties. It can be done and it has been done - but like any financial transaction - it needs to be done properly to work.
It's often a big problem for both buyer and seller.
If you want to rent....just rent....
If you want to buy,....buy...
but don't mix the two up.
You can always make an offer to buy later when you are ready. Maybe on this house, but maybe on another.
Seems like about 90pct of the time the rent to own thing is a scam.
1. Fixed rate on your mortgage never vs. rental increases.
2. Annual tax write off's confer with your CPA
3. No more landlords telling you what to do
4. Real estate when you retire home is paid off ... live FREE of any further payments EXCEPT for insurance and taxes.
Contact my office today where I can show you many amazing homes work with your family specifications.
Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
Follow me on Facebook