most Rent to Own properties are offered either by the owner (as in FSBO, with RTO possibility), or
by a Rent to Own specialist, which is usually an investor/wholesaler type of individual.
Most Realtors don't want to bother with anything other than a traditional sale, or a traditional
rental, so an RTO is too much work, with an unclear and lengthy path to any commission they may be due.
Occasionally an MLS listing will say Rent to Own is an option, but again, most Realtors you contact
to show you that property will try to steer you toward a traditional rental or sale because they are inexperienced in Rent to Own techniques.
There are some potential pitfalls to RTO, but there also are many reasons Rent to Own is a good fit
for both the buyer and the seller.
For those Realtors, sellers, and buyers who aren't as familiar and experienced with Rent to Own
transactions, the whole thing makes them uneasy, leading to many of the strong opinions voiced in
the other answers to your question.
I'm both a broker and an experienced Rent to Own specialist, and I have happily closed sales to
tenant/buyers on Rent to Own properties, a win-win for everyone involved.
I would be happy to discuss this further with you, and assist you in your search for the right Rent
to Own opportunity.
Please visit my website at http://www.MyHappyHomeSolutions.com for more info, or call me at 630-697-4500.
You ask, "Why is it hard in this market?"
Whether you are in Chicago or sunny Florida the challenge is the same. Those wanting to 'sell' are really wanting to be freed from the burden of owning that real estate. How can a owner be persuaded to continue carrying the burden and responsibly and postponing the clean start to the next chapter of their lives? This, however, is the situation that will prove beneficial for those who want to be future owners.
There is another arena with contains RTO and options. These are the ones you see ADVERTISED as such. The owners of this real estate have recognized they have in their possession a true cash cow, the goose that lays golden eggs, a treasure you will NEVER POSSESS, for all the reasons listed..cash cow, golden goose. By the time this truth become apparent to you, you will be $20,000 or more, poorer.
Now, here;s the rub. It IS known why you are tempted to take the hook of a RTO or Option. That reason is your credit will not allow you to buy a home. Historic data reveals in 3 to 5 years, when the option comes due, you still will not qualify because your resources become the golden egg for someone else. In the case of the homeowner, their misery was prolonged and the house is not sold because you still have bad credit and can not afford that house at the future value. In the case of the investor, they took your money and never intended to sell the house to you. NOW that is what I call HARD.
Knowing the outcome as most professionals have experienced and share with you now, under what conditions is it beneficial to you OR the agent to purse RTO or option?
As you know, or will discover, all roads return to the same spot. Exercise the discipline needed to reduce your expenses, lower your debt, live below your means, save money, increase your income and become qualified for a home mortgage. Attempts to circumvent this process fail and will prove costly. The path you choose is entirely up to you. The outcome, however, is not.
Work with a real estate professional in getting you on the path to credit worthiness. THEN the agent can create the right situation for you at the right time. The resources and effort required of the agent is not insignificant. Therefore only SERIOUS buyers should consider this highly customized solution.
A benefical RTO or option is hard to create.
What is even harder is hearing, "I told you so."
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
Palm Harbor University High School distirct
Mary Kay Laurent
Associate Vice President of Mortgage Lending
o: 773.516.6859 - m: 312.403.4150 - f: 773.328.1740
3940 North Ravenswood , Chicago, IL 60613
NMLS ID: 870598
The highest compliment I can receive are your referrals!
You should have an in depth conversation about your goals related to seeking these out, and get a complete overview on what is involved as well as costs related to this type of transaction.