Home Buying in Chicago>Question Details

Cheryl Kenne…, Renter in Chicago, IL

Where can I rent with option to buy a Home in Chicago, IL?

Asked by Cheryl Kennedy, Chicago, IL Thu Oct 25, 2007

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Answers

16
Hi Cheryl,
There are many sellers who want to get rid of their property but haven't found a buyer and would now consider a Rent-To-Own scenario. This is a free service that any real estate agent would provide. There is no reason to go to a service company that would charge an upfront fee of $2,000. Working with a good buyer's agent, perhaps an ABR (Accredited Buyers Representative) you would find the place you're looking for with the terms that suit you best without paying upfront fees. The buyer never pays. Get yourself a good agent, specify your needs and get the home of your dreams-- even if you want to rent to own, it saves you time and money to trust this to an expert who has your best interest at heart.
3 votes Thank Flag Link Thu Nov 6, 2008
Lease options and rent to own scenarios are NOT recommended for a variety of reasons. They are usually skewed towards the lessor and not the leasee. Always use a land contract, which is equally protective to both parties. A land contract is a sales contract-with a closing date in the future, usually 12 months. In the meantime, you will pay a monthly payment and own the property-not rent it. The seller retains title until you execute the contract at the end.
2 votes Thank Flag Link Tue Dec 4, 2007
Hi Greg,

The purpose of the TU/TD is to allow readers to rate your answer as either 'useful' or 'not useful'.

Once in a while we will get a random 'TD Bandit" who takes pleasure in giving a TD for apparently no good reason, even to the seemingly best and most useful answers.

Other times the question asker just may have not found your answer helpful, and will just give a TD without providing a reason.

As to your specific answer that was thumbs-downed, I can provide a guess as to why it may have occurred: Trulia's guidelines prohibits 'self-promotion'. In this case, your answer not only did NOT answer the question-askers specific question; you instead offered to preapprove her for a mortgage.

I did not thumbs-down you, but somebody else may have for the reason I gave above.

Either way, it might behoove you to read Trulia's guidelines so you can better understand one's possible motivation for TD-ing you.
2 votes Thank Flag Link Sun Nov 11, 2007
Patti Pereyra, Real Estate Pro in Chicago, IL
MVP'08
Contact
Hi Cheryl:

There are several avenues you can take, i.e., search Craigslist and other local classifieds, work with a Realtor who can approach long-market time homes on the MLS to see if the sellers would be willing to strike a rent-to-own deal.

I have to advise you that you should be very careful about what type of lease/purchase situation you get yourself into. There are 2 types: Lease Option and Lease Purchase. They both will require to you pay above-market rent so a portion of your monthly payment can go towards your down payment, they both will require some initial money upfront (i.e., 3 months rent), but the lease OPTION is just that: You have an OPTION to purchase. Per your agreement, if you choose not to exercise the option to purchase by the date set forth in your agreement, you just lose your initial deposit money but are not subject to any other penalties.

With a lease PURCHASE, you actually enter into a lease and purchase agreement at the same time, with a sales price agreed-upon upfront and a closing date set for sometime in the future to actually consummate the purchase. With this type of rent-to-own agreement, you had better make sure you are qualified to obtain a loan when the time comes, because should you back out, you will be in default.

Either way, be aware that should you consummate the purchase whether through a lease option or lease purchase, make sure you work out the numbers in advance. In Chicago, rents are usually cheaper than ownership, since they do not take into account taxes and assessments and other ownership operating expenses. Know that when the lease part of your agreement expires, it is very likely your monthly payment will go up. Be sure you qualify for it and are capable of paying it by proactively speaking to a mortage broker prior to getting into any agreement.

And one last word of advice: Make sure you have an experienced real estate attorney drafting the agreements/contract for you, or at the very least reviewing the documents drafted by the seller/owner.

Good luck.
2 votes Thank Flag Link Thu Oct 25, 2007
Patti Pereyra, Real Estate Pro in Chicago, IL
MVP'08
Contact
IF YOU ADVERTISE MANY HOMEOWNERS WILL FIND YOU.JUST AS BAD AS YOU WANT TO RENT THE PROPERTY A LANDLORD WANTS TO RENT IT TO YOU.ADVERTISE IN THE PAPER THAT YOU ARE A GOOD TENANT THAT SEEKS A RENT-WITH OPTION OPPORTUNITY.BE PREPARED TO GIVE SOME HISTORY ABOUT YOUR PAST RENTAL LOCATIONS. ROBERT IF ALL ELSE FAILS CALL ME 708-743 3299 PROPERTY ACQUISITION GROUP
0 votes Thank Flag Link Mon Nov 10, 2008
Go to Rentworks USA Corporation in Matteson, Illinois. They will even meet you at you job or home to sign you up. Visit them at http://www.rentworksusa.com, they work with people with Bad Credit only! You can go out with their realtor, pick the home you want and they will secure it for you or co-sign for it, and they do moderate to luxury homes up to a million. There is a cost for their service up front, but it is worth it, I believe it is $2,000 but there often do discounts to work with people. You can email them at rentworkschicago@aol.com or google them. Laura D.
Web Reference: http://www.rentworksusa.com
0 votes Thank Flag Link Thu Nov 6, 2008
I used Rentworks USA Corp. There is a fee for the service, but they let me pick my own home and it only took a couple weeks to do it. It is work a call to them if you have bad credit and want a Lease Option. Great Company to use. I even had input on my deal and it benefits both me and the owner of the home.
Web Reference: http://www.rentworksusa.com
0 votes Thank Flag Link Wed Mar 12, 2008
Hi Cheryl,
I agree with Patti that local classifieds such as Craigslist, Chicago Reader, Tribune, etc are the best options to pursue proactively . Whether listed with an agent or "for sale by owner", at least start the conversation by bringing up a lease option.
With today's slower market especially, sellers are eager to generate some income, and even more so if the property is vacant. So you might be surprised how many good responses you get by showing interest. The contracts supplied by a listing agent are pretty straight forward, but as always, just make sure an attorney looks over anything you are signing first.
0 votes Thank Flag Link Tue Nov 13, 2007
I have a brand new condo in the 60661 zip code that I am planing to rent with/without the option to buy. Send me an email at sangraj@yahoo.com if you are interested.
0 votes Thank Flag Link Tue Nov 13, 2007
RENTWORKS USA CORPORATION IN MATTESON, ILLINOIS IS GREAT! CALL THEM 708-983-1613 OR 866-854-7153. http://WWW.RENTWORKSUSA.COM
0 votes Thank Flag Link Mon Nov 12, 2007
You will have Great results with Rentworks USA Corporation in Matteson, Illinois, I believe move in is just 1 Month's rent and Security Deposit and the Fee for Service. It is a Lease with Option to Buy Program, their number is 708-983-1613 or 866-854-7153. They have availablities all around Illinois.
Web Reference: http://www.rentworksusa.com
0 votes Thank Flag Link Mon Nov 12, 2007
I live on the south side right off of the Metra Rock Island line. the neighborhood is 'Beverly/Morgan Park'. there are a lot of homes for sale/rent. I know of three with "rent to own" signs in the yard. The zip code is 60643. I hope this helps.
0 votes Thank Flag Link Sun Nov 11, 2007
How does the thumb thing work? I recieved a thumbs down on my response without any explenation and would appreciate knowing why.

Thank you -
0 votes Thank Flag Link Sun Nov 11, 2007
Why do you wish to lease before you purchase. In today's buyers market you are likely able to find sellers who will help pay most/all of your closing costs and then you can enjoy the tax deductions of mortgage payments right away rather than non-deductible rent. Please let me know if you are interested in being pre-approved for a mortgage loan. Greg Zaccagni
0 votes Thank Flag Link Sat Nov 3, 2007
Hi Cheryl,

Your best approach to find a property that you can do a lease with option to buy is to speak with Deborah Server at Rubloff Residential Properties as she and I have teamed up to lease and sell properties at the same time, a service that investors and sellers really like as they are concerned about their cash outlay. Most of these people are condo sellers and given the current market they are more apt to do a lease/option situation. Sheldon Salnick
Web Reference: http://sheldonchicago.com
0 votes Thank Flag Link Fri Nov 2, 2007
Hello Cheryl,

Contact a local Real Estate office as they will be able to direct you to listings that may are willing give you an option to buy. Also you can research the newspaper as many people advertise lease options in the newspaper.

Good Luck
Ken Herrera
Century 21 Infinity
http://www.c21infinity.com
0 votes Thank Flag Link Thu Oct 25, 2007
I'm in the market to buy and there are apartments I have rented that I wish were condo. Sometimes as a renter you are intimidated by buying because of all the disadvantages you read about. Rent to buy is a way to "test drive" an apartment. And apartments in Chicago have gotten to high in rent, it's better to try it out before you actually buy it.
Flag Tue Dec 31, 2013
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