Home Buying in Chicago>Question Details

Zazensky, Home Buyer in River Forest, IL

Why are "rent to buy" condo's so hard to find on the northside?

Asked by Zazensky, River Forest, IL Tue Nov 27, 2012

We have excellent credit, 'are retired professionals and this option would be perfect for us. Looking for a top floor condo (not hi rise) in 60613 0r 60640 with parking. Thanks

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Sohail Salahuddin’s answer
Hi,

Please let me know why you want to do a "rent to buy". I have been involved in many "rent to own" opportunities and very few work out. Let me know what your goal is and why, I can give you the guidance that you seek.





Sohail A. Salahuddin | Group Founder

Innovative Property Consultants Group | Sales and Leasing

http://www.innovativepropertyconsultants.com



Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 


O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

"Locally Known, Globally Recognized"
2 votes Thank Flag Link Tue Nov 27, 2012
Zazensky,

Most people in Chicago either rent or buy, not both in the same agreement. If your goal is to own and you are retired, what is preventing you from buying now while both interest rate and values are low?

All the best,

Ivan Sagel
312.515.7823
Ivan@atproperties.com
1 vote Thank Flag Link Tue Nov 27, 2012
Are you working with an agent? You aren't going to find too many (if any) options that are advertising sellers are willing to do this. Your agent needs to do a lot of homework and digging to find that match.

They are out there, they are not always "nightmares". I have a deal with that scenario right now that has been working out great for both parties. Don't get me wrong, there was a lot of work between myself, the other agent and attorneys but we did it.

Good luck in your search!

Kelli Johannesen-Logan
@properties
C 773 255 2691
kelli@ChicagoUrbanLiving.com
1 vote Thank Flag Link Tue Nov 27, 2012
Rent to buys are wastes. You should focus on either renting or buying. Not both. It never works out in the end. Someone ends up getting burned and it makes them upset.
1 vote Thank Flag Link Tue Nov 27, 2012
Hi Zazensky,

Hope that you are having a good day. Sorry that your having these issues, I am not going to go and bash your idea because it is a really good alternative for what you are looking to do. Part of the reason you are finding this option so hard to use is because you are speaking to the wrong people. Most of my colleges who have answered have only worked the conventional side of things and have either closed minds about doing anything that strays from the normal way or if they are open minded may have seen one and figured that is how everything is done. You really should look for real estate investors and talk to them to help you out. I am an investor, however I do not work in that area of town. I can check with some of my associates who may cover that area to see what they may have available if you want. Please either call or text 708-942-7039 so I can find out a little more of what your looking for and be better able to assist you. If you don't contact me I wish you the best of luck in your search and hope that you find what your looking for soon.
1 vote Thank Flag Link Tue Nov 27, 2012
Dear Zazensky,

I feel the broker who said you are desperate was being a little harsh not knowing the specific reason you want a rent to own. You specifically asked about zip codes 60613 and 60640 these two zip codes are desired areas to live in and if a Realtor and owner have done a good job they have priced the property at price that it will sell in a reasonable amount of time. Therefore, owners in these zip codes really have no need or incentive to do owner financing.

Since you have excellent credit why wouldn’t you simply purchase the property when interest rates are at an all time low? Owner financing will generally be at higher rate because they are incurring all the risk.

I am just keeping my answer simple.

Best of Luck,

Manuel Brown, Broker
iMove Chicago
1 vote Thank Flag Link Tue Nov 27, 2012
Probably because most people on the northside are civilized.

Seriously, rent to buy, in most respects, are generally found in areas where many prospective buyers might have difficulty getting financing, which is to say, not the majority of the Northside.

On top of that, for every solid deal you hear that is a rent to buy, you'll hear five times as many horror stories. You need to do a lot (you can capitalize that) of due diligence to ensure you are involved in a straight forward transaction (get a good real estate attorney).

Based on where I think you might want to live, check out the abundance of relatively cheap condos on the Lake, north of Foster running up toward Devon, along Sheridan. Just buy the thing outright. The prices are so cheap you'd expect to find them in 'rent to buy' neighborhoods!
0 votes Thank Flag Link Tue Dec 4, 2012
send me an email at jmichaels@remax.net and we can discuss
0 votes Thank Flag Link Fri Nov 30, 2012
Hello. Rent to Own options are rare and I highly recommend you avoid them because the terms often only favor the Seller and usually become very complex.

I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.


Wishing you all the best,

De Vonte Williamson , LSA
Proudly Serving Long Island
Coldwell Banker Residential
(631)384-3695
http://cbmoves.com/DeVonte.Williamson
http://devontesellsny.wordpress.com/
DeVonte.Williamson@cbmoves.com
"I Stand Behind Getting You Results!
0 votes Thank Flag Link Tue Nov 27, 2012
Rent to own was only 'talked about', not even popular, during the R E bust a few years ago. They are a disaster just waiting to happen and not a good option for either side. The market has changed so you are not likely to ever find one.
0 votes Thank Flag Link Tue Nov 27, 2012
Zazensky-

On the Northside, the properties that you would want to live in usually sell or rent conventionally. The rent to buy option is available, but you may not find the right place, right location that is also a good deal. In a buyer's market you are usually meeting the seller's terms to put a deal like this together.

If you are really committed to rent to buy, widen your search and settle on something outside of your "box". From your comments, it looks like you are pretty dialed in on what you want. Living expense will either be rent or loan payment; find a place to call home and keep the rent to buy as a low percentage option.

Good luck - please let me know if I can help further.

Erik Sachs
RpV Realty LLC
Cell 773/368-5515
Email esachs@rpvinc.com
0 votes Thank Flag Link Tue Nov 27, 2012
there is no market for this in Chicago.. just rent - let me help you
0 votes Thank Flag Link Tue Nov 27, 2012
Well, there should be a market for it. Sign a one or two year lease, with an option to purchase at the end of the lease. Owner gets their property rented to stable people for 12 or 24 months at a good price and renter/future owner finds out if the place is to their liking. I bet there are many people out there who feel the same way.
Flag Tue Nov 27, 2012
My guess is that you could find many willing sellers if your agent just asks. However, it should only be used as a last resort for you. You would likely be better off legally and financially if you just take some time to save up money for a year while renting. I would be happy to discuss the pitfalls involved in a rent to own or lease purchase situation.
0 votes Thank Flag Link Tue Nov 27, 2012
Thanks. The down payment isn't the problem - its moving into a place and a month later you find out you don't like it and have to turn around and sell it and, yes, we've had to do that.
Flag Tue Nov 27, 2012
Lease/Option
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!

The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.

The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?

This is the Ultimate Caveat Emptor!
0 votes Thank Flag Link Tue Nov 27, 2012
I think it would be a good deal for both buyer and seller and, no, we aren't desperate- far from it. just timid about committing to a place without giving it a test drive, neighbor-wise, buliding-wise, etc. Surely there must be some soul out there who has a decent property to sell and would like some solid, serious buyers who are ready to purchase now.
Flag Tue Nov 27, 2012
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