Feel free to contact me to discuss further.
Broker / Associate
Long Beach, CA
Please think of renting and buying as TWO very different things.
If you are in a position to buy, why waste time and money renting? with record low interest rates and programs for first time buyers that require small down payments the time to buy is now!
If you enter into a rent to own deal, you agree to a purchase price with the seller. What happens if at the end of the lease term the home is no longer valued at the agreeed upon price. What if the seller ends up going into foreclosure? What if the seller has a big life changing event and no onger wishes to sale the property?
As you can see there are way too many what ifs in rent to own deals.
I suggest you contact a lender and see about getting pre approved for a mortagage loan. If the numbers line up...go ahead a buy!!!!
Much success to you!
Kawain Payne, Realtor
Why Rent , why not to purchase it now? If you can not qualify and you just need time to establish credit worthiness that can be a good option. However, why would a seller/landlord sell to you when they can just rent it out? The owner will have to benefit from this arrangement.
Here is a sample that helps both parties. Let's say current rent/fair market value (FMV) in the area is $1,600 - I know of one for rent at 1775 Ohio 2bdrm condo. You can offer to pay the owner/landlord $1800. So you are paying $200 more a month. Which "IF" you opt to purchase than $2,400 will be reimbursed or credited to your towards your closing costs. If you OPT NOT To purchase, that will be money you forefit for not purchasing.
Also, what price would you purchase at current FMV or in the year when you purchase. The market is going up so a seller/landlord will want to use the upswing value since it's increasing...... And you obviously would want to use the value NOW. There a so many variables to consider.
Usually in this market, the best scenario for you is to just rent until you can save money and buy in the future. I hope I clarified some things. Call me for more details, I need to know your motiviations and more details to be able to answer this thoroughly.
Lesley Harris, Realtor
Cal Tex Properties & REO
Your best option is to sit down with a lender to set a plan in action so that you can discover where you are today financially and what options are available to you right and/or how you can position yourself to become a future home owner. The key is to speak with highly intelligent and well versed real estate lenders/agents who know the business. Stay away from the average agent with little knowledge of the market and how real estate really works.
Good luck and I am here for you should you have any future questions.
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.
There is no FORM printed by anyone; there are just too many variables.
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!
Good luck and May God bless