Home Selling in Enid>Question Details

Tom In Enid, Home Seller in Enid, OK

How does a "rent to own" situation work?

Asked by Tom In Enid, Enid, OK Wed Oct 21, 2009

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5
Kelly West’s answer
Typically the tenant pays higher rent than market value, then that different is credited back to the buyer to be applied toward closing costs. There is also a time frame to which the tenant will to closing a loan. The length depends on the contract that both the buyer and seller agree to.
0 votes Thank Flag Link Wed Oct 21, 2009
If your home is paid off, this can be a great investment strategy in the Unique Enid housing market.
You might consider selling your home on a rent to own option and then buying a duplex.

You could then have income from the rent to own AND income from the "Grannie Unit" in the duplex and live rent free yourself .
So possibly have income from 2 rentals for a long time.

Some rent to own landlords in Enid rent to own until the tenant has paid the entire purchase price
then the deed transfers.

Enid is very unique and a really a great place for doing this because the cost of housing is very low and the need for quality rentals is very high, with Vance officer Pilots and Advance staff always needing rentals.
1 vote Thank Flag Link Mon Sep 20, 2010
how would one in the field of social work knowing that a large portion of your time will be spent on paperwork, how will you balance that with working directly with families?
0 votes Thank Flag Link Fri Sep 20, 2013
Rent to own is very simple... In basic terms, a purchase price is agreed on upfront, along with rent and a durations (1yr, 3 yrs). Then usually there is option money paid by tenant or buyer... Option money usually is what allows you to lock in the price ahead of time, but also give you the option to "walk away" if the house ends up being worth less at the end of your lease duration. Option money usually goes towards purchase price if buyer follows through and buys home, and is forfeited if buyer walks away from deal. It is a great tool for both sides, as it allows a landlord the benefits of leasing with the knowledge the tenant intends to buy the home, and it allows the buyer to lock in a price early, and take a "wait and see" attitude about the housing market. You can complicate things by adding rental credits each month, but what I have mentioned is a basic lease option or rent to own situation. Goodluck!
0 votes Thank Flag Link Tue Nov 16, 2010
Hey there Tom!

Since I'm kinda the Lease-to-Own guy around here i'll jump in.

I wrote down some Pro's and Con's of Lease to Own deals a while ago and you can search on my numerous comments about what is needed to do a Lease-to-Own deal. Here is the link to read it:

http://www.trulia.com/voices/Home_Buying/Is_lease_to_buy_a_g…

Don't let Real Estate Agents or people who aren't familar with them to scare you off from doing one. Many of them say something like........."that they heard from their neighbor's, cousin's, friend, who used to know this guy, who was once married to this woman who said that they tried it once and it's a scam".

I'm currently banging my head against the wall TRYING TO FIND SELLERS who will do a Lease-to-Own all over the country with spotty results. I have buyers all over the place but no houses to offer them. Sometimes I wonder if there are ANY people out there you actually NEED to sell. LOL

If you do decide to go this route, I'm pretty sure you'll have quite a few buyers on your doorstep asking you what you're offering. There are ALWAYS more tenant/buyers looking for houses than there are Sellers willing to sell.

Congrats at looking for other ways to sell your house!

Best of Luck,

Darin
Lease-to-Own Professional
Real Estate Investor
Web Reference: http://www.hhiinvesting.com
0 votes Thank Flag Link Wed Oct 21, 2009
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