Rent vs Buy in 60031>Question Details

Leonard Brady…, Renter in Gurnee, IL

I am looking for a rent to own property is there anything like this available?

Asked by Leonard Brady Jr., Gurnee, IL Mon Mar 4, 2013

In Gurnee with 3 bedrooms 2 baths and would like a finished basement.

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i had a presentation at an office sales meeting one month ago where we were pitched on this investor group that buys REO foreclosures, improves the property and streamlines the rent to own scenario. They only buy in well regarded school districts and have 5 year contract in which at any time you can do the buy out option at a predetermined price. i beleive it had a 5% escalation every year so there is incentive to buy it at your earliest convenience, but you can treat it as a straight rental or exercise the option. I can check to see what they have going on in Gurnee. Plus if they know they have an interested party, they will act as the buyer on the house you like and rent it back to you.

Before the presentation never heard of such a thing and would have agreed with other agents, that rent to own on a case by case basis is hard, seller has no incentive and seller not sohisticated as to figure out what to price it at for a future 1-5 years hence. They are doing this in Las Vegas and CA, expanding to IL and most havent heard of them, but seems legit.
0 votes Thank Flag Link Thu Mar 7, 2013
Renting with an option to own is rather complex and usually requires the tenant to put down non refundable money for the option. A better way to go might be to lease with a first right of refusal clause
allowing you to purchase the property at the end of your lease. Find a qualified full time professional Realtor to explain your options to you.
0 votes Thank Flag Link Tue Mar 5, 2013
Leonard
There is a new business model I am aware of, where this investor buyer purchases foreclosed homes, renovates the homes and has a fair contract that allows you to rent for up to 5 years, year by year with escalation clauses for rent and purchase price. You get right of first refusal and if you decide to buy something else, they will rent to another person. They only buy in popular school districts, i believe Gurnee is in that category.

A lease wrapped inside a sales contract is typically not good for you as a buyer and most sellers want nonrefundable option money toward down payment.

Call me and I can put you in contact with that firm that specializes in this rent to own model
0 votes Thank Flag Link Tue Mar 5, 2013
Leonard Brady Jr.,

Some of the homes listed for rent will do a rent to own. Unfortunately they don't always advertise that. I can send you the list of homes available for your review and then follow up with the ones that you like. I have personally sold homes that I owned via rent to own so I am familiar with the pro's and con's of buying or selling using this method.

All the best,
Gary Geer
Broker
Results Realty USA
0 votes Thank Flag Link Mon Mar 4, 2013
Hi Leonard

I'm Lisa Connolly and I would love to help you find whatever type of property that you need. If you would like to reply to my response that would be fine or you can email me at Lconnolly@janeleehomes.com. I primarily work with buyers and will work hard to help you in any way I can.
Have a great day, Lisa
0 votes Thank Flag Link Mon Mar 4, 2013
There are 17 homes available for lease that meet your criteria. Only one of those is listed as available for lease-option, four are for lease or sale & might be open to a lease-option.
There are many mis-conceptions about lease options and how they work in the current market. In the past a landlord would credit part of the monthly rent toward purchase. Today most lenders will not recognize that as down payment unless the rent was higher than market rent. A right of first refusal after a certain period of time might work better for you.
Also you may want to search by school district or something other than city to open up other possibilities.
I'd be glad to discuss the subject further with you and see if we can find what you're looking for. I manage the Gurnee RE/MAX office. Please contact me if I can help. Good luck.
0 votes Thank Flag Link Mon Mar 4, 2013
Mr. Brady,

Give me a call. I know a great realtor out that way that I can refer you to.

Sean Cochran
630-470-6830 office
630-330-2229 cell
http://www.qmlending.com
0 votes Thank Flag Link Mon Mar 4, 2013
Let me ask you why do you want this and do you understand how it works?
0 votes Thank Flag Link Mon Mar 4, 2013
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