Rent vs Buy in Dallas>Question Details

Ryshonda, Renter in 75104

I'm currently looking to rent to own 3-4Bdrm 2Bth, Dallas/Garland area in 3 mos. Does anyone know about rent to own properties?

Asked by Ryshonda, 75104 Tue Dec 18, 2012

Are homes easier to get in my time frame with rent to own? Any referrals would greatly be appreciated.

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Brent S. Rice, SFR’s answer
BEST ANSWER
Ryshonda, based upon a quick search of the 75104 zip code, there are 20 homes for sale that have 3+ bedrooms, 2+ bathrooms are priced no greater than $100,000.

To do a lease-to-own is very complicated, and I discourage it. Rather, since you have some cash, I suggest that you offer to pay a significant down payment to the seller and ask them to finance the remaining portion of the purchase price. Depending on their circumstances, certain sellers are willing to offer seller financing until you can get your credit established to obtain a traditional loan approval. The interest rate will likely be higher than traditional loans . But, with the right assistance from an experienced Realtor/Lender, you can get a traditional loan within 1 year. There is hope. You just need to find the right opportunity. At least you are now in the right place to get some input. Any of the Realtors in this forum can help you find properties that fit your criteria. Finding the seller that will offer seller financing is the greater challenge. But it can be done. Good luck!

* STEP 1 is to talk to a lender to make sure what you need to do in order to obtain a traditional loan. * STEP 2 is to take that information to a Realtor of your choice that can help you find a list of properties that works for you.
* STEP 3 is to have your Realtor talk to the Seller's agent to see if seller financing is an option.

Brent Rice, Top Recommended Broker
The Rice Group, Inc.
Website: http://www.ricegroupinc.com
214-808-3100
Brent@RiceGroupInc.com
1 vote Thank Flag Link Wed Dec 19, 2012
Rent to own properties are also called "contract for deed" properties. The Texas Property Code governs these type of transactions, and there are very strict contractual and notice requirements in the statute. The reason why the statute governs these types of transactions so heavily is because they are very easy to abuse - in the past, unscrupulous individuals would convince tenants to sign these contracts, with the promise of future ownership, and then use any excuse to cancel the contract, keep all the money, and sign up someone else. It was a way for a property owner to get the property back and avoid the hassle of going through foreclosure. Could you imagine if you paid 10 years on one of these contract for deeds, just to have the owner find an excuse to cancel the contract, keep your ten years worth of payments, and you have to start all over again?

I do not recommend rent-to-own situations. There are other options available, depending on what your goals are. If you're worried about being approved for a loan, there are sellers out there that will carry a note and finance themselves - you'll probably pay a higher interest rate and payment, but it is an option. My recommendation is to find a mortgage lender and get prequalified for a mortgage, so you can see how much a lender would be willing to lend, and what the monthly payment would be. With that information, you can then make a better decision as to whether you want to buy or rent. Good luck!
1 vote Thank Flag Link Tue Dec 18, 2012
Rent-to-own is very, very restricted in Texas. There are far fewer limitations in the other 49 states. The advice to consult an attorney is good, but because of those restrictions it's really essential in Texas.

Point of clarification: "contract for deed" and "rent to own" (or lease-options) are not the same. They're somewhat similar and can accomplish the same goal, but they're really, fundamentally different in how they work and the protections you have.

Here's a link to a blog I wrote on how to find lease-option and similar properties: http://bit.ly/findaleaseoption

Hope that helps.
0 votes Thank Flag Link Wed Dec 18, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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In Texas lease to own requires an attorney, and it is very complicated. Consider talking to a lender, call a real estate agent to discuss all options and then set up your game plan.
Rosalyn Traylor
http://www.come2BigD.com
RE/MAX Premier Group
0 votes Thank Flag Link Sun Jan 6, 2013
In Texas lease to own requires an attorney. There are other options! A good lender & Realtor will be able to guide you through the process.
0 votes Thank Flag Link Tue Dec 18, 2012
Rent to own days are gone.

Kenny
Turtle Creek Realty
0 votes Thank Flag Link Tue Dec 18, 2012
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