Rent vs Buy in Charlotte>Question Details

Lucky, Home Buyer in

What is the best way to learn about rent to own situations or owner financed opportunities?

Asked by Lucky, Mon Dec 26, 2011

Help the community by answering this question:

Answers

10
BEST ANSWER
Lucky, one thing to keep in mind as you are researching and interviewing who is right for you...the professional should be able to clearly and easily tell you the difference between 1. Lease Purchase, 2. Lease Option and 3. Seller Financing, especially in a state that has had some issues dealing with such type transactions as NC and may have special requirements for each type of contract.
1 vote Thank Flag Link Tue Dec 27, 2011
Good morning, Lucky
There are about 30 three+ bedroom homes priced under $180,000 and available for lease purchase, owner financing, or loan assumption in the North Charlotte area.
Here is a link to the homes: http://goo.gl/3MSZQ
Here is a link to the townhome condos http://goo.gl/R11va
Here is a link to multifamily http://goo.gl/TF8kC
Not all lease with purchase option arrangements are designed to part a buyer with their money. We do have a better result if we buy outright because our choices and our ability to buy at or below market are MUCH greater with a normal purchase. If you do go the lease purchase option, however, you should have a NC attorney and a Realtor representing you.
If you appreciate an answer, please give "thumbs up". For the most helpful answer, please say thanks with a "best answer" click.
2 votes Thank Flag Link Mon Dec 26, 2011
Hi Lucky, although I agree with Dave's comment on in general 10% of the rent-to-own transactions ultimately end up in a sale...working with a company that specializes in this type of transaction should have a MUCH higher close ratio. This is our specialty in Maryland and our close ratio is between 80-85% (although about 25% of those sales did need an extension, but closed not much longer after their original term). All the best to you!
1 vote Thank Flag Link Tue Dec 27, 2011
lucky,

I do not deal in them to often. generally the situations are difficult to manage. On average less than 10% of those transactions actually close on the house they bought.......

but, if this is an option you want ot go down find a reputable company that specializes in them. look over all paperwork up front and consult with a Realtor or attorney before signing anything so you know exactly what you are getting into with the transaction.

In Charlotte they are not as popular as they are in other parts of the country..I am not sure why. But be prepared to have someone ask for a good down payment from you on a lease purchase or rent to own. You may be better off just continuing in the path you are in now and talk to soemone about building your credit then go and look for a home...it will probably cost you less in the long term as well
Web Reference: http://www.davedicecco.com
1 vote Thank Flag Link Tue Dec 27, 2011
Even if you find one the deal may fall apart years from now. I frequently get calls from buyers that lost a ton because the deal did not work out like they thought it would. You are assuming the seller is in a better position than you are, often a very big mistake. If you work around not qualifying for a traditional mortgage the risk on your side increases a lot. Usually the reason a buyer seeks owner provided financing is because the buyer does not qualify for a traditional loan. Underwriting guidelines protect the buyer more than they do the lender. If you search around even a little bit you will find plenty of “buyers” that tried owner financing or lease to own that did not work out so well. The underlying assumption is the seller will also be able to perform someday down the road. That is a very big what if, people die, get divorced, go belly up, lots of bad things could happen to the seller before you are ready. See more info in the link below I hope my observations protect you, good luck,
1 vote Thank Flag Link Tue Dec 27, 2011
I do both as part of my business and have noticed that folks who offer financing tend to use the MLS and agent networks less. Which makes it harder. Check Craig's LIst and other free places to advertise and if you are looking to buy locally, take alternate routes as you drive, keeping a close lookout for home-made signs.
1 vote Thank Flag Link Tue Dec 27, 2011
Theresa Flanagan -Allen Tate Realty (704) 941-8430
0 votes Thank Flag Link Tue Jan 7, 2014
Here's a link to a blog I wrote on how to find lease-option and similar opportunities: http://bit.ly/findaleaseoption

That blog tells you how to find them, but it doesn't provide guidance on: (1) whether a lease-option is right for you, or (2) how to protect yourself in such situations. (I keep meaning to write blogs on those topics! In the meantime, you can search past questions and answers. I like lease-options; lots of Realtors don't. Read both sides of the argument.)

You would be safer with owner financing or some other technique where you actually get the deed up front. (Subject to is another such technique.) But lease-options are perfectly OK if properly structured.

Hope that helps.
0 votes Thank Flag Link Tue Dec 27, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
We actually specialize in Rent to Own here at RentPurchase.com. I'd love to help you find your next new home so we'll need to set up a time to talk to discuss your needs. We can absolutely help you achieve your home ownership needs. Keep in mind we have a lot of homes that are not on our website but it's a good resource to see what we do.
0 votes Thank Flag Link Tue Dec 27, 2011
I would suggest looking up a firm that deals with rent to own like Allen Tate. I know there are a lot of local agents with Allen Tate that work with rent to own clients.
0 votes Thank Flag Link Mon Dec 26, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer