Rental Basics in 92078>Question Details

Lafr79, Renter in 92078

what do we all think of rent to own?

Asked by Lafr79, 92078 Mon Feb 14, 2011

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Avoid it at all costs. Save, improve your credit or do what ever is keeping you from buying and buy when you can. Paying option fees and deposits, with a promise to buy at a certain price in a year, is not a good idea because it's not likely not going to happen and then you loose the option money and deposit you gave the seller. Even if you could buy it the bank might not agree with the proposed price you agreed on a year earlier and so you loose all that extra money you gave the seller. It's rare that one actually does sell.
2 votes Thank Flag Link Mon Feb 14, 2011
Pie in the sky. Not gonna happen. Save money. Fix credit. Go FHA.

Find a lender who will help you put together a financial plan that will get you where you want to go. Contact me if you need a lender who you can trust who will do so.

BeachBrokerBill
DRE#01775528
bill@coastalhomesbybill.com
0 votes Thank Flag Link Fri May 6, 2011
I would approach this question from a different angle, first I would contact a financial planner or your accountant I have seen lease option programs work out just find. But you need to ask your financial advisor as to how this would impact you (write off's etc). Most lease options are a two year or less arrangement-- if you are intersted and you currently are in a home that the owner has proposed this arrangement to you-- seek out the advise of a real estate attorney --- he/she will be able to guide you with what I's need to be dotted.
Crescent Moon Realty, Inc and Land N Sea Auctions.
Email-lksellshomes@gmail.com
1760-650-2157 Call or text message.
0 votes Thank Flag Link Wed May 4, 2011
The shocking number is 10%. Only 10% of all rent to own contracts in Las Vegas become owners. 90% fail, and they overpaid on the rent for years so they could get credit towards ownership. Not a great investment.


David Cooper Las Vegas Foreclosure Houses Bank Owned! Freee List +1-7024997037:
0 votes Thank Flag Link Sun Mar 20, 2011
you don't say why you are considering a rent to own. you also don't give any particulars. if we knew why you are not simply purchasing it might change some of the prior advice you got.

while there's nothing wrong with such a scenario, you do need to put some protections into place to assure that the home will be purchasable when you do decide to pull the trigger. for instance you want to assure yourself that the owner is current, and remains so, on the note so that the home does not get foreclosed upon during your rent to own period. that's just one thing to consider. frequently we in the trade see such scenarios offered by clever folks who know few rent to own sales are ever finalized.

your situation also needs to be considered too. if you are trying to lock in a price while you tidy up credit blemishes, a rent to own isn't a bad idea. if you are thinking that the rental period will let you accrue some down-payment funds...i have seen that tried but few folks have the discipline to save any real cash over a year or two.

if you can give a few specifics we might be able to give you better advice.
0 votes Thank Flag Link Sun Mar 20, 2011
I agree with Tim. I've never heard of a deal closing successully. Your best bet is to just save and work on your credit. Good luck!
0 votes Thank Flag Link Mon Feb 14, 2011
I agree. There are too many potential problems for you as the renter. The owner holds all the cards in this type of transaction. Instead, consult with an experienced real estate agent and senior loan officer to assist you in determining whether you're capable of buying a home now. You might be surprised with the result. Best of luck to you!
0 votes Thank Flag Link Mon Feb 14, 2011
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