do u do rent to own?

Asked by Merlene Brown, Mount Vernon, NY Mon Nov 5, 2012

Help the community by answering this question:

+ web reference
Web reference:

Answers

6
Steven Joseph…, Other Pro, BRONX, NY
Fri Nov 9, 2012
Have you ever thought about Seller Financing. If you find a Seller who is willing to enter into a rent to own, you may be lucky enough to find a seller who does not have a mortgage and is willing to "be the bank" This will allow you to get the tax write offs at the end of the year as well.
1 vote
Christine Go…, Agent, New York, NY
Thu Aug 29, 2013
Hello Merlene,

How are you? I hope you're doing well. I have a listing from a seller who is willing to finance the deal if a buyer can put a 30% down payment. It's an HDFC coop with an asking price of $65k. It's not renovated & needs some TLC but the maintenance is only $700/mo. I'll be posting pictures next week but feel free to contact me if you're interested & I'll get you more details.

Looking forward,

Christine Gordon
Licensed Real Estate Salesperson
Cell: 917.881.2924
Fax: 347.328.9352
Apartment updates available at http://www.christinegordon.postlets.com
"Home is where the heart is."
0 votes
, ,
Fri Jun 28, 2013
Rent To Own is a better deal for the Seller than it would ever be for a potential Buyer.

The basic concept is finding a way to "force" savings towards a down payment by including a portion of the monthly rental that goes towards that savings. You pay your rent every month and your Landlord deducts a pre-determined amount to hold in a special bank account, called an "escrow" account. Your Landlord holds that money until you have saved up enough---through this "forced-savings" method---to meet a down payment to purchase the home.

The terms of the purchase price, including the down payment amount, and the amount to be set aside from the rental for down payment, are all set down at the time of lease signing.

It's all about helping the renter/tenant save up enough money for a down payment to buy a home (in this case, the one you're renting). But this is a better deal for the Seller because he gets to lock in a purchase price and a buyer today for a future sale.


Saving money for a down payment? Well, heck, you can do that on your own.


If you are dedicated to the idea of buying your own home, you can create your own savings plan to save up enough money for a down payment. And when you have saved up enough for a down payment, if that takes a year or two or more, YOU get to decide on the price you're willing to pay for the house at that time based on current market conditions. You won't be locked in to a price that may be a lot higher than what the house is worth in the future.

With Rent To Own you'll be locked in both to the house and to the price, even if it takes you 3 years to save enough through the forced savings of the rent payments. What happens if three years from now your life situation has changed? Maybe you need a bigger/smaller home. Maybe your employment has relocated. Maybe your credit or income is insufficient to qualify for a mortgage loan.


Find a way to save up on your own; not with Rent To Own.


Sit down with a local Mortgage Banker and get yourself prequalified, too. You may find you're better qualified than you think you are, and, if you're not, at least you'll know how much loan your income and credit qualify you for, and how much you have to save towards down payment and closing costs.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes
duartiano26, Home Buyer, Bronx, NY
Mon May 20, 2013
Hi, Mildred I Need a Spaace for a Driving School in the bronx, area Zip Coses 10452, 10453 Ect under Zip Code 10458
0 votes
Ron Thomas, Agent, Fresno, CA
Mon Nov 5, 2012
Lease/Option
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!

The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.

The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?

This is the Ultimate Caveat Emptor!
0 votes
Nirmala Cara…, Agent, Bronx, NY
Mon Nov 5, 2012
Hi Merlene,

There are some homeowners that will allow this. But there has not been many of the rent to own properties in the past few years. Most owner rather sell or will just rent.

Good luck.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more