First thing - it does not quite make sense to me from your perspective. If you are going to pay a landlord - say - 4-5K a month to rent his home, that's income and equity going into his pocket and bank account (until you reach the payoff date and you get said property by getting all the documents transferred to your name etc.), During those 30 years YOU are amassing absolutely no home equity. Why wouldn't you want to get a mortgage and start putting that 4-5K into the equity of your own home. You could use that equity as leverage for things later in life, like, to help send your kid to school, or buy a new car or vacation or whatever.. Having equity is having leverage. It's how people with money amass more money. This man is trying to keep all the leverage for himself until the last possible moment. And who knows what terms he wants for this deal? I'm sure there are some term he has hidden in the back of his head to give him the edge on the deal.
Sounds like maybe a good deal for him and maybe not for you. I think about it like this. Stores would not promote rent-to-own deals if the store knew it was going to lose money by making the offer. I think rent-to-own offers are good ideas for items you may not want in year or two. It gives you the option. Similar to a car lease. But this is a home.
I just don't get why he wants to structure it that way.
Anyway, here's the point:
If you need to rent the apartment because its too expensive to buy, then you should probably look at some property within your budget that will help your overall financial goals for the future... And not put you in a potential financial hole down the road. A Real Estate Agent and/or Mortgage Broker can help you find the best solutions that allow you to pay rent and bills, and hopefully start to put some money away for a down payment on a home in the future..
It just sounds like too many things could go wrong for you and not for the current Owner. He's got the upper hand and benefits so far as I can see.
If you really want this place - first get that Buyer's agent who will represent you well and act as your concierge through this process. Let's face it. Real Estate Brokers would not be needed if it were not for all of the logistic planning that must happen in a specific and time sensitive order. We are your concierge. Just like this forum for asking questions; buyers, sellers, renters, and investors, asking questions to the Real Estate Brokerage Community categorically demonstrates that good qualified Agents and Brokers are strategically needed to get the deal done right. And you can spend more time with family!!! I guarantee you will have more questions - so get with Real Estate Agent or Broker who is best and most trustworthy for your taste and you can have answers in 5 minutes rather than 5 hours deciding which answer is correct, or most correct, or 2.2 out of 5 points correct. You get the picture.
Anyway, sorry I'm taking you time. It's just an interesting topic and I'm thinking about what I would do if I were not a Real Estate Agent and had the same dilemma.
After you have seen the place with your Buyer's Broker (and you are sure you want the property, and the Buyer's Broker could not negotiate the Seller into selling it directly to you through a Lender) then do this:
At the same time:
Bring together three people: You can use our large Conference Room at 485 Madison Avenue at Douglas Elliman in Midtown. Just call and I will set it up.
1. Your Buyer's Broker from a Real Estate Brokerage. Use the Voda Team at Douglas Elliman and myself, and you will get great attention from our 12 Team members and all the unique technology Elliman has recently rolled out.
I'm interested in this deal because I love figuring out the best compromise and make a deal work best for everyone. And this deal seems to be an especially challenging one. Though it would be my pleasure to represent you, I'm also super interested in hearing what the Lawyer and Mortgage Broker come up with to
1. Bring the best real estate lawyer you can find and afford.. One of my good friends is a real estate lawyer who graduated from Harvard. Many of my Yale friends are lawyers in NYC as well. Let me know..
2. Bring the best Mortgage Broker you can. I can give the names of plenty for you to interview or set you up with the best two I know and you can call them and see if you click with them.
I suppose that was the long answer but it made me think. And it helps I can type fast!
All the best to you,
You many find my contact on the Douglas Elliman website below or on my profile on this site.