how do i rent to own through postlets?

Asked by Mike Merritt, Encino, CA Mon Jan 24, 2011

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7
Dan Tabit, Agent, Issaquah, WA
Tue Jan 25, 2011
Mike,
Any local agent can set up a search for homes with Lease/option available. Postlets and Trulia are sites agents use to market their listings, but you'll need an agent. See who else answers your post or check out "Find a Pro" on top of the page to find a good local agent who can help.
1 vote
Cricket Yee, Agent, Sherman Oaks, CA
Tue Jan 25, 2011
Hi Mike, I suggest you proceed very carefully regarding rent-to-own listings, especially if you are finding them on Craig's List. Postlets is a free service, and anyone can make a very professional-looking ad with or without a real estate license. The reason I am cautious is I have a friend who answered an ad, which looked too good to be true, and it turned out that the property had been foreclosed by a major bank, and banks do not do rent-to-owns. The people who ran the ad wanted a large sum of money for an application fee, and that is not typical for rent-to-own scenarios either.

Right now, rent-to-owns are not typical for the Sherman Oaks area. The only advantage in this market to do such a deal is if you don't have the down payment, but 3.5% FHA loans take the teeth out of this scenario.

Good luck and do not hesitate to ask more questions.
0 votes
Tommy Lee, , 91502
Tue Jan 25, 2011
Mike,
Good question. There are two points I would like to make. First, a person who uses a postlet and not a real estate agent is usually a person that is cheap. They think they can save money by doing things themselves. In my experience, this type of person will also be cheap with a buyer/renter. So beware.

The second point is that rent to owns are a little more complicated than just a rental or a purchase. It combines both and so, naturally, the terms need to be set forth in a way that protects your rights. That is where a good real estate professional could save you thousands.

Let me know if I can help.

Tommy Lee
DRE #01723594
SFR Certified (Short Sale & Foreclosure)
tommy.lee@dilbeck.com
323-821-2292
говорю порусскии
0 votes
Brian Fisk, , Sherman Oaks, CA
Tue Jan 25, 2011
Your best prospect for a “lease to own” property would be one that is offered for sale OR lease. Bob is right, very few homes are listed as “lease option” because with the price volatility in our local market it doesn’t make sense to agree on a future sale price at the time the home is leased, however there still can be advantages to a “lease to own” arrangement. The fairest and most sensible way to arrange a lease option is to base the sales price on an appraisal done at the time the option to buy is exercised. An incentive for the lessee/buyer would be application of the deposit and perhaps a portion of the rent towards the purchase. An incentive for the lessor/seller would be savings on the sale transaction in the form of a reduced real estate commission, since the agent will not have to market the property.
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Jan 25, 2011
Best to contact a Realtor represent you which has the entire inventory of lease purchase through MLS. Not all agent use Postlets promote their listings

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
BOB Khalsa, Agent, Newhall, CA
Tue Jan 25, 2011
Mike:

You are looking at a "Lease Option" which means a lease with an option to purchase. Very few properties are advertised as a lease option and you may have to negotiate this at the time of leasing a property listed for lease or those listed for sale where the owner will consider it. Obviously, it would exclude short sales and bank owned properties.

What has to be negotiated is the terms of the option i.e. when it would be exercised; the option deposit which generally would be non-refundable in case you did not exercise the option; proportion of the rental payments that would count towards the down payment; the sale price that could be specified at the time of leasing or determined at the time of exercising the option, etc.

Do make certain that you deal with a Realtor who knows the intricacies of a Lease Option since there are upfront amounts and commitments that you will be required to make.

Bob Khalsa
Broker
Santa Clarita
0 votes
Maureen Cody, , Charleston, SC
Tue Jan 25, 2011
MIke

I second Dan's suggestion to connect with a local realtor. He/she will be able to guide you through the entire process and ensure that the contract is written properly. It would be wise to have representation!

Regards,
Maureen
0 votes
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