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by Charles W.
Moore
Buying rent to own home is a very
beneficial process for the individuals having
restrictions on making down payments, limited
earnings, and or poor credit scores. This
process allows such individuals to purchase
homes prior to the fixation of restrictions.
At present, for several U.S. citizens, the dream
of home ownership appears to be far beyond
imagination. The real estate prices have
skyrocketed over the last several years, and
currently it’s almost impractical to acquire a
home without good finance and mega incomes for
compensating a down payment. This is a
demoralizing truth for individuals who reside
with big or joint families.
Though, in past few years, increasingly popular
and equally advantageous alternatives have come
up for individuals facing all the difficulties
pertaining with home-buying. Hence, buying rent
to own house is a viable solution for all these
difficulties. This technique of rent to own
is also known as lease option or a lease
purchase.
The Task:
The
encouraging factor in the process of
buying rent to own house is the
non-requirement of the eligibility
conditions of loan brokers and banks for
buying houses. This is because, in such
cases, the sellers are real estate investors
and hence, more interested in working with
the buyers rather than the traditional
homeowners selling their house through a
realtor and having the buyers use
traditional financial institutions.
Due to this, the seller real estate investor
mostly accepts a lower down payment then
what is required in dealing with a
traditional bank or financial institution.
These positive aspects of rent to own
houses are very tempting for the people
who are not able to catch up with the high
costs of real estate, or who have
encountered events resulting in the
temporary lowering of credit scores.
In return, of these benefits, the tenant
buyers of the rent to own house have to show
flexibility in some other manners. Normally,
such buyers are expected of paying costs
which are close to, or sometimes even more
than the market value of the concerned real
estate. There are two reasons for this, they
are,
1. The seller real estate investor of the
rent to own homes requires rents
that are above the market value for covering
mortgage on the house.
2. The sellers can give rent credits to the
buyers in return of a high monthly rent.
Scenarios:
Consider the instance of an individual
buying a home worth $300,000 with a monthly
mortgage of $2,200, and the owner desires to
sell it. However, many other houses are also
on sale in the same vicinity with a few
priced at comparatively lower prices. At
such times, the home seller real estate
investor decides to sell the property rent
to own to a tenant buyer quickly, instead of
selling it much slower traditionally waiting
for buyer with a pre approval for a mortgage
and realtor in hand .
The creative procedure of buying rent to
own house is day by day becoming more
popular. This is due to the “Win-Win”
factors present in such procedures. Here,
the buyers are able to acquire a home with
restricted money and finance, and the
sellers are able to attain a fair price for
their residence with a swift transaction.
ABOUT THE AUTHOR:
Charles
W. Moore is a U.S. Army Veteran who began
investing in Real Estate in 2001. He's a
Full-Time Investor, Webmaster, Speaker, and
Author of the book, "Million Dollar Rent To
Own Real Estate Secrets Exposed." Get a Free
Report on
Rent To Own Real Estate Investing from
Charles at:
http://www.Rent2OwnExposed.com and learn
more about Real Estate Investing, Investing
in Stocks and Internet Marketing by
visiting:
http://www.REIeBooks.com
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