Real Estate Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Lease Options or Rent to Own?


Finding a rent-to-own house is one of the many ways someone with bad or no credit can buy a house. You will often find them called names like lease/options, lease with option to buy, lease purchase, lease 2 purchase, rent with option to buy, rent to own, or rent to buy homes.

There are a few differences between rent-to-own and lease-option agreements, although many people use the terms interchangeably. With a rent to own (or rent to buy) home, the buyer makes an agreement with the owner that part or all of the rent money will go towards the down payment of the home, and at a certain date, perhaps 2-5 years in the future, the renter will purchase the home, using the money that was set aside as the down payment.

There is usually not much money put down in the beginning, outside of what would normally be needed for a rental home, so this is a good way to get into a home for little or no down payment.

Another advantage to a rent to buy situation is that if you compare how much rent money is applied monthly to the home price, even if it is only 25-50%, it will still be much more money paid on the principal of the house than if you had taken out a loan for it. If you look at how much money goes to the principal payment of a home with a typical mortgage loan, you will find that most of your mortgage payment in the beginning is just paying interest on the loan. A rent to own agreement, where the money goes directly to the payment of the home, could be saving you a lot of money in the long run.

With a lease-with-option-to-buy, a renter signs a lease agreement (often for a shorter period of time, like1-2 years, but it could be longer). The renter/buyer usually pays a sum in cash, usually non-refundable, to the owner in agreement to buy the house at a later date for the price agreed upon. The renter has the option or right to buy the home, so in the end they have a choice and can back out it they want. Some of the rent paid may or may not go towards the purchase price of the home.

This is a technique often used by real estate investors in periods when the interest rate is rising fast. This way they hope to buy the home at a lower interest rate on a later date. In the meantime, they will sublease the home to someone else, who will make the payments for them.

Again, the terms "lease option" and "rent to buy" are pretty much used interchangeably today, so check with the owner to find out exactly what terms they are offering. Or approach an owner with your own offer for renting to own.

If you are a renter who is tired of paying someone else's mortgage and want to own your own home, this is one of many ways that you can buy a home. One of the drawbacks is that you will still need to purchase the home at a later date. This may be a problem if you have bad credit, because you may still need to qualify for a loan when it is time to purchase the home. If your credit can be repaired in several years, this may be a great way for you to get your home now, and good motivation to clean up your credit for the future.

From the book "Buying a Home When You Have Bad Credit-- 12 Ways to Purchase a House When You Can't Get a Home Loan" by Alexis Dey. © 2005 Mohave Publishing. All rights reserved.

For more ideas on how to buy a house when you can't get a home loan, look for our exclusive e-book, "Buying a Home When You Have Bad Credit," which can be ordered only through our site at I-can-buy.com.

For free rent to own agreements, as well as other free real estate contracts and forms to download in PDF format, check out our site at site at I-can-buy.com


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Forbes

7 Real Estate Tools Entrepreneurs Should Know About
Forbes
As an entrepreneur, I'm asked more about my investments in real estate than almost any other question because other entrepreneurs love to know about areas of passive income they can look into to hedge against the entrepreneurial risks they take. Last ...



Real estate transfers: Reported July 22, 2018
Herald-Whig
Real estate transfers recorded in the office of Adams County clerk and recorder. Quincy area. Priscilla A. Moffit and Tiffany A. Nowacki, property at 1407 Cherry St., to Julie E. Nebe. Kristen L. Cook and Ryan M. Cook, property at 1501 Adams St., to ...



Omaha World-Herald

Real estate transfers, July 22
Omaha World-Herald
Waterford Development LLC to Knape, John and Dewester, Gay, 7014 N. 153rd St., $32,000. Celebrity Homes Inc. to Selvaraj, David Nallathambi Thampi and Nallathambi, Abithasanthi David, 16471 Read, $299,730. Baranko Inc. to Fuller, Brian and Deborah ...
Real estate records, 07/22/18Lincoln Journal Star

all 2 news articles »


MassLive.com

Real estate transactions for Hampden, Hampshire and Franklin counties: July 22, 2018
MassLive.com
Agawam. 1762 LLC, to Stuart Amusement Co., Main Street, $255,000. U. S. A. Housing & Urban Development to Lilia Aliyeva, 72-74 Riverview Ave., $200,000. Karen Brunelle and Karen M. Brunelle to Russell J. Bernard and Meredith M. Bernard, 1101 North ...



New York Post

Landlord critic James raking in cash from real estate interests
New York Post
After shaming the city's “worst landlords” for years, Public Advocate Letitia James is hauling in donations for her state attorney general campaign from developers, management companies and other real estate interests. The real estate industry has ...



TheStreet.com

Closed-End Real Estate Funds Are Performing Well
TheStreet.com
Resource Real Estate Diversified Income's eight funds saw gains in net asset value in the second quarter ranging from 6.4 to 6.8%. RMR Real Estate Income Fund saw 5.2% growth in the second quarter, while the four Total Income + Real Estate funds are ...

and more »


REAL ESTATE TRANSFERS
Youngstown Vindicator
Kimberly A. Iudicciani to Village Realty LLC, E. Water St., Lowellville, $40,000. Dennis E. Phillips to Anthony P. Phillips, Radcliffe Ave., Austintown, $90,000. Sharon J. Rich et al to Gregory S. Razo, South Ave., Youngstown, $36,000. Patrick E ...



Forbes

Secure Preapprovals To Win Commercial Real Estate Deals
Forbes
The 2017 Commercial Real Estate Lending Trends Survey by the National Association of Realtors® confirmed that only 30% of all commercial real estate transactions are all-cash. That is why for the vast majority of transactions, the prospective seller ...
Video From 1991 Imagines What Real Estate Agents of the Future Might Look LikeGizmodo

all 3 news articles »


RisMedia.com (press release)

Using IGTV for Your Real Estate Business
RisMedia.com (press release)
While in its infancy stages, IGTV is an excellent platform for listing videos, open houses and casual videos showcasing the day-to-day happenings of a real estate professional. Beyond that, real estate professionals that utilize this feature will ...



The Tribune

Real estate is king, policy or no policy
The Tribune
The business of land and property is not called 'real estate' for nothing. By now, nearly all — rich, middle class, and poor — would have realised that no other estate, whether executive, legislature or judiciary, can rein in this 'real power'. Even ...


Google News

home | site map
© 2006 TIGER MEDIA