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


Wall Street Journal

Luxury Real Estate Runs Hot and Cold in Europe
Wall Street Journal
After a long, steep downturn, real estate in the French capital has finally got its joie de vivre back. The political landscape under President Emmanuel Macron, along with low interest rates, have helped reverse prices' downward trajectory. The average ...



Miami Herald

Some impacts of new tax law on local real estate are clear. Some aren't.
Miami Herald
Even though the sweeping tax reform bill was signed into law on Dec. 22, the massive document is so dense that even seasoned real estate professionals aren't entirely sure what it will mean for Miami. While some of the bill's real estate provisions are ...



Bangor Daily News

Miami real estate developer buys former Bangor Macy's
Bangor Daily News
A subsidiary of Lionheart Capital, a Miami-based real estate development and investment company, closed on its purchase of the former Macy's department store property at the Bangor Mall earlier this week. Ten-X, the online auctioneer that sold the ...
Florida Real Estate Company Purchases Former Macy's at Bangor MallWABI

all 2 news articles »


Press Herald

Southern Maine's real estate market still riding high, experts say ...
Press Herald
But headwinds from a stalled marijuana industry and an abundance of hotels in Portland could slow further growth, said presenters at the Maine Real Estate and Development Association forecasting conference Thursday. By J. Craig AndersonStaff Writer ...

and more »


The Mercury News

Transcript: Trump dossier initially focused on real estate
The Mercury News
WASHINGTON — Research that led to the creation of a dossier alleging a compromised relationship between President Donald Trump and the Kremlin focused in its early stages on his real estate projects, a history of his tax disputes and “opaque” business ...

and more »


Gecina: Parisian Real Estate Player To Have A Strong 2018
Seeking Alpha
The company has made some excellent strides recently, and shareholder value has been increasing. Recent efforts on specializing on Parisian real estate assets (shedding non-core assets), as well as a recent combination with Eurosic, makes Gecina a very ...



Forbes

3 Commercial Real Estate Trends To Watch In 2018 - Forbes
Forbes
Political and economic uncertainty has pervaded the past year, with the U.S. economy showing signs of growth amid low inflation and a distressed retail segment in 2017. Here's a look at three commercial real estate trends to watch in 2018.

and more »


It May Not Be Time To Fear Stocks Yet, But Perhaps Real Estate
Seeking Alpha
Euphoria seems to be taking over the stock market with frequent stories of new highs - but what is more important is how strong the stock market performance is relative to the bonds. Month-to-date through Jan. 18, 2018, the S&P 500 is outperforming the ...



Bitcoinist

Spain: First Real Estate Sale Using Only Bitcoin in Country
Bitcoinist
Mister Piso, a real estate company based in Spain, has sold the first piece of real estate using Bitcoin as legal tender. The company is hoping that a shift into cryptocurrency could accelerate sales and revitalize the housing sector. Bitcoin and ...

and more »


Bisnow

GFP Real Estate Buying FiDi Office Building For $310M In First Big Deal Since Name Change
Bisnow
GFP Real Estate has made its first major transaction since changing its name from Newmark Holdings in October. The Gural family-run company purchased 7 Hanover Square in the Financial District from The Guardian Life Insurance Co. for $310M with the ...


Google News

home | site map
© 2006 TIGER MEDIA