 Rent to own (by JIN [IN]) Aug 18, 2008 4:46 AM
 Rent to own (by Dave [IN]) Aug 18, 2008 5:07 AM
Rent to own (by Jason PA [PA]) Aug 18, 2008 5:57 AM
Rent to own (by Lynda [TX]) Aug 19, 2008 1:53 PM
Rent to own (by Patricia [CA]) Aug 21, 2008 4:34 PM
Rent to own (by JIN [IN]) Posted on: Aug 18, 2008 4:46 AM
Message:
What marketing methods you find the most effective to find tenant buyers for low - mid income neightborhood houses? I have one and would like to do a rent-to-own deal in Indianapolis central township. So far I have used sign in the yard and craigslist and I only got calls people who just want to rent.
Thanks in advance.
JIN --66.73.xx.x |
Rent to own (by Dave [IN]) Posted on: Aug 18, 2008 5:07 AM
Message:
I bought occupied units in the past that had rent to own tennants in Center township. The guy had a nice office on 38th St and was a one stop shop. He a had a broker, realtor, and construction crews based at the office. He seemed to rely heavily on the network the realtor had to find his rent to own clients.
Part of the trouble might be the slower economy and tightened credit market have chased the rent to own crowd back into renting. My inherited RTO folks had to have at least a mid 500 score and make the moves to clean things up. One lady finally qualified for financing and elected to buy in a nicer area in Warren township. Can you offer seller financing? That would make it easier for the buyer.
I have come to the conclusion that at the lower end tennants are largely tennants by choice. They can call the landlord when stuff breaks and don't have a lot of worries about really keeping up on property maintenance. --199.20.x.x |
Rent to own (by Jason PA [PA]) Posted on: Aug 18, 2008 5:57 AM
Message:
There are alot of snake oil gurus and newbies with high hopes that rent to own means your tenant buyer will take better care of your home, be responsible for maintenance, and put a whopping huge non refundable option deposit down. When people call about rent to own they think it is like the big screen tv they rent to own, whereby they make payments for awhile and the tv is basically given to them.
It is very hard to get the huge option deposit upfront. I did get very lucky a few months ago with a rent to own though. --69.242.xxx.xxx |
Rent to own (by Lynda [TX]) Posted on: Aug 19, 2008 1:53 PM
Message:
Jason is right. Rent-to-Own, more acurately called Lease Option or Pruchase Option, is not an easy thing to do--even if done correctly. Most of them are done incorrectly, using the wrong wording, and the most often outcome is that the seller has to take the property back--if he can. Wrong wording can cause a LOT of difficulties (e.g. calling the money you take in a "downpayment" or worse--a "deposit." Also, doing it wrong can hand the tenant/buyers an equitible interest in YOUR property--even if they do not follow thru and purchase it.
I did this THREE(3) times, and I used all the correct wording, and had 2 sep sets of documents(1 lease-covering the tenancy part) and (2-Option to Purchase paperwork) so as not to mix apples and oranges. I did everything right--but still got the property back all 3 times.
The problem is that the tenant/buyers are usually either not serious about the purchase and don't fullfil THEIR part of the Purchase Option, OR, they are just incapable of handling their money and cannot even manage to pay the rent on time--let alone save a downpayment for the BANK LOAN they are supposed to get. They can't get qualified, and you end up getting the house back(if you are lucky) or evicting them for nonpayment of rent--thereby voiding the Purchase Option. It is NOT a good option for sellers. --140.140.xx.x |
Rent to own (by Patricia [CA]) Posted on: Aug 21, 2008 4:34 PM
Message:
I spoke to a real estate agent who basically told me that if I wanted to do a rent to own, it was best to qualify them up front and to determine if they would be willing to do so. Also I obtained his services to get his help in the qualifying. Even if you do the paperwork right, the end result can be either good or bad. Check with a Realtor who may be able to give you help. --68.165.xxx.xx |
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