Rent-to-Own has become more popular over the last few years. It’s a good way for both buyers and sellers to work toward their eventual goal of selling or buying a house.
Fort Worth Texas – Property Management: As the rent-to-own market appears to be growing larger, you might wonder why. What advantage could there be to that situation for either the renter or the property owner? In today’s real estate market it is both very hard to sell a property and borrow money to buy one. That means the owner of a property for sale will have a tough time finding a qualified buyer. A buyer will have a tough time borrowing money for the mortgage even if they have a steady job and find the perfect house.
What advantage could there be to that situation for either the renter or the property owner? In today’s real estate market it is both very hard to sell a property and borrow money to buy one.
With rent-to-own, a buyer can quit paying rent and start building something for the future ownership of a real home. If the credit score isn’t ideal and there isn’t much of a down payment saved up, renting or leasing a house for purchase in the near future is the ideal best of both worlds. While trying out the house and neighborhood, a portion of your rent will be put aside to be used for the down payment. You’ll have time to work on improving your credit score, paying down your current debt, and shopping for a loan when you’re ready.
The property owner that is interested in selling a house but has a hard time finding a buyer can often rent-to-own for a potential buyer that may not be quite ready to qualify for a loan. You’ll be writing a purchase contract that starts with a lease, to be eventually converted to a sale. You’ll give a family a chance to move into your home for sale and start saving for the down payment and getting their credit cleaned up so they can apply for a loan in a year or two. This is a better situation than having the house sit empty for a year or so while buyer after buyer comes around and the house still doesn’t sell. Having a house on the market costs money in marketing, upkeep, and insurance not to mention the continuing mortgage payments if you haven’t yet paid it off.
- With rent-to-own, a buyer can quit paying rent and start building something for the future ownership of a real home.
- You’ll be writing a purchase contract that starts with a lease, to be eventually converted to a sale.
- You’ll have a tenant that takes care of the home as if it were his own instead of trashing it as tenants sometimes tend to do.
Getting an interested buyer in the house prior to their ability to obtain a full loan for the purchase price gives you a monthly rental income and something that may be even more valuable than the cash. You’ll have a tenant that takes care of the home as if it were his own instead of trashing it as tenants sometimes tend to do.
