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How to Rent to Buy Your Next Home Without Rent to Buy Investors

Today more then ever, more and more people are looking at Renting to buy their home, due to the credit squeeze of the sub prime mortgage market. What most people don’t realize is that they don’t need to rely on professional Rent To Buy investors to secure their own home. By simply using a basic marketing system, it is possible to find and move into your own home within 12 weeks!

So, if you have been asking yourself, could I ever secure my own Rent To Buy Home without an investor, the answer is a definitive YES. In this article, we are going to cover the three main way to make a Rent To Buy deal work, and you can use this to decide what way would be best for you and your family.

Before you decide what Rent To Buy purchase would be best for you, please consider your income, your budget, your credit rating and more importantly, the needs of your who family.

The Rent To Buy method covers various different ways to make a Rent to buy purchase work, so lets cover the three most common ways.

Method one for Rent To Buy is what we call Lease with the Option to purchase. The paperwork to support this method is a normal residential lease agreement and a call option deed. The lease agreement gives you rights to occupy the property and the call option deed gives you control of the asset financially for the term of the agreement. The buyer gets to try before they buy using this rent to buy method.

Method two for Rent To Buy is what we call a vendor financed deposit. The paperwork to support this method is a contract for sale of land, a second mortgage loan agreement and usually, a caveat to protect the title. Using this method, the buyer gets to buy the home using normally mortgage finance, and the vendor (owner) of the property offers vendor finance to fund the buyers deposit. The buyer will normally need clean credit to qualify for this rent to buy method.

Method three for Rent To Buy is what we call a terms contract. The paperwork to support this method is a contract for sale of land and a consumer credit code compliant installment credit contract. The buyer makes payments to the owner for a period of time that they both agree, so in basic terms, its like a delayed settlement with regular payments to occupy the property.

So, as you can see, these three Rent To Buy methods can make the prospects of owning your own home much easier then needing to qualify for a home loan under normal circumstances. The We Buy Homes Rent To Buy methods are always treated as an open book policy, so that everyone knows to good and bad points of Rent To Buy before they jump into such a deal.

Always remember to get independent legal advice before signing any documentation, and you should find yourself in a safe and profitable venture moving forward.

Article Source: Artipot.com
For More Information, Please Visit the following Website
Property Millionaire Intensive

Lease Option

Lease with option to purchase, in short, is termed as lease option or lease purchase. For residential real estate, it is a contract between the lessee and the lessor. During the term of the contract, the lessee or the tenant has to pay rent to the lessor or the landlord, so that the lessee would be able to live or use the residential property as his or her home. After the term of the contract, the tenant or the lessee has the option to buy the residential property from the landlord or the lessor. Usually, those who wanted to to have a residential property, but, could not afford to buy one outright or have a poor credit history, are those who choose the lease with option to purchase or lease option. There are many benefits for landlord or investors when it comes to lease option:

  • For landlord or investors, the rental that he or she will receive from the tenant will be more upfront, since, the tenants are more than willing to pay greater upfront money because their upfront payment will be viewed as or similar to a down payment in an outright purchased of a property.
  • Another benefit for a landlord or an investor is higher rent. Tenants are more than willing to pay higher rents to the landlord since there are few landlords or investor that opts for lease option agreement.
  • Higher sales price is also another benefit for the landlord or investor. Most tenants in a lease option agreement is already thankful that somebody is willing to sell them a residential property through a lease option, and so, they are more than willing to pay higher sales price to the landlord or investor.
  • In a common or typical rental agreement, the landlord is the one who assumes the maintenance cost of the property. Most of the time, the maintenance cost becomes a problem for the landlord in a typical setting. In a lease option setting, it is an unsaid agreement that the tenants have to take care of the residential property, especially on the repairs and maintenance of the property since it will be their house in the future.
  • In a lease option agreement, better tenants are attracted. All tenants who still rent a house or an apartment, dream of owning their own residential property, but, due to reasons like having a poor credit, they could not own one yet. In lease option agreement those tenants have a chance in owning a residential property, and so, there are more tenants that would want to enter into a lease option agreement.
  • Another benefit of a lease option is that the landlord does not have to totally renovate the residential property. Although, necessary preparations of the residential property is still taken cared of by the landlord, the tenants understand that they are buying a residential property in its’ actual condition.
  • When the property has been sold, the landlord’s responsibilities are lessened, he or she only has to make sure that the monthly payments are paid and received on time.

Article Source: Artipot.com
For More Information, Please Visit the following Website
Property Millionaire Intensive