How to Rent to Own a Home, Part I.

The first lesson in rent to own is to address the 'why' of rent to own. For example, why do you want to rent to own a home? Why not just go to the bank and get a loan?

The answers may be you are unable to qualify for a traditional bank loan, therefore rto is the obvious choice. What you may not know is there are many loan programs for people of all credit histories, a variety of credit scores, and for those buyers who don't have adequate down payments.

For one thing the loan programs can be difficult to find, the ads are often obscured by giant notices you might find in your email, or while browsing. These are the ads that seem too good to be true -"Anyone Qualifies, First 50 Borrowers" and so forth. We will save this part of the discussion for another day as there are plenty of you who simply are going forward with rent to own and good for you-but let's use our head and not get too far out to sea without a life-jacket.

The understanding of the terms used in rent to own is very important to know. For example, in some states there is in place specific laws that regulate rent to own homes, that is the language of a contract and what defines the concept.

Rent to own can be know as; lease purchase, rent to buy, lease option, land contract and so forth. It is important to know this well ahead of time so that any agreement you enter into with a seller is one that meets the letter of the law for the state in which you are renting to owning a home. It is very costly and time-consuming to be in a position after the fact to argue in front of a judge your legal position. It is a waste of time and money.

This examination must be done early in the game for an obvious reason. Once you get to the point of finding a home that you love then the emotions take over and dangerous decisions can be made. Cool your jets, education is your friend, an in the rent to own homes industry trust me, I have seen some terrible deals cost buyers and sellers thousands of dollars.

Stay tuned. Part 2 in the next few days.

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Rent to Own Bargains are Heating Up the Sales of Homes

Wow, interest rates come down yet again. What this means for you, the rent to own buyer is an opportunity for interest rate negotiations with the seller.

When you are buying with seller financing sellers know there are few places to put their money to get a decent return on investment. If you offer 6% on seller terms that is a great deal for the seller. Many sellers are not yet convinced of the stock market and the so-called safe investments, bonds and treasuries are not offering anything on returns, plus some people wonder if the government will even be in business.

Suffice it to say the government will stay in business, at least for the short term. That is not our biggest concern for now. The chief concern for everyone should be the housing predicament. With lower interest rates houses should be selling like crazy, but that is not the case. Sure there are some cities doing better than others but prices are still down.

So remember to bargain hard for a great deal. Don't make a mistake and protect you ass-ets! Don't forget the 5 biggest mistakes.

Mari

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You can download widget here. The widget available for Windows and Mac (908Kb Windows, 255Kb Mac)."

New Lead Generation Program for Home Sellers, Realtors and Investors

In the business of real estate sales and service nothing can be more important than prospects. As we all know any business with out a customer is dead in the water -nothing happens. So what is a prospect worth? Sure there is always the question of quality of lead. At the very least any prospect can sign up for a Free Credit Report. We can do that for you.

Realtyrto is flushed with good quality prospects. Daily we get email sign-ups looking for real estate for rent, rent to own, real estate to buy or sell, mortgage loan info, credit repair services, debt settlement, and down payment assistance-just about anything that has to do with real estate. In less than a year we have gathered more than 8,000 quality emails of prospective customers.

We have prospects with perfect credit and no money down yet qualify for a traditional mortgage. And then we have prospects with poor credit yet have 30% or more as a down payment and a co-signor to boot.

The leads we get are for professionals and home sellers alike. We now offer these leads for a modest fee.  For a limited time we offer a 7-day free trial. Take a look and let us know what you think.

Mar

Is rent to own the same as lease purchase?

We get this question quite often. Truth is the rent to own concept is known by many different names. The reason for this is geographic in nature. In Texas lease purchase is more common then rent to own as it is known in Ohio, but this is a very broad generalization.

Let's look at all the phrases that essentially mean the same thing as rent to own -lease purchase, lease option, lease to own, owner financing, lease to buy, option to buy, lease with option, lease option to buy, rent option to buy, and land contract.

If you have any questions about this post your comments here.

Welcome to the Wonderful World of Rent-to-Own Real Estate.

Rent-to-own real estate is nothing new. Since Roman times buyers and sellers have entered into owner-financed realty agreements. What is new is the numbers of participants. Why? The recent economic conditions that have depressed real estate values has also drastically reduced mortgage loan approvals. So does that translate into no customers?

There is no shortage of buyers and sellers in any economy. For every owner of real estate at some point becomes a seller. And for every tenant making someone's mortgage payment is a motivated buyer. If only the two parties can connect and strike a deal then something happens -the for sale by owner (or Realtor, agent) becomes the de facto lender. Everybody wins. Or do they?

Real estate is witches brew with complex with rules, regulations, zoning, inspections, legal issues and so forth. Throw rto in the cauldron and let's have a party. What is rent-to-own? How does it work (or not work)? How is a contract structured?

There are many question that buyers and sellers will ask one another before signing on the dotted line. With that in mind the purpose of this blog is to attempt to keep it simple, and real. Real strories of real deals. It is all about the 'Beauty and the Beast' of rent-to-own realty.

Enjoy. Participate. Spread the word.