Lease to Own Purchase and Advantages to Buyers

Controlling real estate through Lease Purchasing or rent to own purchase whether for buying a home or even for investment is the best method of creative finance. No traditional adversarial deals involved here between the buyer and the seller as both reap profits.

In most real estate transactions, there is a natural tendency of both buyer and seller to try and make the most of their deal. Most of the time is spent negotiating all terms. Additionally, there are complications associated with deposits, qualification, appraisals, title companies, lenders, escrows, lawyers, etc. Rent to own purchase eliminates these problems and lets the buyer and seller have a win-win experience and get the deal done.A rent to own Purchase is a process where a rental agreement is combined with a purchase or an option contract. Price, length of contract, rent credit and other pertinent terms are all negotiated in advance. The buyer has a percentage of his rent credited to the down payment or off the agreed upon price. In many cases, more money is being applied monthly than an actual mortgage payment if there is right away purchase of the property.

Buyer advantages

This is a renter who can’t purchase a home through traditional means or not willing to commit. This buyer may not have a large enough down payment for a bank loan, may have minor credit problems, a new job, a high loan to debt ratio or other reasons that make a traditional purchase of a home impractical.

Most buyers are aware of the advantages of home ownership (tax shelter, appreciation, security, etc.) and are eager for a chance at home ownership, thereby getting out of the rental rat race. Our buyer can lock in the future purchase price even though ownership may not transfer for a year or longer. A percentage of the rent can be credited toward the down payment or off the price.

During the terms of the rent to own contract, the tenant/buyer has time to check out the house, the neighborhood and to obtain the best financing. What one needs here is a good partner and guide who can walkthrough with the whole process and assist with the papers and relevant stuff.