Great Resource for Rent to Own Properties

 

 Here are some beautiful homes that have been featured as rent-to-own properties in Jacksonville Florida…

Check out the video below. It features some lovely properties while also explaining some of the basic information that people should know before attempting to pursue a rent-to-own agreement.  This is a great resource because sometimes you have to comb through tons of articles and websites before coming in touch with the best, most up to date resources! We’ve got you covered here.

 Option Money: EXPERTS ALL AGREE that “In a rent-to-own agreement, the potential buyer pays the seller a one-time, usually non-refundable fee called option money, or option consideration. This gives him or her the option to purchase the house in the future.” 

Are YOU an Ideal Candidates for Rent to Own??

According to a recently published article at Investopia.com, author Jean Folger stated that “A rent-to-own agreement can be an excellent option for people who want – but are not financially ready – to become homeowners.” This is because accepting a rent-to-own agreement gives a great opportunity to organize finances (by improving their credit score and saving money for a down payment, for example) while “locking in” the house they’d like to own. If terms are offered such as the option for their monthly payments, or a percentage of their rental payments  can be applied to purchase of their home, they also get to start building some equity. This is the best case scenario under optimal circumstances. This is what a lot of people are looking for today.

 It is important to know that making rental-to-own situations work out for the best requires a few important ingredients. It is great to become familiar with the pros and cons before getting on board with top resources that offer abundant properties for rent-to-own candidates. For starters,  potential buyers need to be absolutely sure that they will be able to complete the purchase agreement at the time that their leasing agreement expires.  If not, they will have paid the option money – “which could be substantial – and a premium on rent for 12 to 36 months” with nothing to benefit them and their families in the end. This is an inherent risk that the people at the We Help Foundation helps people to avoid when they are enrolled in a home ownership track program.

Instead, if a renter thinks they might fall into that problem, it might be a good idea to continue renting (with a “normal” lease), building credit and saving for a down payment.  Even while renting, it takes great discipline with money management to build up the qualifications for a good mortgage rate and secure financing in time for the lease expiration date.  Then, when they’re ready, they can choose from any home on the market in their price range.

Here is the bottom line for folks who want to rent a home until they can buy. This is according to Investopia, a very well-known, trusted and reliable information source for renting and other financial ventures:

“A rent-to-own agreement allows potential buyers to move into a house (maybe even their dream home) while getting their finances in order to purchase the home several years in the future. It’s not without risks since they could end up losing money if they don’t (or cannot) buy the property when the lease expires. It’s vital for buyers to read and understand every word of the contract and know exactly what they’re getting into.

For example, if the contract can become void if the buyer is late on one payment – he or she needs to know that in advance. Or if the seller can evict the buyer for not doing repairs, that needs to be understood before committing. A rent-to-own agreement is a legally binding contract that often includes complicated language. Even if a real estate agent assists with the process, it is essential for buyers to consult with a qualified real estate attorney who can clarify the contract and their rights, before signing anything.”

Read more: Rent-To-Own Homes: How The Process Works | Investopedia http://www.investopedia.com/articles/personal-finance/100714/renttoown-homes-how-process-works.asp#ixzz4ZM2PsABY
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