Thread: Rent to Own?

Yes, you can do a rent to own on the house even though you still owe money on it. The deed won't get recorded until your renters pay you the full amount and at that time you pay off the original loan.

Get professional help doing it so you don't find yourself in a bind later on.

Thank you Greg.

Originally Posted by jinks

I don't know if this is the right board to ask this question. If not, please feel free to move it.

I live in AZ and have a home that I am buying (just refinanced). I'm wondering if I can do a rent to own on the home even though it is not paid for? I would appreciate any info you can provide. Thank you ahead of time.

You can do the transaction you contemplate. There are many questions and potential problems. How much option money, what happens to the option money, payments, maintenance, financing, closing, etc.

Get someone who has done some before.

Originally Posted by tucsonhomes

You can do the transaction you contemplate. There are many questions and potential problems. How much option money, what happens to the option money, payments, maintenance, financing, closing, etc.

Get someone who has done some before.

I kind of thought there would be an escrow and that one escrow would pay the original escrow. I really don't know anyone to ask about this. Is there a website that deals with this?

Originally Posted by jinks

I kind of thought there would be an escrow and that one escrow would pay the original escrow. I really don't know anyone to ask about this. Is there a website that deals with this?

Given what your property is probably worth, even given market decline, why would you even think of not having a professional invloved?

Are there professionals who do rent to own? If so, I wasn't aware of it. Where do I find someone?

I rent to own =)

Please explain.

Many property owners are doing rent to owns now since it's so hard for anyone to get a loan. Good people who should qualify are getting turned down. The best part about a rent to own is that you get a quality "rent to own buyer" who will take good care of your home, because, if they plan on buying they usually won't destroy it. Also, the rent to own contract is a little different than the regular lease and they rent to own buyer assumes more responsibilty, they are to treat it and pay for things like a homeowner so you don't have to worry about middle of the night phone calls for a plumber. Unless, it is over a certain dollar figure, they are reasponsible to take care of it. Traditionally, rent to owns get a thing called 'option money' that is collected up front, usually between $3000 and $10,000, that is supposed to go towards the purchase price when the loan closes usually in 12-24 months. It is rather good faith money that they are serious about buying. If for some reason they decide not to buy at the end of the term they lose their 'option money'. This program is great for property owners, however, there is a very bad side to this right now in today's economy, this is why on all of my rent to own's, I am not charging option money anymore. Many homeowners are putting a rent to own buyer in there home that they are letting go to foreclosure and a lot of poeple are getting taken for a lot of money, only to get a letter from the bank withing 6-8 months saying they have to move out. They will never get there option money back or buy there home. Many rent to own buyers are afraid of this happening so, getting 'option money' is not very realistic with the high foreclosure rate and downed economy. There is a web-site you can go to for more information on rent to owns and also to list your property where rent to own buyers are already looking. It is New Start Dream Properties.Com
Also check out our other site at New Start Real Money Real Fast.Com

Good Luck!