Apartments and Home Rentals
Mortgages
Buildings

What is rent to own?

User Avatar
Wiki User
2008-12-06 01:42:05

"Rent to own" is when you rent an condo/house, and they give you

the option to buy it after you rent it for the term of the lease.

They will usually give you like 10 to 20 percent of the total

amount of money you paid in rent of the lease term, to take off the

total cost of the condo/house. Good luck! It's cheaper to just but

so weigh your options. Rent to Own and Lease to Own are very

similar strategies. There is an option consideration that is paid

upfront (typically between 3-5% if an investor, and 2-3 months rent

if a one-time seller). This money buys your ability to purchase the

house, over a set period of time (1-5 yrs typically), for a

pre-negotiated price, and is almost always credited towards the

purchase of the house. The Advantages to the Seller are numerous. *

No real estate commission to pay (not realtors). * No maintenance

problems. * Prompt payment of rent. * All the terms of the purchase

are negotiated in advance. * Seller retains all tax benefits until

the sale and much more. * Positive monthly cash flow to offset

losses For the Buyer * Time to shop around for best financing

options * Live in the house before you buy it * Meet the neighbors

and neighborhood before making long term decision * Large rent

credits (25-100%) for prompt payment You can get more information

at www.iLease-a-House.com. They cater to buyers, sellers, and

investors.


Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.