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Buy Or Sell Rent To Own - How Does Rent To Own Work? - Articles Surfing
Wouldn't it be great if you could buy or sell any home rent to own within a month or two tops? Well, it is possible and even probable if you know the right strategies and plan your moves carefully. Of course it is always a good idea to consult legal advice when buying or selling a home.
With the housing bubble bursting, it is currently a difficult time to sell a pre-existing home. Interest rates are rising, housing prices are falling and with so many people in debt foreclosures are increasing. There's currently something of a glut of homes on the market. If you are stuck in a variable-interest rate sub-prime home loan you may feel like you are caught in the grips of a very large trap.
There may be a way out. By selling your home rent to own you could help both yourself and the cash-strapped buyer who may have poor credit. Once you are out of your current mortgage you could rent, or now would be an excellent time to buy a home. There are tremendous deals out there currently with all the home foreclosures.
Here's how rent to own works. The buyer makes an agreement with the owner that part or all of the rent money will go towards the down payment of the home, after a length of time, usually 2-5 years, the renter will buy the home, using the extra rent money that was set aside as the down payment.
There is usually not much money put down initially, outside of the normal renter's deposit for a rental home, so this is a good way for a strapped individual to get into a home for little or no down payment.
Another advantage of rent to own for the buyer is that if you compare how much rent money is applied monthly to the home price, even if it is only 20-40%, it is basically all applied to principle in the form of an eventual down payment. This is very unlike a traditional loan where all the initial payments go up in smoke as interest. It is important for the buyer to note that if he cannot purchase the home in the agreed time period, he may have to move out and lose the extra rent money paid - planning is important.
Many real estate agents and established mortgage companies will advise home owners to not try to sell or buy homes via for-sale-by-owner or FISBO, but they have obvious interest in giving such advice - they won't make as much money if more people buy and sell their homes without the middle-men. If however, the seller is willing to take the time to learn the ropes, plans carefully, and consults legal advice - it can be done.
I have included two links to resources that can arm the buyer and seller with inside, minimally circulated information that can give them the knowledge to successfully profit from the current housing situation in the author's section below. Currently there exits great money saving and even profit potential in rent to own and foreclosure properties.
Home leasing is similar to rent to own, some money is paid up front in a lease agreement. The buy must plan to have good credit to purchase the home after the agreed time period. There are other strategies for the home seller to use in today's housing environment; rent to own, wholesales, pre-foreclosures, rehabs, lease Options, used private money, commercial money and the list goes on. If you are interested in buying or selling a home, now would be a great time to learn about all possible options, especially those used by the professionals and not normally offered to consumers as viable options.
Copyright © 1995 - Photius Coutsoukis (All Rights Reserved).
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