Rent to own is a real option that has helped thousands of families buy their first home. As with anything - there is the potential for scams - so buyers DO need to beware when dealing with ANY real estate transaction as all of them have the potential for fraud. Thanks for helping bring awareness to the issue. I plan to sell my home using "rent-to own" where I will carry the paper for some buyers. I want to do this so that I can receive a stream of income from the property instead of just selling it for cash. I will ask more than market price for it and people will be willing to pay if they can bypass the bank and get direct financing. The buyers will make a payment to me every month - this is why most investors offer this option.
You do need to be careful though -
Always be sure to do a title search to make sure you understand who the owner is and what liens might be on the property. Buy title insurance to protect yourself from fraudulent sellers.
Always do a home inspection to make sure you are not dealing with asbestos or foundation issues
Great write up - thanks for sharing!
oh, I love it! What I have been doing is a discount lease. they pay on or before the due date and they get a portion put towards a down payment. yes, but you can run title and then something happens. I agree with title and inspection too! thanks for the comment!
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yes - I have seen that option also - it's the standard "rent-to own" model - I would be open to that to with the right down payment - but you are right about title - just because it is clean when you first start doesn't mean they cant put other liens on it still. Maybe an annual title search would be a good idea - there has to be a level of trust in a transaction like this because of all the unknowns - still a good option for many people if you can find a seller willing to do it.
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