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RE: Anyone have any experience with Rent-To-Own for homes?

Postby HonestAbe » Thu Jan 09, 2014 08:06:18 PM

The forum owner only allows his spam on this forum.
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RE: Anyone have any experience with Rent-To-Own for homes?

Postby AlissaT » Thu Jan 09, 2014 05:39:57 PM

Every now and again, some people will notice an article on some website someplace about a “rent-or-buy” showdown. Usually, it's a crock of manure, as much of the press appears to have been bought off by the financial industry, but from time to time, somebody gets it correct. If you need help paying your rent this month, you can get an installment loan.
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RE: Anyone have any experience with Rent-To-Own for homes?

Postby cmattric » Thu Jun 10, 2010 12:46:35 PM

It must be legal... Many companies advertise their properties online. Otherwise I am sure the authorities will do something about it. Here is a report explains some aspects of rent to own homes. As Richard says, you gotto do your due diligence. www.renthousestoown.com
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RE: Anyone have any experience with Rent-To-Own for homes?

Postby RichardC » Thu Apr 08, 2010 09:47:25 AM

It sounded like a scam at first too. Lots of new home builders offer it on their townhouse units now.

Apparently you get to pick any house you want, but there is a cost.

You come up with 10% down (regardless of your credit) as a security deposit to the lessor, you lease the house for that 3yrs from the investor and set a predetermined option to buy at the end of the 3yrs at the very beginning (usually a 3% p.a. increase in value)

At the end of the term you buy the house off them which has a small amount of equity in it and get a mortgage from a financial institution. So you go from a renter to a homeowner only when you assume ownership at the end.

The cost? The rent-to-own investor (lessor) apparently makes as much as a 40-60% return on their lease off the lessee (you) and if you don't stick to the payment plan for the lease period you lose your deposit to the investor because they are now stuck with the house and need to clean it up, and pay real estate fees to unload it.

I'm just wondering if anyone has had any good/bad experiences with these rent-to-own deals and what the general "feel" is about them. So far I can't find anything negative on the internet about this company or its owner. But on the flip side I haven't heard any raving fans either.

I've worked hard to build a great company and brand with a "A" rating with the BBB and don't want to associate my company with a bad business idea.
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RE: Anyone have any experience with Rent-To-Own for homes?

Postby Melissa28 » Thu Apr 08, 2010 09:15:18 AM

Richard:
This, honestly, sounds like a scam to me. I mean why would they do such a huge favor to people with messed up credits? Are they any sort of charity organization? Sounds too good to be true. If I'm wrong and it is really like you said, let me know please. I would also like to own an apartment or house that easily, plus I would not have to worry about credit scores.
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Anyone have any experience with Rent-To-Own for homes?

Postby RichardC » Wed Apr 07, 2010 05:40:51 PM

Just doing some due diligence on the matter. Googling etc. I had a company approach me to make the offering to my debt settlement clients.

Basically it gets people with bad credit and small down-payments into homeownership in 3 yrs. It puts them into a rental situation that turns into ownership at the end of the 3 yr lease with some of the payments going into equity.

It seems fairly straight forward and fills a gap, but I am wondering if anyone out there has had any good/bad experiences with any of these companies. before today, I barely knew this concept existed so I have no idea if its legit or just another scam.

Thanks in advance.
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