How Does Rent to Own Work
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- เผยแพร่เมื่อ 26 ส.ค. 2024
- I find myself answering this question numerous times per day so I figured it’s way over due that I post an explanation. If you prefer to listen to the audio a few times simply dial 855.66PREFO (77336), X 824. There is a video post before this one on the blog as well.
Approximately 82% of the market cannot qualify TODAY for financing and typically would need to improve their credit to do so. Alternatively, other buyers with good credit are looking for a way to buy now while they save more instead of renting while they save.
We offer lease purchase (rent to own) properties only - no straight rent. All properties will require 3%-10% down and that is credited against your purchase price. You then pay a monthly lease payment. Some homes feature a small amount of that monthly also crediting the price and some do not. Some homes also feature our Down Payment Assistance Program. That works like this: on any given month you can put an extra payment toward the purchase price of $100-$500 ($100 increments) and receive a credit against the purchase price of 50% more. For example, if you have a month when you feel you can put an additional $200 down for your down payment, you receive $300 credit. The maximum in one month is $500 down so $750 credit. You can always put more down to improve your down payment for future financing, but the free equity you’ll get with the Down Payment Assistance Program is capped at $500.
During the course of the lease, you can use our credit consulting service we will refer you to. Whether you lease purchase one of our homes or not, you can certainly use them. They will give you a free consulting session and you can decide which course(s) of action to take with them. You access their site and schedule your first call here: www.MyCreditTea... and use promo code: prefo.
Sometime between 6 months and 24 months they can typically get you in great shape for your own loan. The time frame on our lease purchase properties ranges from 24 months to 10 years so you’re never rushed and we’ll help you purchase on your own eventually.
If you have not seen one of our properties yet, your next step would be to go ahead and schedule a viewing. Some are on lock boxes and you just need to get the instructions from us and others require private or group viewing with an owner.
All listings are on www.PrePropertySolutions.com and they only stay up while available and typically don’t last long!
Take the Rent To Own Step 1 Now.
Office: 855.66 PREFO (77336)
Fax: 401.633.7043
For Credit Repair: www.MyCreditTeam.com, Promo code: prefo
Pre Holdings, LLC, Pre Property Solutions and affiliated or subsidiary companies (“Pre Holdings”) are not real estate brokers or agents. Pre Holdings is a real estate investment company. All properties are either owned by Pre Holdings or the company has a purchase contract and/or option with the owner of the property, which Pre Holdings may assign to third parties. Pre Holdings is not a real estate brokerage and does not provide realtor services to the public, or to any of the parties to which it has contractual relationships.
We can help you find a great deal on investment property or a personal residence. Let us be your first choice when looking for properties, contractors, attorneys, agents, hard money, financing, or any other real estate need. We know the business and can offer immediate help.
![ถามตรงๆ กับ อาจตุพร ทำไม ประเทศไทย ใครเป็นนายก ก็โดนด่า พอออกเเล้วคนคิดถึง!!?? l [Nickynachat]](http://i.ytimg.com/vi/3YFLMXxBGAs/mqdefault.jpg)
If you CAN NOT AFFORD OR QUALIFY for a home now you will not be able to afford it then! I most certainly follow Dave Ramsey teachings but i also use common sense... so if you can not get a traditional home mortgage you are either in debt (that you need to pay off) or your income is not stable... youneed to get your affairs in order first! There is nothing wrong with wanting a house BUT you will be broke in a house trying to afford it! And if you have 3-20% down in a “rental property “ use that money to PAY OFF YOUR DEBTS WHICH IS WHY YOU COULD NOT GET A MORTGAGE! You have to walk before you can run
Britt R well said Britt. I agree with most of what you said. My personal opinion though is that Ramsey is good people and means well, but his plan is designed to keep you in the middle class. (Becoming a millionaire late in life, adjusted with inflation, you’ll probably be still living a middle class lifestyle.. nothing wrong with it)
I mix Dave Ramsey’s approach with that of Robert Kiyosaki’s to build wealth faster.
Britt R lol he’s scared of debt !! How do you think the Rich get Rich ? They leverage debt
@@Rhino-ux7yf exactly! Dave Ramsey works for people who are in W2 jobs, love it, and don't aspire to anything else. If you have aspirations of wealth or entrepreneurship, the Dave Ramsey philosophy will not work for you. Leveraging OPM will get you there but Dave hates OPM because he thinks it's debt, bondage, and a poverty mindset.
Preach girl thank you
Right
I payed for my house with the owner gave him $$$ a month for ## years. Simple as that. We shook on it looked eachother in the eye. Thats how bussiness should be done. Glad i never had to do this craaap.
It’s about trust….. only if things can be like that!
When did you buy your home, the 1950s? Sounds too good to be true
Sounds extremely dangerous for the owner
@@jay8130 how?
So I have been told ~ Do not sign a contract UNTIL you get Pre-Qualified for the loan amount for OR else you can lose everything at the end of the contract if you can not get approved. So you loose everything you have invested in the home, improvements repairs *which you the leaser) is responsible for once contract is signed...So NEVER sign a contract Without being Pre-Approved for a Home Loan 1st so you know how much you qualify for...Have someone who knows how it works with you b4 signing anything.
100% of our tenant/buyers are pre screened and if you are not able to be "mortgage ready" within the time frame we need for that particular home, we wouldn't accept you. We set you up to succeed not to fail.
"So I have been told" - that's the real problem with the internet. With all due respect, you use the terms "pre-qualified" and "pre-approved" as if they are the same. Neither of those are possible 2 years before the fact. The mortgage broker will "PRE-SCREEN" the tenant/buyers, and based on their improving situation, and maybe a credit repair company's forecast, will give an OPINION of whether these folks will be "mortgage ready" in 2 years. Sorry, Pre Property Solutions for "borrowing" some of your words.
Again, see a good real estate attorney who can write you some protective clauses.
Yes ,if you lease is 1 to 3 years if you cannot get someone to approve your loan at the end if the 3 year you will lease will be terminated and landlord may not give you a new lease .but if you get approved even before you don't have to wait to end the lease
If this were the case then those with bad credit need not apply for rent to own programs. But from this video it sounds like rent to own is a direct vehicle to repairing bad credit throughout that 24 month lease term
Thanks for this video. A lot of people are confused about rent to own homes, thanks for explaining both the good and the bad
Great job taking an easily confusing topic and breaking it down. Thanks Chris
I’m still confused😂😭😭😭 I feel so stupid! But I want to rent to own a home
Me toooooooo 😂😂😂
I don’t get it
did yall figure it out
Rent to own is great. I paid 300 dollars a month for 5 years and now I own it. Didn't even have to sign a contract it was just a verbal agreement with me and the land lord. I paid up and he signed it over. What more could you ask for.
Eastern Explorer hi boss canu send me the link
Eastern Explorer STFU
Wow
do not rent to own. My coworker went that route and the owner died. Owner’s child is reclaiming the house and my coworker is going through court to get her money back. I’d just rent normally, save for a down payment and get your own house when you’re able to.
I really enjoyed learning about rent to own homes this is a great video thank you for sharing
Who pays the tax, property insurance, etc expenses for the duration of the years before the owner gets paid off ? And can you put the price as adjustable for the appraised value of the time of selling in case the property value doubles or tripple
But does the rent your laying go toward the down payment?
I don't understand though. If you have 3-10 percent down, why not just use that money to pay down debt and better your credit score and get into a mortgage instead of an open ended agreement ?
Right
It depends on a persons financial situation
I like how he says market :)
"MAHKET!"
Your accent is amazing, great vid.
You answered the question I was wondering: can you just rent a rent-to-own like a lease. That's too bad because a lot of the interested places I find with good prices are rent-to-own.
Thank you so much!
Man, what a scam. I own properties and I thought about doing this until I realized how predatory it was, I couldn't sleep at night if I did this to people.
Once the lease to buy contract is in place does the "buyer" become responsible for all maintenance and repairs on the house even though they haven't actually bought the property yet?
Brianna René Yes Brianna that is correct. It's similar to owning only you don't have your mortgage in place yet. Our affiliated companies (two choices) wil lhelp you improve your credit and get you mortgage ready! Hope that helps. www.prepropertysolutions.com
+Pre Property Solutions your site seems to be down?
Brianna Rene m
@@Prepropertysolutionschannel do you still do rent to own?
@@heysimmone yes they do- you can go to prepropetysolutions.com or call Nick directly at 401.371.9235
Basically almost same page as a car lease but with more options
what profit is it to the seller?
if at the end of 24 months, property prices go up ( which generally they do unless there is some exception ) , seller is always at loss
Also you will be better of with an FHA loan rather than rent to own.
the dislike button being gone is so bad...you can't know if you're watching a video with good info or bad info without already having some knowledge on the subject now.
i'm sayin
MAAr'KIT
So basically it helps you build enough credit score in 2 years to get a loan and buy that same property.
have you ever had the renter's wanting to renegotiate the sell price a year after renting? and how do you handle it?
threaten them with a lawyer
@@k35856lol
No the price is set when the deal is done. If the price goes up then the seller would be happy, if it goes down then the purchaser would be happy. You’re agreeing on the price that day, just like if you were buying it. Now if you agreed the price and you put 10% down and the house value dropped 10% then you basically can buy or walk away. At that point it’s a wash. If the price goes up then you have instant equity. It’s a risk, but house prices always bounce back so long term it’s a good deal
Hi is great info thank, i looking to get info about this and there is something what can see yet, when I made a rent to own, let say I made a lease to the tenant for 2 years, at the end of that time I will sell them the property and that’s all???, they will looking for a lender who going to pay to my lender and my lender going to pay me the difference??? So if I buy a house 100k I put 20k if I rent to own and sell that in 110k my lender is going to give me 30k?? So rent to own is like sell property without realtor , and helping people to own a property if they need a house but they don’t have a credit scores or the down ??? Or I will keep the property for 30years and tenant will pay me rent and extra money for the value of the house ?
very well spoken.. you will have success with that confidence
Is that $100-500/mo option in ADDITION to $1,500/mo rent?
Yes it was--basically its a saving toward your down you will do later---
Yes, whatever you can afford. And if your situation changes, try to re-negotiate a new number, or better yet, make it a flexible amount from the start.
*_I AM A REAL ESTATE AGENT IN MIAMI AND I DEFINITELY WOULD NOT RECOMMEND IT , IT IS TOO RISKY TRANSACTION!_*
It actually isn’t a risky transaction. Chris has a proven process with a 95% close ratio. Those are great odds. Feel free to find out more at smartrealestatecoach.com. Have a great day Gigi
Hi there,
I am getting ready to embark in a rent to own contract with a friend. He owns the home and I will be buying. I have a few questions about this form of contract.
He will be losing on this house. he bought it for $190,000 but it is only worth around $125,000 these days. My question is, how is the monthly payment determined? Will i be covering his mortgage right now? the one he got when the house was worth $190,000? or will a new payment be created on the new price of the house?
Amanda Thompson HI Amanda -I'm sorry I don't know any of their details so it's not something I can answer but you'll want to know if the original mortgage is in place, what the payment is, if it's current, etc.. Anything we can help you with let us know and best of luck. www.prepropertysolutions.com
Hi Chris. Enjoyed your video but I was wondering from and investor/lessor's perspective, what percentage of options actually get exercised?
What if your on a lease agreement and when it’s time to apply for the loan, you don’t get approved? What’s next?
you lose your 10% and they sell it to someone that can buy a home. which is anyone with good credit and 10% deposit, and a job for 2 years
I'm interested
10 years NOT
did u know that all mortages are illegal u make the money for the house not the bank the bank takes ur applacation for a mortage is taken to the fed or bank of american that aplication is turned into a promisry note by the bank that note is insured at tripple its value then you sign for the first promisry note converted by you so the bank has ur money u created and got payed double so only person that owes money is the bank to u as u was never asked if u wanted ur promisry note insured and covered to the bank biggest con going thats how the banking system works
Please document source of this comment, i'm interested to see where you came up with this information. This would be helpful...
So what's the solution to this? What do you recommend people who need a place to live, do?
I OWN A HOME I WANT TO RENT TO OWN OUT, I NEED AN EDUCATION ON WHAT MY PART IN THIS WILL BE, WHAT MY OWN PERSONAL FEES WILL BE,WHO I GO TO TO GET PAPER WORK OR CONTRACTS ECT. IM LOCATED IN DALLAS / FT WORTH AREA SO IF YOU HAVE SOMEONE OUT THIS WAY TO HELP ME AS A HOME OWNER WHO WANT TO RENT TO OWN OUT TO SOMEONE. ID SURE APPRECIATE THAT HELP. THANK YOU
caps lock is on
@@cwr8618 IF ITS TOO LOUD TURN DOWN YOUR SPEAKERS
Thank you this was very helpful and informative 👍👍
I am basically trying myself to do this, so I guess we have To sign up with a credit repair company. In order to do rent to own for myself I was transferred Lexington law firm.. for they can run my credit and extra work. But why? Is it because the landlord or program is making sure your actually trying to improve what about I only have 1 collection accounts that been paid off.
Did Lexington law firm help you ???
Where are you located.
Can you do this with a VA loan?
The seller will want some down payment up front (option consideration). So, if you're thinking "nothing down", you might be better off with a conventional loan. I'm a veteran, but I find the VA very difficult to work with.
There is a company the Real Estate Agencies work with, the company only work with licensed real estate agents. The company purchase the home and lease to own to the buyer. This company has been around for a while and is unlike owner lease to own. This company is recognized by Major Real Estate Agency. However, they only service certain States. If interested in this company, contact me.
@@fragranceoutletz9289 I'd like more information please.
why not just post it. why do you want to give people the runaround and contact you
Does living in a renting house count as a property ?
How do you find tenant buyers
I'm married and have two kids. What if one wants to simply lease/rent the property without wanting to buy it at the end of the contract? Are there any options to get into that/negatives about to that option?
I'd like to lease/rent the property for 2 years, but may have to leave out of state to transfer to another university..which is why the rent to own option doesn't work for me yet, but I need the space for the kids for now..
Thanks for the video!
Hi there - you'd want to do a straight rental or lease if you think you may move, but we don't do those, sorry. Only alternative because the market is trending upward finally is to lock in your price on the 24-36 month lease/purchase and then you can always sell it at the end. That does assume appreciation though so it's not without risk of course. I do think a straight rental is safer for you until you know you're staying. Hope that helps.
***** Hi Greg - I think you may have some confusion with the process and the Q&A will help on the site www.prepropertysolutions.com and you can call me directly any time 401.608.2543. Also, we never have anything under $100k so that would be tough anyway. Not impossible for us to get something that low but highly unlikely.
i need something in Los Angeles city. preferably near the hills or near bel air. thanks
thank you for shearing information.
i have a question?
new neighbor moved to next my property with 5 years payment plan with rent to owne deal that means they are not owne the property yet.
and they start cut all big trees over 150ft tall and they traspass cut few of my big trees and solded.
im wandering how is responsble for damage?rentals? or property owner?
please halp thank you.
English. Your questions don't make sense.
@@ItalianoDio- ok
@@ItalianoDio-
I think some one cut off her trees that are part of her property but she dont know who she goes to since they renting to own.
Him or her sorry.
Also, how do you deal with the situation where they get to 24 months and still cannot buy?
Have language in your contract to give you automatic extensions for specific situations.
Hello Chris how we can contact you ?
This makes no sense. So you still need a down payment of $3k-25k that’s non refundable. At that point get an FHA loan.
how about PMI
I have a house, .49 acre private lot, low taxes, hardwood/built ins/2 bath/4bed. $69,000 tons of good paying jobs and 3 colleges in area. NE Iowa
Iowa has hi state income tax
Is this rent to own? Are you an investor?
What states do you do business in?
Is this guy from Boston?
Dude... are you serious? You have no clue what you are saying and are scrambling for words the entire video. Pulling bulling BS out of no where. Is this an educational video or did you post this as practice. Not to be mean but here's some feedback you desperately need. How about you begin by explaining who this "lease payment is going to" and "where this 3%-10% is being "held" for a down payment later on. Who and why is it being held? You're literally saying there is a program called a "rent to own" and "yes you can do it" and "I can help" but don't divulge into what it is or how it works. You wrote 6 numbers down like you know what you're talking about. No, this didn't help and the only thing you seem to actually KNOW is that someone can sign (their life away) and get into a home in a week. People are looking for clarity on what they're signing, not that they can screw themselves in under a week.
Duuuude, surf's up. Yes, he is serious; you seem to be the one who has no clue what he is saying. He was not not at all scrambling for words - you are apparently scrambling for understanding, and, as is so common with the mean-spirited trolls from the TH-cam watchers, you start bashing away with nothing to offer. He is doing what many good entrepreneurs do on TH-cam; condensing the subject down to less than 10 minutes and giving you a way to connect for more information, hoping to drum up more business. This is not a college course on real estate principals. Another point for the "life is either black or white" crowd: As he briefly pointed out in the video, all businesses have some bad apples. And some rent-to-own (lease-option) deals are indeed con jobs by shady landlord/investors. But many are a great opportunity for buyers test out the home and neighborhood, while improving their credit score. It's just a matter of constructing an equitable deal.
The reality in the U.S. today is that very few people have the discipline to save money, nor the knowledge of how to improve their credit. The lease-option motivates them and makes it happen "in spite of themselves". The transaction needs to be done right to avoid favoring one side or the other.
I am a licensed RE agent and an investor, and have done lease many lease-option deals, both as a buyer and seller. I have lost money as a seller by giving the tenant/buyers an option to purchase just before the market took off. I would have made a nice profit had I waited to sell. But the tenant/buyers benefited nicely from the appreciation. So, it can work both ways. What if the market goes down and you're holding the option to buy? Well, first, you don't have to buy - it's not a bilateral agreement - it's unilateral. The seller must sell to only you (or assigns), so you have the legal right to say "sorry, we're not buying", and just walk. Yes, you will probably lose your option consideration (which is why a buyer should try to keep the option money to a minimum) but you would also lose (probably much more) had you done a traditional transaction (oh, the short sale memories I have!).
Also...the bank may not make the loan based on the lower appraisal. Best thing to do is to re-negotiate the transaction with the seller, (which we've done) pointing out that, if we walk he would get less if he attempted to sell outright in the current market. Why not continue (extend this lease-option) with a new compromised price?
As this post is longer than I intended, I'll sum up by saying that in general, many tenant/buyers are unsophisticated and can get themselves involved in a sloppy deal, and thus the urban legend is born; "rent-to-own is a scam, don't do it, blah blah blah". My two-part advice, then, to all potential tenant/buyers would be to:
1) Stay away from real estate agents and brokers who don't own investment property; they don't understand lease-options and most are living commission-to-commission - they need that fix right now, not 2 years from now.
2) Cough up a few hundred bucks and see a good real estate attorney - they're worth their weight in gold.
William Scott There is nothing positive about renting to own and people should be aware of that. This guy is full of negatives attempting to take your money.
Greg M STFU
@@gregm1733 do you still do lease option investing?
@@heysimmone Hello. You can email me @ "IRentThenOwn@Gmail.com" and let me know what you are interested in. And where. Greg
hi. do u do deals in California?
This is so confusing
Who's responsible for the closing costs?
Closing costs to buyer and seller at final financing/closing? Those would be just like any other conventional sale so buyer and seller would incur their own expenses unless otherwise written in the contract. Hope that answered your questions. You can always email me at chris@prepropertysolutions.com or call 855.66PREFO, X800
KG Premium Homes koo
Needs to go slow, I'm still confused
Can you use other financers that require a low down or no down or do you have to use this financer and also did you say you have to put 20 K down to take it off the market? what does that mean, you can be in it and saving toward buying it and someone else can take it from under you that has 20 K ---I didn't understand that and also just as a tip---your presentation is good but slow down when you talk, I had to listen like 3 times to get what you said as it is very fast.
Angel, You definitely don't have to put $20K down to take it off the market - it's all negotiable. We advise tenant/buyers to try for the minimum, but the sellers usually want to see at least 3 %. He was just giving an example of tenant/buyers who "absolutely had to have this house", which a buyer should never do. It's just lumber and sheet rock. Hold onto that cash if you can.
And, once the option agreement is signed nobody can "take it from under you" because you have the exclusive right to buy. The seller can not sell the house to anyone but you. A good way to insure this is to record a "memorandum of option" in the county courthouse/records where the house is located. Failing that, the threat of a lawsuit from a real attorney (not you just saying it) will make them weak in the knees.
As for your first question (I'm going backwards), the seller is not your "financer"- he is not financing (loaning) you any money. He is really just a landlord/owner who is waiting for you to exercise your option, at which point you will then go see the financier - the bank/lender who will make you the loan. It's just like a traditional transaction - just delayed - like a super long escrow.
Yes, he spoke really fast, but I don't think he meant this video to be a basic training. For that I would recommend Wendy Patton, from Michigan, and one of her books called "Rent to Buy". I'm not affiliated with her business, but she has helped me immensely. And please see my post above for my two little bits of advice for tenant/buyers. Don't go it alone. Good luck and happy holidays.
The Maaaaaaket
I plan to rent to own until we finish the divorce then I plan to buy it
Do you still charge a cleaning deposit? Thanks.
Is that a Bastin accent ??? 👀
This sounds very scamyyy
So basically I’m buying the house twice
Mahhhket!
WTF DUDE? What if the bank still wont loan me after the 24 months? Do you get to keep my money? Dude, is this a scam?
You dont say anything about seller financing so im thinking the renter still need to try to get a loan from a bank which most banks will most likely decline.
its not a scam, you get pre-qualified to make sure your credit will get you the loan you need. if you have sucky credit you wont qualify for the rent to own program anyway. If you have a good broker, they will explain this to you.
Fixing your credit to get a loan is bullshit
credit goes bad bc you're paying things late or not at all. so you're saying, if your cousin owes money to his buddy that he doesn't intend to pay back, or he makes less money monthly than he owes, or has taken 3 years longer than they agreed to pay his buddy back, you're cool with loaning that cousin some dough too?
recorded on potato
Illegal surveillance
Hi do you have any location in South Carolina
nothing - only RI and Mass typically. Sometimes Ct
too fast
Do people does this kind of business because the house is not yours and you pay 3 to 10% that you wont get back (Money in the trash), the only person winning is who sells it.
The money is only in the trash, if you don't exercise your option to purchase. When you do exercise the purchase option, the money is put toward your down payment or equity for the buyer. The buyer has significant leverage as well as they can reap the benefit of a market trending up. (Ex. if the contract is signed at $100,000 and in 3 years it appreciates 1% each year, that $3,000 in equity is for the buyer to keep should they buy the house.)
Don't buy a home buy land this 8s is a scam
Dude I came here to learn but you totally went into left field with this! 👎👎👎