Why Rent...When You Can RentToOwn?
Ok, so you want to do a RentToOwn. Well, there are 2 parties involved in a RentToOwn transaction, the Tenant and the Investor. The Tenant will Rent the home from the Investor for a period that is determined by their credit and their ability to qualify for a mortgage.
Once you have a Tenant and an Investor, then read Step 2.
Ok, so you want to do a RentToOwn. Well, there are 2 parties involved in a RentToOwn transaction, the Tenant and the Investor. The Tenant will Rent the home from the Investor for a period that is determined by their credit and their ability to qualify for a mortgage.
Once you have a Tenant and an Investor, then read Step 2.
We will meet with both the Tenant and the Investor, at our office, and together we will determine the monthly rent, Option to Purchase (Tenants right to buy the home) and Lease Option Credits (how much the Tenant will save) based on the value of the home to be purchased.
Assuming both parties agree with the financial side of the RentToOwn transaction, proceed to Step 3.
Now that both parties agree on the financial obligations of the RentToOwn, its time to start thinking about what kind of home and where to purchase. Our parent company, Capital Homes Realty, will work with both parties to ensure that the Tenant finds the right home at the right price and will take care of drafting up all the paperwork…the Agreement to Lease and the Option to Purchase. The sale of the home will be conditional for a period of 7 – 14 days. During this time we will work on Step 4.
Congratulations! You have purchased a home and are now almost ready to begin the RentToOwn stage, but you do want to make sure you’re legally protected, right? We will encourage you to visit our Real Estate lawyer who will help make the RentToOwn forms legal and binding…so at the end of the RentToOwn term there are no concerns about how to proceed. The sale of the home will be conditional on both parties getting the go ahead from the Lawyer.
