about-sidebar

Welcome To RTOExposed.com...

Hi, I'm Patrick.  I'm a blogger and internet marketing expert.  I've teamed up with my long time friend and full time real estate investor Steve Washinton.

After a lot of begging...he's agreed to share with me his secrets to buying houses without having good credit, or having to qualify for bank loans.  This information was previously only shared with his $5,000 coaching students!!

Together we're going to expose the secrets about Rent To Own properties that most investors don't want you to know.  Most important, we'll be sharing with you strategies and tips that you can use to buy a home for yourself.

These are the same strategies real estate investors use every day to buy houses with hardly any money out of pocket, and no credit checks.

Here's to home ownership for everyone!

Patrick Malone

Why Settle For Rent-To-Own When You Can Own?

 

If you’re reading this right now then you’re probably interested in learning more about rent to own properties and how you can own your own home.

I have a lot of respect for someone who takes initiative to look into home ownership. The mindset behind this is

“I don’t want to be just a renter anymore, I really want to plant roots in a place and have pride of ownership”.

And I think this is a rather worthy position to take. However there can be a lot of pitfalls to a Rent To Own agreement you should be aware of.

That is why my partner and I have decided to team up and write out an entire A – Z, step by step blueprint on how you can own your own home in the next 90 days.

It’s our goal on this site to share with you all the knowledge we have about the rent to own/lease option process, as well as home ownership.

So What Exactly Is Rent to Own?

Renting to own a property in its traditional sense is the process of renting a property with the intention of eventually purchasing this property from the property owner. This is also know as a “lease option” or “lease purchase”.

As far as paperwork goes…you usually will have a normal rental lease agreement and then an “option to buy” agreement that goes along with that.

The lease agreement will outline the terms of the lease, and the option agreement will outline how long you have to purchase the property as well as the option “purchase price”.

Often times this deal is brought about because the tenant may not be in a position to qualify for a mortgage from a bank or lending institution.

The seller who is usually a real estate investor instead allow the homeowner a period of time usually 1 – 3 years to get their credit & finances cleaned up and in a position where they can later perform and purchase the property outright.

In exchange for this delayed and no guarantee future sale, the property owner will require a non-refundable down-payment around 2 – 3% of the purchase price.

In addition to this the owner will sometimes offer a concession to the homeowner of a “rent credit” which is a portion of your rent going towards your down-payment or purchase price if and when you purchase the property.

This rent credit can be anywhere from $50 to a few hundred dollars a month. On the surface this may seem like a great deal for you as the tenant buyer.  But there are some major concerns for your to consider.

Things To Consider Before Doing Rent To Own

1. What if you cant qualify for a mortgage in  the 1 – 3 years time

The truth of the matters is that while 1 – 3 years seems like an eternity , If you think back about what life was like a year or two ago it probably wasn’t that different then it is now.

I say all this to say that you risk your deposit, down-payment, and any other rent credits you paid if you are unable to get your finances and credit squeaky clean in time to qualify for a mortgage.

2. What if the owner doesn’t pay their Mortgage and the house goes in foreclosure?

In the economy we live in today renters are experiencing more and more the dilema of living in a home that unbeknownst to them is going thru foreclosure. You can search all over the web of cases like this happening in every state across the country.

This was so prevalent that Congress and lawmakers had to get involved to try and mitigate this. And while there has been some policy set in place to add a layer of protection for the tenant it is not flawless and most certainly does not protect a Rent-To-Own buyers agreement made with the previous property owner in the event of a foreclosure.

In other words…Unless you are certain that the property owner is making the mortgage payments on time every time you may be investing thousands of dollars in downpayments and rent credits in a property you will never end up owning.

And in case your thinking “well I’ll just sue the owner if that happens”. You’ll have to get in line behind the mortgage company who will also likely have a law suit against the owner.

3.  What if the house doesnt Appraise in 1 – 3 years?

So you have just agreed to a purchase a property at a later date of 1 – 3 years from now and this time passes and now you have to perform on your purchase.

And lets say by some miracle you have everything in order, your finances, your credit, down-payment, everything is perfect from your end.

However if the property doesn’t appraise for an amount equal to or greater than your purchase you have a big problem on your hands.

In most Rent to own purchase contracts there is no provision that says “This property is being sold for X amount of Dollars or for less if the property doesn’t Appraise for that much”.

No way… What the purchase contract says is you have to pay X amount and figuring out how your going to pay that amount is your problem.

And if you don’t pay… you risk losing any and all monies that you put down, rent credits, and any improvements you’ve made to the property.

Not to mention the embarrassment of suddenly having to move from what you told your family and friends is “your” house.

4. The True Freedom of 100% Property Ownership

Having grown up in a home where we rented a property, I know first hand (now that I am a homeowner) that there is nothing quite like owning your home.

The feeling of being able to paint a house whatever color you want, adding a deck or an addition, making cosmetic changes to the kitchens and bathrooms, or whatever you want to do to your home without having to ask anyone’s opinion.

It’s an amazing feeling and any hardworking person deserves the right to experience this.

With a rent to own agreement you are still under the control of the landlord/owner. They are still the person who has the final decision on what you can or can not do with “your” house.

Top 10 Most Popular Rent To Own Cities

 

1. Houston, TX

2. Charlotte, NC

3. Atlanta, GA

4. Dallas, TX

5. Raleigh, NC

6. Columbus, OH

7. Jacksonville, FL

8. Chicago, IL

9. Orlando, FL

10. Tampa, FL

 

A Better Alternative

 

You may be asking yourself what other options do you have if going the rent to own route doesn’t live up to they hype.

Well let me tell you that you can’t go wrong when you get the deed to a house. Meaning you actually take title and OWN the property!

My Partner and I have written a book on “How to buy your dream home in the next 30 days without cash or credit”.

This book literally lays out how my friend Steve has bought and sold hundreds of properties as a real estate investor without using cash or credit and how we can teach you his secret strategy that will show you the exact steps you too can take to buy a lovely home for you and your family to live in without worrying about any of the above pitfalls.

Click here and we will send you this book right away free of charge just for visiting our website.

Why Settle for Rent to Own when You Can Own the house even with bad credit.

{ 0 comments… add one now }

Leave a Comment