Rent to Own Real Estate

Types:

1. OPTION-to-PURCHASE  -  Exercise your right to purchase for an agreed upon price at the end of the term. NOT obligated, can walk away!
2. LEASE - PURCHASE  -  Agree to buy the home at the end of the term or penalty fees apply.

Process:      RENT-TO OWN  -  similar to traditional lease     OPTION DEPOSIT  -  2% -5% deposit upfront non-refundable but MAY go toward eventual downpayment on the home - ‘check contract’     RENT PAYMENTS   -  part of rent premium goes toward the downpayment or purchase price.     CONTRACT TERM  -  1-5 years, rent premium MAY be lost if you don’t purchase - ‘check contract’     AGREED-UPON PURCHASE PRICE  -  usually agreed to at the beginning with projected sale value to the end of the term. But may be at the end after a CMA - ‘check contract’

NEED:      Renters insurance      Utilities      Maintenance & Repair