What should I take into account when I consider setting up a rent-to-own situation versus selling my house in the usual way? Can we both build equity?

(0) | asked by: Katy Eastep | share | 27 months ago | Report
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answer by Rodolfo De Hoyos    |   Visit My Website   |   Contact Me
Yes, sort of... I've been doing lease options for over 17 years and we can structure the deal to benefit all parties. You for the future appreciation and them with the tax benefits.
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4 months ago  |   Report   |   share
answer by Linda Lindley    |   Visit My Website   |   Contact Me
Hello Katy, There are pros and cons to a "Lease with Option" or a "Lease Purchase". A few of the pros may include: 1) for tax purposes the home is still yours, 2) if the market is slow it will be nice having someone in there to pay rent which can be used to pay the mortgage, the utilities, and maintain the home. A few the cons might include: 1) you are still ultimately responsible for the home 2) you may have equity tied up in the home, 3) if the purchase falls through, depending on the market your home may appreciate or depreciate. Everyone's situation is different. Every property is different. Your Realtor can provide your with information that can assist you in making the smartest choice for your particular property. If you choose to move forward...A professionally negotiated agreement could be prepared to protect both the buyer and the seller's interests.
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4 months ago  |   Report   |   share
answer by Mark Kavanagh    |   Visit My Website   |   Contact Me
Risk is significantly higher, since you still own the property and presumably still owe a mortgage. Moving parts include, term, rent amounts, down payment and/or option monies, amount of credit per payment toward down payment/closing credits, ALL of the typical purchase variables as well as ALL of the typical Lease variables...And yes, they can work...AND, YES you should consult attorneys, financial advisors etc... to limit the risk to an acceptable amount.
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4 months ago  |   Report   |   share
answer by Steven MacDougall    |   Visit My Website   |   Contact Me
It really depends on how long the rental period will be. I'm working on one right now where the buyer is about ready to get out of the penalty box and has found a home that fit's the families needs perfectly. In this case we're negotiating the sales price with a closing 4 months out, but in the mean time, the buyer will rent to cover the sellers carrying costs. If it's a year or longer buyers have offered a premium to convince reluctant sellers to all a rent to own situation. At the end of the rental term the seller and buyer can agree on the current market value. If the buyer wishes to complete the sale, the monthly premium they were paying can be used by the buyer as seller contribution to the buyers closing costs.
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27 months ago  |   Report   |   share
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