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Rent
2 Own a Home
If you would like to know about our California "Rent 2 Own" Homes as soon as they become available
in Marin County, San Diego County or Sonoma County ( and before they are advertised to the general
public) please click the following
links...
Marin
County
San
Diego County
Sonoma
County
... to be Added to Our email Notification
List
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Benefits of Lease
Purchase for the Tenant Buyer
- Maximum Leverage: You don’t need a 10-20% Down Payment to get
into the Property. When you buy a Lease Purchase (Rent 2 Own) home, you
can put down as little as first month's rent, a security deposit and a
2% to 4% option deposit. We can even spread some of this over monthly
payments.
- You are spending very little money to control a very expensive,
and very profitable, piece of real estate. You will be put in full
legal control of the home for a specified period of time without
actually having to own it.
- Compare that to a typical bank or lender who requires 10-20%
down.
- What is Option Consideration (Option Deposit)?
- It is the upfront money you pay the seller in order to
lock in the purchase price for 1 – 2 years.
- When you sign a Lease Purchase contract, you will pay the seller
an option deposit. This money is your vested interest in the home
and will be fully (100%) credited toward purchase price when you buy
the home.
- Rent Money is Working Toward the Purchase of a Home: Every
month a portion of your rent payment (typically 25% to 100% of your
monthly rent/lease payment, depending on the home) is credited towards
your down payment or off the sales price. This rent credit goes toward
the final purchase price of the property. You are buying the property
while renting it. Equity accumulates much faster than with conventional
financing through a bank or lender.
- Why Does a Landlord Give a Rent Credit? The Landlord gives a
rent credit to the tenant as an incentive to pay their rent on time and
take care of the minor maintenance and repair on the property.
- How Can He Afford to Give a Rent Credit? Since realtors are
usually not involved with this type of transaction, there is no
commission and the landlord can afford to pass along the savings to the
tenant/buyer in the form of rent credits.
- Frequently No Down Payment at Closing - Minimum Cash Out of
Pocket : Since you have given the seller up front option money and you
have been receiving monthly rent credits, there will frequently be very
little or nothing left to pay for a down payment at closing.
- Profits from Appreciation: Since the sales price is locked in
before closing (as specified in your agreement), any increase in
property value will mean that your equity (the amount you owe minus what
it's worth) is increasing in the home.
- Credit Problems are Okay: Qualification restrictions simply
do not exist. You will be
approved at the sole discretion of the seller.
- No Lengthy Escrows or Mortgage Approvals: Your approval will
be based solely at the discretion of the seller instead of a lender who
can take up to a month (or longer) to render a decision.
- No Taxes, Less Liability: Since you do not own the home
(yet), you will not have to pay property taxes and your liability
exposure will be dramatically reduced.
- Quick Move In Time: You can typically take possession of the
home in less than one week instead of conventional move in times of one
to three months after your offer was accepted.
- Time: Before you actually buy the home, you will have 12-24
months (depending on your agreement) to save for a down payment, repair
your credit, find the best mortgage interest rates, investigate the home
and research the neighborhood and/or schools.
- Minimal Maintenance: Major maintenance and repair problems or
any maintenance problems that exceed a certain amount of money are the
responsibility of the owner.
- Privacy: Your name will not be on the deed (or any other
public records) until you exercise your option to buy.
- Peace of Mind: You will have full control of the home knowing
that you have the exclusive right to buy the home at a future date.
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