Bob Holt of the “New Jersey News Room.com” reports that “owning a home is harder than it's been in years due to today's economy. Foreclosures and high unemployment rates have turned the long-time American dream into a nightmare.”
“But that doesn't mean owning your own home is impossible. Mortgage loans have been dropping to their lowest interest levels in years. You just need to have a solid game plan in mind…”
Maybe you’ve rented for years because of the misunderstanding you need a hugh down payment or because you have bad credit or simply you don’t want to get “locked” into a property for 30 years. One thing remain, you see no way out of the “Rental Scene”.
For a moment look at the big picture. If you’re in a two bedroom 1 bath apartment costing you $1,000 dollars a month (which is a low rent for many areas). After only five years you have paid $60,000 dollars into that property. If I may ask something? What do you have to show for it? Other than a pile of rent receipts and the dream to buy your own home.
The big question is how do you make the jump from a rental into home ownership?
The answer is RENT-TO-OWN. It’s the best way you can get into your home, Town house or Condo with the ease and convenience of renting, but with the control and leverage of a buyer.
Rent-to-own works by combining a residential lease with a Purchase Agreement. Each month a percentage of your rent goes towards the purchase price, its that simple.
Because there’s NO BANK QUALIFYING, RENT-TO-OWN is ideal if you have bad or “maxed out” credit, or a bankruptcy on your record. Or if you want a very easy way to get into a property. If right now you just dread going through the qualification process for a home loan. The waiting and wondering, only to be told “You Don’t Qualify”. Then RENT-TO-OWN IS THE WAY TO GO. What it does is it gives you “TIME”, an entire year or more if needed to sort through any problems or to find the best financing. While at the same time building up “SAVINGS” each month in the form of rent credit, that goes towards the purchase price.
Example
You choose a beautiful 3 bedroom 2 bath house, in a very nice part of town. The monthly rent is $1,000.00 dollars. Each month the renter receives $500.00 (50%) rent credit towards the purchase price of the property.
In addition to the rent credit, is an amount that is put down known as “Option Consideration”. This is 100% credited towards the purchase price. So, on our nice three bedroom house, let’s say that $5,000 dollars option consideration money is put towards the purchase price of the property. After only the first year, the total rent credit is $11,000 dollars ($500 X 12= $6,000 + $5,000).
This amount is not interest that is paid to a bank this is EQUITY (see the comparison chart below). At any time prior to lease expiration you can purchase the property without penalty.
Rent | Own | Rent-to-Own | |
Monthly Cost | $1,000 | $1,000 | $1,000 |
Down Payment | $1,000 | $15,000 | $5,000 |
1st YR, Cash Paid | $13,000 | $27,000 | $17,000 |
1st YR Equity | $0 | $250 | $11,000 |
Based on a 50% rent credit
The Truth
Find the figure below that is closest to your rent and just imagine……………
Rent | 1st YR | 2nd YR | 3rd YR |
$1,000 | $12,000 | $24,000 | $36,000 |
$1,100 | $13,200 | $26,400 | $39,600 |
$1,200 | $14,400 | $28,800 | $43,200 |
$1,300 | $15,600 | $31,200 | $46,800 |
$1,400 | $16,800 | $33,600 | $50,400 |
$1,500 | $18,000 | $36,000 | $54,000 |
$1,600 | $19,200 | $38,400 | $57,600 |
$1,700 | $20,400 | $40,800 | $61,200 |
$1,800 | $21,600 | $43,200 | $64,800 |
As you can see, your money quickly multiplies and leaves you. It is an up-river paddle to save money and pay rent.
How long will you rent and pay your landlord’s mortgage before you purchase your own home? Below you will find 17 Lease Purchase Advantages for Buyers.
1. Low down payment to get into property. The smart, modern way to buy real estate!
2. Qualification restrictions are not as great as in conventional financing.
3. Past credit problems are not usually a road block, as they would be in the case of conventional financing procedures.
4. The option consideration - down payment - is fully credited (one hundred percent) to the purchase price of the property.
5. Your rent money is finally working for you, for a change . . . (no longer merely collecting rent receipts)! Part of your rent payment can be credited to the purchase price if paid on time.
6. Purchase price is usually locked-in ahead of time (prior to close of escrow). That assures you of increased equity in the property when you buy it if appreciation has occurred.
7. Appreciation is the name for any increase in value of a property over a period of time in those cases in which the fair market value goes up in the future.
8. Gives you sufficient time to check out all the features (and faults) of the house.
9. Time to check out the neighborhood: schools, churches, temples, synagogues, nearby shopping malls, health care facilities, recreational amenities, your next door neighbor (Does he play loud music or run a power saw at 2:00 A.M., before you actually buy the house?). Important!
10. Puts you in legal control of a property for a specified period of time without having to actually own the property (and the responsibilities).
11. Time to shop for and obtain the best financing.
12. Leverage (using as little of your own money as possible to purchase a really nice house!)
13. Opportunity to get into a choice residential property at the right time, for little money down.
14. No taxes or insurance to pay . . . the owner does that.
15. Major maintenance and repairs are the responsibility of the owner; you take care of nothing but minor maintenance.
16. Profits . . . in case appreciation occurs and you decide to sell in the future. The difference between what you paid and any increase in fair market value is all yours!
17. It’s obvious that lease purchasing with an option to buy is much more advantageous than merely renting or immediately buying a house without, first, checking out the neighborhood and the various financing packages which may be available to you.
Questions
What happens at the end of a lease period and for some reason I still don’t qualify for financing?
When anyone whether they could qualify or not comes to the end of a lease period. They have several options. First, they can walk away from the property. Secondly, they can extend the lease for another year. Or the final and ultimate decision is to obtain the financing and purchase it.
Do you do a credit check and what happens if I have a bankruptcy or credit problem?
No, a rental history check is done. But things like bankruptcies, being turned down for a bank loan (conventional financing) or other credit problems are no concern to us in regard to getting you into a rent-to-own property.
If you are looking for a house, visit us online at http://www.nocreditcheckprogram.com/ and have your name added to our database. You will receive an e-mail when a home becomes available in the areas that you designate. We wish you the best in your search and hope that Immanuel Results Group, Inc (IRG) can assist you in locating your home. You have nothing to lose.
Sincerely,
Nicole
