Lease to Own Real Estate
Credit problems plague people across the globe. These problems can lead to many other problems not limited to difficulty purchasing vehicles, getting jobs, opening checking accounts, and purchasing or renting a home. For those who are experiencing credit problems hope seems like a long lost commodity when it comes to the very American dream of owning a home of one's own.
The good news is that there are some savvy investors around that are willing to take the risk on those who have had credit problems but are attempting to get their lives back in order. The bad news is that this good will often comes at a rather high price to the consumers. Getting into trouble with credit takes a while from which to recover. For many the process is long and filled with pitfalls and missteps along the way. For those that are living the nightmare of poor credit there are times in which the situation must seem hopeless.
For this reason investors that offer lease to own real estate to those with less than spectacular credit are often viewed as saviors on the one hand and villains on the other. However, they are taking a risk that others are unwilling to take on a person that has proven not to be the best credit risk in the business. In other words, many would find that they are justified by charging a higher price or interest rate than traditional lending institutions will charge. After all, it is their money that is on the line if the lessee decides to default on the contract. It is also their money that will be required to make any repairs that will be needed if eviction becomes a necessary conclusion.
For investors who are interested in 'buy and hold' investing this is one way of making that system work in their favor. Many times the 'buyers' will find another property after a couple of years and will have essentially rented the property for a specified amount of time. At other times they will seek alternative financing once they have been able to straighten out their credit situations. Either way there are many occasions when the property is returned to the investor and has turned a relatively decent profit while holding those who took some degree of 'pride of ownership' in the property during that time rather than ordinary renters who often have little or no regard for the condition of the landlord's property.
There is more than one way that a lease to own deal can work. The most common however, is that there is a specified amount of time typically 2-5 years in which those that are leasing the property can live in the property with a portion of the monthly lease being applied towards a down payment for the property once they are able to get traditional financing. If a twenty percent down payment is achieved during that time the odds of them being approved for a loan are greatly improved. If they (being the lessees) combine this opportunity with serious efforts to improve their credit scores then there should be no problem achieving this.
As a real estate investor this situation is so much more attractive than renters for many reasons. First of all, the maintenance in these cases becomes the problem of the lessees rather than your problem, you have 'renters' that are hoping to have ownership of the property in time, and you can charge a little more each month for rent in order to cover the money being applied to the down payment on the property.
605
|
Are You Committed to Your Real Estate Investment? There are many questions that should be asked before embarking upon a ...
read more
Benefits of Flipping Real Estate The obvious benefit and sought after benefit of flipping real estate is the profit. This ...
read more
Buying Real Estate for Your Family The very best and most enjoyable reason to purchase real estate by far is ...
read more
Buying Real Estate Foreclosures When looking for a home for you and your family you will come across all kinds ...
read more
Common Risks Faced by Property "Flippers" The first thing that should be noted is that flipping houses is a great ...
read more
Common Risks Involved in Real Estate Investments While a good many millionaires will agree that their fortunes were made in ...
read more
Curb Appeal Matters When Selling Real Estate First impressions matter most. This is one concept that many homeowners trying to ...
read more
Does Staging Sell Real Estate? There is something to be said about a neat and tidy house when you are ...
read more
Finding the Right Realtor for Your Real Estate Needs Whether you are looking for a home of your very own ...
read more
Flipping Houses for Fast Real Estate Profit One of the rising stars when it comes to real estate investment is ...
read more
Flipping Houses for Fun and Profit For those of you who watch on the edges of your seats week after ...
read more
Has Television Changed the Face of Real Estate Investing? If you take a look through the television stations on almost ...
read more
How to Find a Good Real Estate Investment Property There are many ways in which you can find a great ...
read more
Is an Inspection Really Necessary? One question that seems to be commonly asked among those who are interested in real ...
read more
Is Real Estate Investing for You? There are all types of investments in this day and age. One of the ...
read more
Lease to Own Real Estate Credit problems plague people across the globe. These problems can lead to many other problems ...
read more
Mortgage Advice for Residential Real Estate When it comes to owning property many people around the world will tell you ...
read more
Real Estate Investing for the First Timer You have probably read all the information on the market as it relates ...
read more
Real Estate Investing There are many methods for building fortunes in the world today. One of the most accessible even ...
read more
Real Estate Investors Offer Perks to Retain Tenants What tenant wouldn't love the allure of high speed Internet and a ...
read more
Selling Real Estate in a Sluggish Market Real estate is one commodity that many depend upon to get them through ...
read more
The Flipside of Flipping Houses Television programming and infomercials of all styles will have you believe that flipping houses is ...
read more
Things to Avoid When Flipping Real Estate Flipping property is rising in popularity as a form of real estate investing. ...
read more
Things to Look for When Buying Personal Real Estate There are all kinds of things you will want to consider ...
read more
What is Pre-Construction Real Estate Investing? The idea of pre-construction investments when it comes to real estate is actually quite ...
read more
|
|
|
Disclaimer:
The Publisher has strived to be as accurate and complete as possible in
the creation of this website, notwithstanding the fact that he does not
warrant or represent at any time that the contents within are accurate
due to the rapidly changing nature of the Internet.
This site
is a common sense guide to Lease to Own Real Estate. In practical advice websites,
like anything else in life, there are no guarantees of income made.
Readers are cautioned to reply on their own judgment about their
individual circumstances to act accordingly.
This site
is not intended for use as a source of legal, business, accounting or
financial advice. All readers are advised to seek services of competent
professionals in legal, business, accounting, and finance field.
Any
perceived slights of specific people or organizations are unintentional.
|