If you are a dreamer of real estate and want to be able to help those who have been through some rough patches but have been good people, then this type of investing may appeal to you. You will first purchase properties, and then enter into a lease to buy agreement with those who can not get financing.
This type is great for making money while also helping your fellow man. First, renters don’t own any interest in a property. Renters often don’t pay much attention to damage to the property besides how it affects them security deposit. However, those who want to eventually own the property will be more inclined than renters to take excellent care of the exterior and interior of their rental home. This means that they can expect the property to appreciate in value regardless of whether they choose to buy it.
This is also a benefit to you as these properties are more in demand than typical rental properties and can fill up much faster if the sale of the property falls through. Most often, sales are halted due to work-related transfer, divorce, or inability of getting financing even with the money escrowed. The good news? Even if the sale fails, you can always try again. And the house won’t stay empty for long.
Many benefits come with leasing from you. First, you will put a predetermined and agreed upon amount each month rent towards your down payment at the conclusion of the previously agreed-upon time. This allows them the flexibility to save money without having to worry about it every month. This agreement gives them more freedom than renting a home to make renovations, paint and decorate.
The best thing about leasing to own is the time they have to sort out their financial affairs and start saving money, improving their credit, and making other positive steps towards home ownership. They also have the chance to live in the home. Many homeowners wish they could have had a 2-year trial on their homes prior to making a final commitment. They get to meet many of their neighbors, learn about the area, the commute, shops, and entertainment. These are great information for anyone leasing the property to learn about the neighborhood, the schools and the local commute before making a final commitment to buy the property. It keeps your pocket money full month after month. Any excess that is not used to cover the downpayment will be refunded to you, if the owner decides to sell the property after the two-year period or the agreed upon time frame.
Many people find it difficult to decide whether to rent or buy real estate. For whatever reason, they feel that the lease to own route is unfairly targeting some people. That’s something you will have a hard time deciding on. Although it’s not a common service, many people would like it to be offered more often. This can be a great help for those who are in a difficult time but have been punctual with payments and, at the core of it, are decent people who deserve a break. By offering a fair amount for an arrangement that is mutually beneficial, you can help to dispel the feeling of taking advantage.
