Are Rent-to-Own Deals Too Good to Be True?
The recent roller coaster ride witnessed in the economy and housing market has revived the trend of rent-to-own and owner financing options. This practice has risen to a level not seen since the real estate investing gurus of the 80s started talking about ‘no money down’ real estate. Rent-to-own appeal for real estate investors and the average individual interested in buying a home is clearly huge. It means not having to jump through all the hoops of conventional mortgage lenders. They often provide preferred terms and allow buyers to get into a property while home prices are so attractive. Of course, many of the ‘no down payment’ tactics of the past no longer work or have been regulated. Tough times and chaos in the markets have also spawned many fraudulent scams which have opportunists advertising homes for sale on programs like these. However, this doesn’t mean that rent to own or seller financing can’t work or is too good to be true. There are many legitimate offerings of seller financing and rent to own opportunities all across the United States. Some may offer the ability to put little to no money down, while other sellers may demand hefty down payments for the opportunity. Rent-to-own opportunities can be great deals for regular home buyers and investors alike. Yet, proper and thorough upfront due diligence is essential, as is analyzing the terms and comparing them to other options. So make sure you read the fine print, but don’t instantly dismiss what could be one of the best wealth building opportunities of your lifetime either. There are many benefits of rent-to-own for buyers and real estate investing companies, but make sure you know all of the pros and cons.
Are rent to own and seller financing advertisements real, or are they too good to be true?