Rent To Own

[shanny06978]

What is the name of your state?FL
I was wondering if anyone can tell me where I can learn a little more about renting to own. I have a home I would like to get rid of and an interested buyer, but I don't know how it works so I would like to research it. Thanks for any help, I really appreciate it!

 

[FloridaRob]

1-get a signed contract between you and the buyer. GEt some money up front
2-have a limit on the time of the contract for him to get his financing. 1 yr, 2 yrs, 3 yrs, whatever you decide.
3-agree to the monthly payment to you. negotiate percentage rate, portion to payment, and amortization schedule
4-make sure the buyer pays you every month by CHECK. Not cash or money order. Lenders that will eventually approve the buyer want to see checks on time every month.
5-during the time allowed, the buyer should try to get permanent financing.
6-many lenders after one year will allow the buyer to base the loan on the appraised amount instead of the sales price. usually for a sale, it is whichever is lower.
7-at the end of the time allowed, if he does not have the financing in order, the home reverts to you in complete ownership.

 

[FloridaRob]

oh yea, and one last thing, I just noticed that you are from Davenport. call my office and get me to do the appraisal. LOL MY step daughter is my assistant and she lives in Southern Dunes in Haines City. I live and work out of Lakeland.

 

[nextwife]

On any transaction like this, do make sure an attorney drafts the agreement,and reviews all the papers. Thoroughly check out the proposed tenant/buyer by running a credit report and talking to the last two to three landlords- not just to most recent one. Limit who can reside in the property during the tenancy to only those you have checked out and approved. AND verify employment. Check this person or persons OUT completely.

However, I'd caution you to approach rent-to-own as a last resort, not a first. Maybe it's different in FL, but here in WI, in 25 years in the real estate buisness, the great majority of rent to own situations I came across turned out badly and never completed!

Try to do an outright sale first.

 

[shanny06978]

Cool, I will definitely give you a call if I need an appraisal. The house is in NW Winter Haven, so a sale may not be the best way to go. I really appreciate the advice, and I was planning, without a doubt, on getting a lawyer for all the paperwork. I am just not quite clear on how it works.

Southern Dunes... Hope she is safe and she has power!! We kind of lucked out being on the right side (west) of the eye, just a leaky roof.

Thanks again!

 

[FloridaRob]

she got power last sunday night. one of the last ones to get it. she stayed with us so it was alriight. hope the purchase works out for you....