Rent to Own is a service to YOU. You are spending your money. You should feel like the customer and YOUR needs should be met

Discussion: If you do not qualify for a loan today, or if the down payment requirement exceeds your resources, and you are committed to buying your own home, today, rent to own may be a good option. What exactly is rent to own? Rent to own enables someone, the “Buyer,” who otherwise could not secure a mortgage commitment, to eventually own their own home. They rent a property for a set period with a legal contract to purchase the property at the end of the set period of time. The person offering the home for sale is referred to as the “Seller.” Generally there is a down payment which is credited to the Buyer at the time of his purchase. Sometimes, a portion of the rent is credited toward the down payment. In most cases, failure to complete the contract results in forfeiture of all monies contributed. There are many loopholes and conditions in these contracts, so it is important to have those contracts reviewed by an attorney. See item 7 below for more explanation of the importance of an attorney.

Another misconception in the real estate world and the rent to own world is that there are great number of qualified rent to own “buyers,” and that the buyer should be considered lucky to get into a rent to own deal. The fact is that there are many more properties offered as rent to own than there are qualified buyers. So, my message to you is that you are in the driver’s seat when it comes to participating in a rent to own contract. Sales are soft across the real estate market. Qualified buyers are a rare commodity. You are spending your hard earned money to make monthly payments, to pay utilities, and to continue renting a property and paying someone else’s mortgage (until you succeed in acquiring the property on your own). The point I’m trying to make here is that you are the customer spending your money, no differently than if you were going into a retail store to buy a product. You should be “courted” for doing the deal. You should be treated as the customer. You should be treated with respect. Your Seller should be able to demonstrate the financial benefits of participating in the rent to own contract in black and white easy to understand figures. You are investing in the rent to own process. There should be a return on your investment. If the Seller cannot demonstrate these benefits to you, you may be better off continuing to save on your own and waiting to qualify for a mortgage.