Oct 08


Dean Graziosi has noted an upward trend in the lease to buy market. But why would people choose this method? There are really several reasons why a lease to buy option is appealing, but first let’s go over what a lease to buy option is. It is a contract that lets renters lease a property and at the end of the lease they can decide whether they want to buy the home or not.

It’s a great option for buyers who have poor credit. It is a way that they can repair credit and get ready for home ownership.  The seller finds that the properties that were once empty and produced little or no money start producing money when on a lease to own option, so it’s a win- win situation.

 

Private sellers are finding that this method helps get the home sold and even developers who have too many properties are finding this to be a workable option. So, if you want to own your first real estate property and are having problems doing so, then you might want to look into this option.

 

Dean Graziosi has said, ¨In some of the large metropolitan areas, where the real estate market is soft, developers are also trying these rent to own programs to get condos and homes sold.¨ And if you are a first time home buyer then this just might work.

 

One thing you should do is study the lease option, and hire an expert that can help you negotiate the contract, and can help you understand the terms.

 

  • First of all, when the landlord offers the lease to won option at a certain price, the tenant has to pay a fee up front to get that price on the home when the lease is up.  This fee is non refundable.

 

  • You should also try to negotiate a part of the monthly rent as part of the down payment toward the purchase of the property.

 

  • Make sure that during the term of the lease you are the only one who has an option to buy the property.

 

  • Before you enter the home do a home inspection and write down all necessary repairs.

 

  • Be sure that all the payments on the house are being made by the owner, that the taxes and insurance are paid up.

 

  • Make sure there are no leans against the home

 

Whether you are thinking of entering a rent to own agreement or buying a property outright, you want to make sure that everything is in writing and that your rights are protected. Dean Graziosi believes that it is usually best to hire an attorney to help you get this done. It’s preferable to spend a little in the beginning, rather than a lot in the end.

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