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How to Rent a House to Own

Julian Lee

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Rent a house to own can be a great way for your family to get into your dream home without crashing your families finances. This is not a new concept although we may see more of these contracts taking place with the ongoing housing market problems.

Who is a rent a house to own for? Well it can be a great plan for anyone but more specifically it is a great opportunity for those with blemished credit or who are low on cash for a down payment. This can also be an opportunity for those who are in the military or someone living in an area for a short time but wants to make an investment with their rent. This can be the perfect situation for the handyman that can trade his skills for a down payment on a home.

You can find the homes that are available as a rent a house to own through the seller. These are not typically found listed with real estate agents although there are agents that do specialize in a rent to own home. One website that you can either list your home you currently own on as a rent a house to own or you can pick from the homes they have a available as a rent a house to own option.

It is important if you are looking to rent a house to own that you are aware of the pitfalls that might occur. This can be a great option to get you in a home faster but there can be a downfall. In a rent a house to own you are entering into a contract. It is important to carefully read the contract. There have been cases where the sellers are evicting rather than selling and making even more profits from the home.

In a rent a house to own contract you will be paying a little higher rent or a little more than a mortgage would be. This is because you will be paying the normal renting fee plus an option to buy fee. Typically this fee and possibly even a portion of the rent will go towards the price of the home. The seller will give you a time frame as to when you must be able to secure a loan to buy the property. This time frame is usually a 3-5 years. This will give you ample time to repair your credit and even save a larger down payment. If you are unable to secure the loan at the end of that time period than all fees collected during the time period stay with the seller and are a loss for the buyer. So basically you are betting that you will be ready to buy a home in 3-5 years when you enter into a rent a house to own contract.

To find a rent a house to own in your area you will have to do a little leg work. These homes are often advertised in the local papers or even in want ad or websites like Craigslist. There are also websites like the one I mentioned earlier that will list rent a house to own for the seller much like a real estate agent. When choosing to rent a house to own be carefully to read the contracts thoroughly and even consult a lawyer or agent to help you negotiate the contract and ensure you are entering into a contract that you can make a winning bet on.

Julian Lee is an experienced Real Estate Investor and Internet Marketer from South Florida. To learn how to rent to own for a profit go to


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