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| You Can Buy a Rent-to-Own Home Anywhere in the USA. The Keys to Success are Preparation, the Game Plan, Credit Readiness. |
Greetings from a successful rent to own home seller and real estate investor,
At one time I was standing in your shoes, that is, on the outside looking in. I was cash poor and a disgruntled
tenant. I know first hand the frustrations of renting and not owning a home. Eventually, with steely
determination I overcame the odds and learned how to buy homes with no money down, with no credit and then
selling those homes for profits-many of which were sold as rent to own homes.
In the good ole US of A I believe home ownership is vital for many reasons, chief among them are;
For these reasons it causes me great pain when I see and hear of everyday, ordinary hard working folks get
taken advantage of and lose out. The dream of home ownership is alive and well and it is in this spirit, as the
French would call "Joie de vivre" or Joof that cause I offer to you valuable lessons I have learned along the way.
Prospective rent to own home buyers these days seem to ask me the same questions, "Can I Buy a rent to own
home with no credit or bad credit? How does rent to own homes work? Can I buy a rent to own home without a
down payment?"
These are all good questions and the correct answers really depend for the most part on you, the rent to own
home buyer. The secret to rent to own home ownership is there are no secrets. It is possible for anyone to buy
a rent to own home, regardless of credit or down payment. However, your odds of accomplishing this are
against you when you are competing in the marketplace against thousands of other rent to own home buyers,
many of whom come are prepared, come with a well-conceived game plan that includes having made vital steps
at correcting poor or bad credit scores.
Today, I teach real estate classes and one of the first things I tell my students is to have a clear understanding
that the path to home ownership is a journey first, a destination second. I have seen too many impatient
wanna-be rent to own homeowners lose everything because they didn't take the time to prepare, create a
game plan, then seize the opportunity.
Since you are here reading this you are probably serious about becoming a homeowner. If for now you are a
tenant I can talk with you as a typical landlord (or a rent to own home seller). And as a landlord there are many
things I look for in a prospective rent to own home buyer. If you can get just one tip from the story below then
you will have made significant progress on the path to becoming a homeowner. I wish you the very best.
Bud Spofford
Real Estate Investor and RTO Coach
---------------------------------------------------------------------------------------------------------------------------------
The Facts-
but especially true of the rent to own home buyer.
I. THE BENEFITS OF HOME OWNERSHIP
II. DOES RENT TO OWN WORK?
A question we often get asked, “Is this rent-to-own concept really what it is (a path to home ownership) or just a
way for someone to take my money?” The answer is “yes” and “yes”. Rent to own programs are an excellent
path to home ownership but beware--
FACT: THERE ARE SELLERS WHO TAKE ADVANTAGE OF DISTRESSED, UNINFORMED WANNNA-BE
HOME BUYERS. YOU DON'T HAVE TO BECOME A VICTIM.
III. IT'S ALL ABOUT PREPARATION
By doing your homework ahead of time you increase your odds of buying a rent to own home and avoiding
losing your money. You must first "size up" your potential.
IV. BEWARE OF THE EMOTIONAL EXPERIENCE
It is OK to fall in love with a home but save your emotions for later -after the house passes a pre-closing
inspection.
Granted you are excited to buy a home and you will be tempted to make an offer when the enticement is great.
Generally it is a better idea to "sit on it" for a night or two before making a decision. I have bought hundreds of
homes and can tell you first hand all about Buyers Remorse. If you absolutely have to have the home then by
all means give it a day or two and allow the emotions to cool. Trust me on this, as a seller of homes It is too
easy of me to take advantage of your excitement, and there are sellers out there who will do just that-take
advantage of you and your hard-earned money.
V. REPAIR YOUR CREDIT
The Single Most Important consideration for me and many Rent-to-Own home sellers is your credit
worthiness. Most home sellers understand if your credit is not perfect, but a rent-to-own home buyer with a
credit card is less of a risk. My studies show that 88% of rent-to-own home buyers who possess a secured
credit card get top priority. If you have credit issues one option is a guaranteed credit card. It may seem hard
to believe but my understanding is 94% of applicants are approved. Additionally, these secured credit cards
are a tried and proven method and very effective at restoring a higher credit rating. For landlords like me a
buyer with a credit card proves you are serious about your financial situation and as a prospective rent to own
home buyer will definitely move you to the front of the line.
VI. PATIENCE
Finally, be patient. Do your homework, and create a game plan. On the next page I have additional information
in your journey and it is called, "Rent-to-own Home Ownership is Easy when you know FICO".
At one time I was standing in your shoes, that is, on the outside looking in. I was cash poor and a disgruntled
tenant. I know first hand the frustrations of renting and not owning a home. Eventually, with steely
determination I overcame the odds and learned how to buy homes with no money down, with no credit and then
selling those homes for profits-many of which were sold as rent to own homes.
In the good ole US of A I believe home ownership is vital for many reasons, chief among them are;
- A home is for most Americans a sanctuary for peace of mind and well-being
- Home is the place to raise a family, the memories of which are the essence of life
- From a financial standpoint a home is the single most important investment in ones future.
For these reasons it causes me great pain when I see and hear of everyday, ordinary hard working folks get
taken advantage of and lose out. The dream of home ownership is alive and well and it is in this spirit, as the
French would call "Joie de vivre" or Joof that cause I offer to you valuable lessons I have learned along the way.
Prospective rent to own home buyers these days seem to ask me the same questions, "Can I Buy a rent to own
home with no credit or bad credit? How does rent to own homes work? Can I buy a rent to own home without a
down payment?"
These are all good questions and the correct answers really depend for the most part on you, the rent to own
home buyer. The secret to rent to own home ownership is there are no secrets. It is possible for anyone to buy
a rent to own home, regardless of credit or down payment. However, your odds of accomplishing this are
against you when you are competing in the marketplace against thousands of other rent to own home buyers,
many of whom come are prepared, come with a well-conceived game plan that includes having made vital steps
at correcting poor or bad credit scores.
Today, I teach real estate classes and one of the first things I tell my students is to have a clear understanding
that the path to home ownership is a journey first, a destination second. I have seen too many impatient
wanna-be rent to own homeowners lose everything because they didn't take the time to prepare, create a
game plan, then seize the opportunity.
Since you are here reading this you are probably serious about becoming a homeowner. If for now you are a
tenant I can talk with you as a typical landlord (or a rent to own home seller). And as a landlord there are many
things I look for in a prospective rent to own home buyer. If you can get just one tip from the story below then
you will have made significant progress on the path to becoming a homeowner. I wish you the very best.
Bud Spofford
Real Estate Investor and RTO Coach
---------------------------------------------------------------------------------------------------------------------------------
The Facts-
- Home prices have come down from their peaks by as much as 90% in some areas.
- Mortgage loan approvals are way down and it is a very difficult and lengthy process.
- Inventories of unsold homes are at all time highs which translates to unique opportunity buyer strategies
- Many home sellers are motivated by financial strains due to mortgage payments, taxes, insurance and
maintenance-this is a buyers edge and there are many techniques to employ. - At some point credit does become a vital component in the process.
but especially true of the rent to own home buyer.
I. THE BENEFITS OF HOME OWNERSHIP
- For most Americans a home is the single most important asset.
- Mortgage tax deductions
- Pride of ownership
II. DOES RENT TO OWN WORK?
A question we often get asked, “Is this rent-to-own concept really what it is (a path to home ownership) or just a
way for someone to take my money?” The answer is “yes” and “yes”. Rent to own programs are an excellent
path to home ownership but beware--
FACT: THERE ARE SELLERS WHO TAKE ADVANTAGE OF DISTRESSED, UNINFORMED WANNNA-BE
HOME BUYERS. YOU DON'T HAVE TO BECOME A VICTIM.
III. IT'S ALL ABOUT PREPARATION
By doing your homework ahead of time you increase your odds of buying a rent to own home and avoiding
losing your money. You must first "size up" your potential.
- Know your budget for house payments and home repairs
- Research the neighborhood
- Consider the local economy for job stability
- Be prepared with a down payment
- Take steps to improve and repair your credit
IV. BEWARE OF THE EMOTIONAL EXPERIENCE
It is OK to fall in love with a home but save your emotions for later -after the house passes a pre-closing
inspection.
Granted you are excited to buy a home and you will be tempted to make an offer when the enticement is great.
Generally it is a better idea to "sit on it" for a night or two before making a decision. I have bought hundreds of
homes and can tell you first hand all about Buyers Remorse. If you absolutely have to have the home then by
all means give it a day or two and allow the emotions to cool. Trust me on this, as a seller of homes It is too
easy of me to take advantage of your excitement, and there are sellers out there who will do just that-take
advantage of you and your hard-earned money.
V. REPAIR YOUR CREDIT
The Single Most Important consideration for me and many Rent-to-Own home sellers is your credit
worthiness. Most home sellers understand if your credit is not perfect, but a rent-to-own home buyer with a
credit card is less of a risk. My studies show that 88% of rent-to-own home buyers who possess a secured
credit card get top priority. If you have credit issues one option is a guaranteed credit card. It may seem hard
to believe but my understanding is 94% of applicants are approved. Additionally, these secured credit cards
are a tried and proven method and very effective at restoring a higher credit rating. For landlords like me a
buyer with a credit card proves you are serious about your financial situation and as a prospective rent to own
home buyer will definitely move you to the front of the line.
VI. PATIENCE
Finally, be patient. Do your homework, and create a game plan. On the next page I have additional information
in your journey and it is called, "Rent-to-own Home Ownership is Easy when you know FICO".
| ABOUT THE AUTHOR Bud Spofford began a career in real estate in 1976. Since then he has bought, sold, rehabbed and built more than 500 homes and mortgage notes. In 1996 he developed investment strategies unheard of at the time with short sales, tax lien investing, forbearance and loan modifications. With the advent of self-directed IRA's he brokered non-performing notes and charge-offs to investors by utilizing the aforementioned techniques with clients such as Chase Manhattan, National City Bank, Countrywide and many local lending institutions. Today he is a consultant to the real estate and rent to own home industries and a RTO coach. Ben teaches real estate investment strategies that include rent-to-own techniques. He lives with his wife Elizabeth. They have three adult children and a Shiatsu named Shady. For more information and private coaching contact Ben here. |
This is a first in a series of articles on how to safely buy a rent to own home. It doesn't matter if the home you want is a mansion,
bungalow, log cabin, mountain retreat or new construction, rent to own works for any home. However, it only works if you remember
that in real estate as in anything in life there are the scammers who will take advantage of the unaware and ill-informed.. Successful
real estate investors have a name for it, which is CYA, or cover your ass. The goal of the information herein is to better prepare you in
your journey to rent to own home ownership, plus to make you aware of the traps and pitfalls.
bungalow, log cabin, mountain retreat or new construction, rent to own works for any home. However, it only works if you remember
that in real estate as in anything in life there are the scammers who will take advantage of the unaware and ill-informed.. Successful
real estate investors have a name for it, which is CYA, or cover your ass. The goal of the information herein is to better prepare you in
your journey to rent to own home ownership, plus to make you aware of the traps and pitfalls.
| IMPORTANT! Please don't make this mistake. Depending on where you decide to buy there are some terms you must know. Rent to own can be called by many similar terms such as: rent with option, rent and own, rent option, rent to purchase, lease with option, lease to own, lease purchase, lease with option to buy, owner terms, owner will carry, seller finance, seller terms, for sale by owner with terms, owner will carry, seller finance, owner financing, purchase-money mortgage, land contract, contract for deed. For the most part in our discussions these terms essentially mean the same thing. However, it is vitally important to understand these terms can be legally defined and vary from state to state. IT IS IMPORTANT TO OBTAIN A LEGAL UNDERSTANDING OF THE LANGUAGE IN YOUR RENT TO OWN HOME CONTRACT BEFORE A DEAL IS SIGNED (more on future articles.) |