The real estate market continues to make headlines as foreclosures increase and property values decline in many parts of the country. Here at home, real estate professionals are seeing a trend that may be a win win for both buyers and sellers.
Many families struggling to get mortgages these days are finding comfort in a growing trend: lease-options.
This is a contract that allows renters to lease the property and at the end of their lease, they have the option to buy the home. Hopeful buyers with poor credit are finding the rent-to-own option creates an opportunity to repair their credit
Advantages for the buyer/tenant:
Usually you can buy the home at any time during the contract.
You can see if home ownership is right for you by testing it out.
You have a chance to clean up your credit and build equity.
Advantages for the seller/landlord:
Immediate cash flow from the tenant.
If the tenant/buyer doesn't buy your property, you keep the upfront fee.
Since you own the home, you retain tax-shelter benefits while you have tenants in the home
As always, it's always a good idea when purchasing real estate to contact experts to assist you through the process to ensure that you understand the contract and ultimately complete a successful transaction.