Top 4 Mistakes When Buying A Rent-to-own Home
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The article "Top 4 Mistakes When Buying A Rent-To-Own Home" talks about real estate, it was written by Trey Patrick.
So you have bad credit? Or no credit but you want to get into your own
home? Rent To Own or Laese Purchase Homes can be the ticket to
getting that second chance to live the American Dream.
But don't get
so wrapepd up in the dream you don't see the reality.I had bought ten condos in less than six months and knew I was on to
something.
I lease purchased the homes to the tenants and found a
win-win for all three parties.Then I began to hear of the scams which were going on trhough the investor
world.
Unknown tenants were renitng homes from investors but they were
making some monstrous mistakes. Let's look at the top 4 that are made every day and how you can avoid doing the same.Mistake #1**Rent Amount**One of the top mistakes made is when the tenant gets into a home
because they can afford the payment or rent every month. And they
never take the time to figure out- can I afford the payment when I get
reday to buy the house.Don't get so locked on the easy payment and forget your goal.
You want
to own that home one day.
Go to one of the free calcultaors online. A graet one is at Bankrate.Com.
Figure out the payment by calculating the
cost and the interest rate. Now ask yourself, can I afford to buy that
house one day or am I just kidding myself and just renting.Mistake #2**Price**Are you overpaying just because you want your own home?
Don't be
fooled and blind to the thought that you may be overpaying for a home just
because you want your own home? Take the time to research the
neihgborhood.
Pull flyers for codnos that are for sale.
Does it come
close to your cost?
Call a real estate agent up.
Ask what the houses
in that neighborhood sleling for. Don't pay too much in a year for the
luxury of living in your own home yesterday.
You'll rerget it.Mistake #3**Maintenance**So now you are an owner-in-training? You are taking care of the
maintenance.
But when is it too much?
What does your contract read?
How much maintenance are you liable for? If the roof goes out, do you
have to come up with the $5000? That being said, it is true that many investors rent to own or lease purchase
because they don't want to be landlords.
Midnight calls to unclog toilets.
No thank you.
Bottom line- Make sure your contract has a limit to the
maintenance that you are liable for.Mistake #4Let's call it ** term **.Let's define it:The length of time that you can buy the huose that you are renting or leasing.What is the mistake and why does it matter? There are investors/landlords who will place you in a home and know
that in a year's time there is no way for you to be able to get the loan.You see, many times one year is not going to be enough time to *cure**
or **repair** your credit.It's just not enough time.Don't get into a position that you won't be able to buy the house.
You will lose your option money.You have a contract that ends in one year.
You can now do nothing but
move.The landlord can ask you to leave and you have to leave. The house is
then rented again for a higher rent and higher purchase cost and you're
searching for the next home.How to aovid this:Before getting into a contract on the home, get with a mortgage broker in
your town. You can find one in the paper who will be advertising to help
pesrons with bad credit.Let him/her run your credit and make sure you tell them that you want
their honest opinion.
Can you get a loan in a year's time and what do
you need to do for that to happen.
What will be the rate that you are
looking at?Don't let them just tell you what they guess you want to hear.
"Give it to
me straight, Doc."Let them help you with a game plan on how to improve your credit for
the future.Let's sum up the mistakes:Avoid the mistakes dealing with price, rent
amount, maintenance, and the term of the contract.
I hope you've learend something. I know now that
you'll go into your next house with more info.Trey Patirck is an investor and landlord in Athens, GA.
He is also the author of an ebook showing the general public how to buy their own rent to own home with really little money and no credit cehck. http://www.Buyhomewithnocreditcheck.Com
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Top 4 Mistakes When Buying A Rent-To-Own Home
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