- Joined
- Jan 30, 2008
- Messages
- 137
Good afternoon,I am currently exploring the "Rent to Own" path. So basically this is a two part question.
1.) I think I understand the basic structure of the rent to own structure courtesy of homeownersoon.com.
Benefits of this Program:
[*]Your purchase price is guaranteed, even though you will not be exercising your option to purchase the property for another year or two. [*]You start to participate in equity appreciation right away. Your monthly payments and down payment are affordable. Easy Qualifying! Your credit bureau is not a factor in our decision. How The Program Works:
For our Rent to Own Program, a small down payment is required. The down payment can vary depending on your home selection. The down payment is credited to you as a deposit and will form part of your overall equity in the property.
Your monthly payments comprise of a Rent payment, as well as Monthly Option Credit payment (typically 20% of your rent payment). The Monthly Option Credits are saved over the lease term and are credited towardsnegotiable the purchase price. This example is based on a purchase price of $200,000. Please note that these numbers may vary depending on your city and Province.
Initial Down payment$5,000NegotiableMonthly Chq #1$1,360Rent, FixedMonthly Chq #2$340 Monthly Option Credits, negotiable Total monthly payment$1,700 Lease term2 years1-3 years negotiableAgreed to Purchase Price after lease period$231,080 Down payment saved over lease period$8,160$340 x 24 monthsTotal down payment paid $13,160$8,160 + $5,000 (initial down payment) Amount owing to purchase house after 2 year lease$217,920This amount could be financed with a first mortgage from bank or other lending company
2.) The thing I`m not entirely clear about is how would I combine this with a JV Partner? Plus how do you structure the legal side of things. I guess there`s the JV agreement (have one already), but what about the "Rent to Own" portion?
3.) Do people actually go for deals like this? It doesn`t seem like a very good deal paying rent for two years and owing an addtional $17+K at the end of the two years.
Lots of questions...... Thanks Dean
1.) I think I understand the basic structure of the rent to own structure courtesy of homeownersoon.com.
Benefits of this Program:
[*]Your purchase price is guaranteed, even though you will not be exercising your option to purchase the property for another year or two. [*]You start to participate in equity appreciation right away. Your monthly payments and down payment are affordable. Easy Qualifying! Your credit bureau is not a factor in our decision. How The Program Works:
For our Rent to Own Program, a small down payment is required. The down payment can vary depending on your home selection. The down payment is credited to you as a deposit and will form part of your overall equity in the property.
Your monthly payments comprise of a Rent payment, as well as Monthly Option Credit payment (typically 20% of your rent payment). The Monthly Option Credits are saved over the lease term and are credited towardsnegotiable the purchase price. This example is based on a purchase price of $200,000. Please note that these numbers may vary depending on your city and Province.
Initial Down payment$5,000NegotiableMonthly Chq #1$1,360Rent, FixedMonthly Chq #2$340 Monthly Option Credits, negotiable Total monthly payment$1,700 Lease term2 years1-3 years negotiableAgreed to Purchase Price after lease period$231,080 Down payment saved over lease period$8,160$340 x 24 monthsTotal down payment paid $13,160$8,160 + $5,000 (initial down payment) Amount owing to purchase house after 2 year lease$217,920This amount could be financed with a first mortgage from bank or other lending company
2.) The thing I`m not entirely clear about is how would I combine this with a JV Partner? Plus how do you structure the legal side of things. I guess there`s the JV agreement (have one already), but what about the "Rent to Own" portion?
3.) Do people actually go for deals like this? It doesn`t seem like a very good deal paying rent for two years and owing an addtional $17+K at the end of the two years.
Lots of questions...... Thanks Dean