Bill Pinnell: Bill Pinnell here to discuss who would benefit from buying their house using a rent-to-own agreement. Well, if you’re in your twenties and you’re looking to get into some homeownership and you want to start building up equity, but you don’t have enough for the down payment, this would be ideal for you. In addition, people that don’t have the traditional 10% to 20% for the down payment, it would be a good idea for you because typically with rent-to-own, you’re only going to need about 3% to 5% of the purchase price to get in the home of your choice in the neighborhood that you want. If you’ve been turned down for a mortgage and you need a little more time to work on your credit situation and you’re working with the lender to improve it, this would be ideal so that at the end of the contract, the lease, you would be able to qualify for your loan and purchase the property.
In addition, rent-to-own helps develop your habit of saving money because your lease option money, the non-refundable money that you put down on the property, will be going towards the purchase price, as well as generally part of the rent amount. You’ll be getting a rent credit towards the purchase price as well. Or maybe you’re moving to a new area and you want to just check it out, give it a test drive. We’re from Detroit, so we do test drives. So, you test drive the neighborhood and you stay there for a while. Well, having a property that you want to own, that would be a great way to do it without going through and applying for the mortgage and putting down the substantial amount of money. You can test drive the area and then decide if you like it.
As a matter of fact, my wife and I are looking down the road to move to possibly Orlando or the Phoenix area, but we’re going to do the rent-to-own when we go there because we’re not sure if we will definitely like that particular area year-round. Maybe we’re going to have to split our time between places, but we’re going to try that using rent-to-own because it will be a lot cheaper for us than going through getting a mortgage and setting up selling our current house and going through all that process.
Hey, if you want help to set up your own rent-to-own agreement or a lease purchase with a buyer, give me a call. I’ll be glad to help you out. You can get a free 15-minute consultation if you visit my website, wildbillpinnell.com. And remember, I answer my own phone. So give me a call: (734) 245-9654. Have a great day, bye.