subject: Are Rent To Own Schemes Good If You Have To Sell A House In Chicago? [print this page] If I had to sell my house, I will certainly opt for rent to own deals in the market. Here are some of the reasons rent-to-own can be beneficial for you as a home seller:
1. Higher Purchase Price Rent to own sales typically command a price premium over traditional sales. The buyer is paying extra for the flexibility he receives by not having to do an outright purchase immediately.
2. Higher Rent You may be able to charge more for monthly rent in a rent to own than you would for just a straight rental.
3. Cash Flow If your monthly payments are less than the monthly rent, the difference goes in your pocket.
4. Option Fee This upfront fee paid to you by your buyer is what secures the purchase price down the road. If the buyer closes on the home, it would be applied towards the purchase price. If the buyer elects to not purchase the home, the option fee is forfeited and still remains yours. Either way you win.
5. Eliminates the Burden of the Mortgage Payment If you have already moved on to your next home and your old house is sitting empty while you try to sell it, then you are saddled with TWO mortgage payments. Placing a rent to own buyer that pays that extra mortgage can take away your pain.
6. Getting Your Home Sold faster In slow selling markets offering your home as a rent to own can help you get a buyer into the house much faster.
Analysts say that the best part of the Rent To Own process is finding a tenant that will take care of your home for the long-term. There is nothing like having a tenant in your rental home or investment property, but in all reality, most of the time a tenant does not take care of the property as best they should. At the same time, a Rent To Own tenant buyer is taking care of your home like it was their own home.
You can make money too through rent to own option:
1.Down Payment. You are receiving a larger than normal down payment (typically 3% to 5% of the purchase price of the home).
2.The Rent. You continue to collect rent just like you would from a normal tenant.
3.Pay Down Your Mortgage. Thats right, youre paying down your mortgage the entire time your tenant buyer is repairing their credit; so youre basically earning equity in every months payment which adds up.
4.The Sale: Work with the buyer to negotiate a fair and reasonable estimated price. If you are selling the Rent To Own home yourself, you just avoided paying a realtor to sell it for you (saving up to 6% of the purchase price. You also avoid short-term capital gains if you are use the old fix and flip strategy which is always a successful approach to Rent To Own homes. Do not take advantage of a buyer trying to buy your home in a Rent To Own transaction!
The best part to sell house Chicago on rent to own basis is that I can sleep at night, every night. So why not hurry, get going. If I had to sell my house in Chicago then I surely would do it not by traditional means but by rent to own scheme.
Log on to SellHouseOnTerms.com for more details.
by: Brendon B.
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