As a real estate investor, Richard Vesole, has successfully helped many prospective homebuyers navigate the Rent-To-Own program as a way to profit from home ownership. If you already own a home that you are looking to sell, you can certainly reach a wider buyers’ market when you consider renting the property, and giving the tenant the option to buy.
This is accomplished by including both a monthly rental payment and a payment component towards owning the home in terms of equity. But, RicharedVesole also knows that rent-to-own programs can be extremely beneficial for the new home buyer that may be in the process of improving their credit score and saving money for the home’s down payment.
Why You Should Rent to Own?
Over the years, rent-to-own home buying had gotten a negative reputation when bad actors take advantage of low income, prospective home buyers. That’s why it is crucial to work with someone that is established in the real estate industry, and to sign all the appropriate paperwork including the Rent-to-Own contract, rental payment agreement, and any promises concerning repairs or repayment if the prospective buyer has a change of mind.
Richard Vesole suggests, when partnering with a real estate investor or a private homeowner that is willing to work with the new home buyer, consider these benefits to how leasing a home is a good idea, until you can afford to purchase it.
Rent-to-own can improve low credit score
Many homeowners are ready to move into their own home before their credit rating has reached a good score. While your rent-to-own home contract won’t directly improve your credit, it gives you time to borrow money for an automobile, establish credit cards, and enter into other revolving accounts like at major home improvement stores.
Paying these creditors back on time every month can dramatically increase your credit rating in as little as 2 to 3 years. In the meantime, use your new lines of credit to fix any repairs the home may need!
It’s a chance to test the community and the home
Richard Vesole knows that some neighborhoods get a bad rap. But, it is very true, that every neighborhood has many good neighbors and quiet streets. This is your chance to take advantage of a home that is selling for an exceptional value due to the zip code’s market value.
Rent to own is one of the best ways to test drive a home and get to know the community without fully committing to a final purchase.
Your rent money becomes an investment
Rent money has always been viewed as having only immediate value. But, when a portion of your rental payments is set aside as equity in the home or towards the home’s down payment and/or closing costs, it becomes an investment. Also, while paying rent and waiting to purchase a home, interest rates or mortgage rates may go down.
If home supply and demand has skyrocketed, or other economic factors have increased the rate for borrowing, then Richard Vesole suggests waiting out the market by renting a home with the intent of buying at a later time.
