The most exciting step has arrived. Starting your search for rent to own homes!
Actually, this is a step most people get stuck on during their rent to own homes search.
Some of the common sticking points are:
- Unable to find “rent to own” home Listings
- Unable to find GENUINE listings
- Not sure how to approach sellers who do not market as “rent to own”
Unable To Find Rent to Own Listings
We receive several emails a week from people throughout the Country who are discouraged because they can’t find a home that is on the market listed as a “rent to own.” Usually the only homes that do have a mention within their ad about possible “rent to own” are those being offered by a Real Estate Investor or a rent to own company.
They can be great deals, especially if you end up working with a local rent to own company that is able to guide you through the whole process.
But, you can also find plenty of rent to own opportunities with homes that are listed for rent or for sale, especially in this buyer’s market!
Unable to Find Genuine Rent to Own Listings
After spending some time searching through online classifieds or even search engines you will see that many “rent to own” listings are fake and lead to paid membership websites.
The free rent to own listings we have setup sometimes contain these “scam” listings.
Why is that?
Our listings are made up searching several online classified websites throughout the Country. We have set up parameters to search for potential “rent to own” and “lease option” homes. But we have no way of knowing if the listings are genuine or not. But, we are currently reviewing as many listings as possible and we are removing classified websites that have excessive “scam” listings.
Some Example Questions to Ask Sellers offering Rent to Own Listings
I will get back to explaining how I personally approach contacting sellers with homes that are not offered as “rent to own homes” next.
First, Here are some example questions to ask when you are calling on listings that ARE offered rent to own(this is not an all-inclusive list, just some examples to get you started):
- What is the Listed Sales Price?
- What Amount are You Asking in Rent per Month?
- How Much in Rent Credits per Month?
- How Long of an Option Period are You Willing to Give?
- Do You Own the Home? (Yes)Great, Why are You Trying to Sell?
Those are just a few questions that are necessary for you to start analyzing the “numbers” to see if the home is a potential candidate for YOU based on your situation and your conversation with your mortgage broker. Hopefully you DID contact a mortgage broker by this point. That was the previous step, step #3.
Calling For Sale and For Rent Listings
What is the best way to approach a seller about letting you rent to own their house?
Well, there are several ways you could go about this, but I basically use the following approach based on some things I have observed after speaking to several homeowners/sellers over the years. These are some things I have noticed:
- Most Homeowners Do Not Understand How “Rent to Own” Works
- Several Sellers Think “Rent to Own” is “Seller Financing”
- Sellers Who Think You are Asking for “Seller Financing” Will Say “NO” or ask for a Huge Amount of Money Upfront.
- If You Can Provide Them with a Simple Explanation, Many Will Consider the Offer
My Example Approach
Me- “Hi, I was calling about the home you have for rent/sale”
Them- “Yes, it’s still available”
Me- “Great, would you consider a rent to own on the house?”
Them- “Do you mean seller finance?, I can’t do that I have a mortgage…”
Me- “Oh no sir/mam, let me try to explain, a rent to own is like a traditional rental, but with the addition of an “option agreement.” The option agreement states the amount you agree to sell the house for and also the timeframe you will give me to qualify for a mortgage and purchase the place. Now I’m not required to buy the house, but I am working with a mortgage company and I should be able to qualify within (timeframe you discussed).”
Them- “What happens if you can’t qualify for the mortgage in the time we agree to? “
Me- “If I haven’t purchased by then, you no longer have to sell me the house.
*That’s a basic example of how I would approach a homeowner about using a rent to own. It will be easier to follow after I make the video with a few example calls to real homeowners.
Obviously, the information contained within this website is ONLY my personal opinion. Seek legal advice!!