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Renting to Own or Rent-to-Own?

By
Real Estate Agent

The Wall St. Journal published an article today about Real Estate Investors looking for a way to bank on the recovering housing market by offering a 'Rent-to-Own' solution for buyers with blemished credit.

 

Similar programs were highly popular in the 1990's and went out of fashing when 'lending to anyone' became popular in the early 2000's.  Well, it appears that they are making a splash, once again; only this time, they are new and improved.

The earlier Rent-to-Own Programs were typically run by smaller operators.  Today's programs are backed by Wall Street investors.  The company mentioend in the article published today, is called Home Partners of America and one of the founders is a former Goldman Sachs executive.  The company also received a $500 million equity investment last year.  Their programs are highly organized and set up for success.  As for the question of sustainable business model, they founders feel confident, they are here to stay.

You can read more about the details here.

Posted by

Christina Sanchez Hood

Keller Williams Palo Alto

SVHoods.com

o. 650-382-2880

e. christina@svhoods.com

BRE 01820455

Helping workers of Silicon Valley find Homes that Work For Them!

 

 

 

Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Suprised this article got published now as it has been into practice for awhile.

Try this tool:

http://www.realtor.com/mortgage/tools/rent-or-buy-calculator/

Enjoy,

Sam Shueh

Jul 29, 2015 03:18 PM