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Rent-to-Own Transactions Move into the Mainstream

By
Commercial Real Estate Agent with American Apartment Owners Association

Most investors want to sell properties outright.  They hope for a clean, quick transaction.  But for many, it's just not happening.  

Rent-to-own sales, or lease options, are moving into the mainstream, according to Robert Eisenstein with HomeRun Homes, an online classifieds website dedicated solely to rent to own transactions.  

The benefits of rent-to-own for tenant/buyers are obvious: the chance to scope out a neighborhood before buying, and getting into a house without having to apply for a bank loan.  Apportioning the lease option payment in each month's rent payment also forces buyers to stick to a budget.   

But the advantages for sellers are more subtle.  "For sellers, it's a matter of being stuck with a property they can't move in this sluggish market," explains Eisenstein.  Read more...

 

See more on Real Estate Financing.  

American Apartment Owners Association offers discounts on products and services for landlords related to your commercial housing investment, including rental forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.

Comments(1)

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Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Many current tenants can not qualify for purchase mortgages so unless the property owner/seller can get them qualified or hold the mortgage personally, these ownership/sales vehicles rarely go through.

Jun 27, 2010 10:01 AM