How Does Rent to Own Work

I find myself answering this question numerous times per day so I figured it’s way over due that I post an explanation. If you prefer to listen to the audio a few times simply dial 855.66PREFO (77336), X 824. There is a video post before this one on the blog as well.

Approximately 82% of the market cannot qualify TODAY for financing and typically would need to improve their credit to do so. Alternatively, other buyers with good credit are looking for a way to buy now while they save more instead of renting while they save.

We offer lease purchase (rent to own) properties only – no straight rent. All properties will require 3%-10% down and that is credited against your purchase price. You then pay a monthly lease payment. Some homes feature a small amount of that monthly also crediting the price and some do not. Some homes also feature our Down Payment Assistance Program. That works like this: on any given month you can put an extra payment toward the purchase price of $100-$500 ($100 increments) and receive a credit against the purchase price of 50% more. For example, if you have a month when you feel you can put an additional $200 down for your down payment, you receive $300 credit. The maximum in one month is $500 down so $750 credit. You can always put more down to improve your down payment for future financing, but the free equity you’ll get with the Down Payment Assistance Program is capped at $500.

Sometime between 6 months and 24 months they can typically get you in great shape for your own loan. The time frame on our lease purchase properties ranges from 24 months to 10 years so you’re never rushed and we’ll help you purchase on your own eventually.

If you have not seen one of our properties yet, your next step would be to go ahead and schedule a viewing. Some are on lock boxes and you just need to get the instructions from us and others require private or group viewing with an owner.

Take the Rent To Own Step 1 Now.

Office: 855.66 PREFO (77336)

Fax: [phone]

Pre Holdings, LLC, Pre Property Solutions and affiliated or subsidiary companies (“Pre Holdings”) are not real estate brokers or agents. Pre Holdings is a real estate investment company. All properties are either owned by Pre Holdings or the company has a purchase contract and/or option with the owner of the property, which Pre Holdings may assign to third parties. Pre Holdings is not a real estate brokerage and does not provide realtor services to the public, or to any of the parties to which it has contractual relationships.

We can help you find a great deal on investment property or a personal residence. Let us be your first choice when looking for properties, contractors, attorneys, agents, hard money, financing, or any other real estate need. We know the business and can offer immediate help.

[vievolottie]

I payed for my house with the owner gave him $$$ a month for ## years. Simple as that. We shook on it looked eachother in the eye. Thats how bussiness should be done. Glad i never had to do this craaap.

[renttoownhomes]

Thanks for this video. A lot of people are confused about rent to own homes, thanks for explaining both the good and the bad

[kwalitynana]

So I have been told ~ Do not sign a contract UNTIL you get Pre-Qualified for the loan amount for OR else you can lose everything at the end of the contract if you can not get approved. So you loose everything you have invested in the home, improvements repairs *which you the leaser) is responsible for once contract is signed...So NEVER sign a contract Without being Pre-Approved for a Home Loan 1st so you know how much you qualify for...Have someone who knows how it works with you b4 signing anything.

[brittneyreigns]

If you CAN NOT AFFORD OR QUALIFY for a home now you will not be able to afford it then! I most certainly follow Dave Ramsey teachings but i also use common sense... so if you can not get a traditional home mortgage you are either in debt (that you need to pay off) or your income is not stable... youneed to get your affairs in order first! There is nothing wrong with wanting a house BUT you will be broke in a house trying to afford it! And if you have 3-20% down in a “rental property “ use that money to PAY OFF YOUR DEBTS WHICH IS WHY YOU COULD NOT GET A MORTGAGE! You have to walk before you can run

[robthemillennialrenter]

Great job taking an easily confusing topic and breaking it down. Thanks Chris

[bobdole]

do not rent to own. My coworker went that route and the owner died. Owner’s child is reclaiming the house and my coworker is going through court to get her money back. I’d just rent normally, save for a down payment and get your own house when you’re able to.

[hattieharper]

I really enjoyed learning about rent to own homes this is a great video thank you for sharing

[meganmoore]

I’m still confused😂😭😭😭 I feel so stupid! But I want to rent to own a home

[maddymuche]

But does the rent your laying go toward the down payment?

[EasternExplorer]

Rent to own is great. I paid 300 dollars a month for 5 years and now I own it. Didn't even have to sign a contract it was just a verbal agreement with me and the land lord. I paid up and he signed it over. What more could you ask for.

[iLoveMissB]

Once the lease to buy contract is in place does the "buyer" become responsible for all maintenance and repairs on the house even though they haven't actually bought the property yet?

[nanaernesto]

Hi is great info thank, i looking to get info about this and there is something what can see yet, when I made a rent to own, let say I made a lease to the tenant for 2 years, at the end of that time I will sell them the property and that’s all???, they will looking for a lender who going to pay to my lender and my lender going to pay me the difference??? So if I buy a house 100k I put 20k if I rent to own and sell that in 110k my lender is going to give me 30k?? So rent to own is like sell property without realtor, and helping people to own a property if they need a house but they don’t have a credit scores or the down ??? Or I will keep the property for 30years and tenant will pay me rent and extra money for the value of the house ?

[nGUNNARp]

the dislike button being gone is so bad...you can't know if you're watching a video with good info or bad info without already having some knowledge on the subject now.

[jacobbatuchi]

Who pays the tax, property insurance, etc expenses for the duration of the years before the owner gets paid off ? And can you put the price as adjustable for the appraised value of the time of selling in case the property value doubles or tripple

[indiejones]

I don't understand though. If you have 3-10 percent down, why not just use that money to pay down debt and better your credit score and get into a mortgage instead of an open ended agreement ?

[edwinabreu]

Basically almost same page as a car lease but with more options

[SheriffofYouTube]

very well spoken.. you will have success with that confidence

[haolee]

have you ever had the renter's wanting to renegotiate the sell price a year after renting? and how do you handle it?

[aznluvr]

Man, what a scam. I own properties and I thought about doing this until I realized how predatory it was, I couldn't sleep at night if I did this to people.

[ms-lkbw]

what profit is it to the seller?
if at the end of 24 months, property prices go up ( which generally they do unless there is some exception ), seller is always at loss