Rent to Own advice Needed Please. - Posted by Bill G.

Posted by Tim Fierro (Tacoma, WA) on July 11, 2002 at 11:42:26:

I don’t know your area, but I would make sure that the buyers in your area of housing would have $20k sitting idle waiting on a house purchase. With the interest rates as low as they are, many loan programs with 3% or 5% down, you are asking for over 10% down. You don’t say what type of interest rate you want to charge either, and that may come into play.

Is it feasible? Sure, if the right buyer comes along. I have to wonder that if someone had $20k sitting in the bank to buy a house, they probably have some idea of how to handle their money and are looking to get in with a low interest rate and/or low down.

It’s your area and your neighborhood, so you will know if it will work or not based on the response to the advertising. If folks are not calling, something is wrong. If people keep saying they only have $10k to put down, then you may not be able to get that $20k you want. You can only get what the buyers are willing to spend, or should I say, are able to spend.

Rent to Own advice Needed Please. - Posted by Bill G.

Posted by Bill G. on July 11, 2002 at 24:44:04:

Hello
I have a scenario I would like to you critique if you would. I am selling the house and had it in paper for 179k with 26K down, 1600 month, (was gunna do a trust, etc.) slow response (comps 174k). So I thought I would do a rent to own,Here is the my situation.
Owe: 130k 1st and 2nd of 25k, making a monthly note of $1530. Would like 20k down.
How should I structure this? I can hold onto the note pretty much as long as I need. Does 20k down, 179k sales price and 1600 month sound feasible, there are many ways to structure it I believe, I just need some support as to what are the BEST ways to go? Should I make money on the back end and how?

Thank you in advance for your help.
Bill