Rent to Own and FSBO
The peaks of the Rocky Mountains and the vast slopes of Aspen, the southern high desserts are all things that one thinks of when Colorado springs to mind. From Denver to Pueblo, Colorado living is popular and intriguing. With so many things to see and do, your new house in Colorado is bound to be a brand new lifestyle that you can embrace with gusto. Living in Colorado may be a dream of yours, as it is for many people. Skiing, snowboarding, fishing, hunting and even hiking are all outdoor activities which are enjoyed in the mountainous state.
A move to Colorado can be somewhat costly. Typically homes in Colorado cost a little more, but the atmosphere and the enjoyment that you get makes it well worth your time to explore homes, particularly those which are for sale by owner. Colorado boasts a wide range of homes that are for sale by owner in the state. Some are rent to own while others may be foreclosure homes in Colorado.
The recent economy has created problems for many prospective home buyers. Many were out of work for an extended period of time or they lost hours in the cutbacks that some companies had to make to stay afloat. They may have had some bills which were unpaid due to a lower income or may have defaulted on a home resulting in a foreclosure. This makes it very difficult to get a traditional home loan. There are many people out there today who are having problems obtaining a home loan without some special considerations. Fortunately today there are options. Non-traditional home buying methods do exist and they are legitimate.
FSBO homes or rent to own homes can give you what you need to get the Colorado house of your dreams. There are thousands of people today who have purchased their home as a rent to own or a for sale by owner. Colorado is just one of the many states in which you can buy your home without having perfect credit.
If your credit is slightly better, you’ll also be able to buy the home that you’re looking for, but do so in a more direct manner, using bank home loans to purchase a foreclosure home in Colorado.
If your dream is to own a home in the amazing state of Colorado, don’t let anything stand in your way. You’ll find the homes that you’re looking for and be able to choose from homes which are using non traditional loans methods by viewing the homes for sale at RealtyStore.com and RentToOwn.com
Most of us are very familiar with the term “rent to own”. Places such as Prime Time and Rent A Center have built an empire with rent to own merchandise, although the buyer normally ends up paying more than the merchandise is actually worth. While this may be great for those who have bad credit, most of us prefer to avoid going this route. Homes are no exception, especially if you are buying a home on a rent to own basis.
Even though rent to own may be good for a short period of time, it proves to be an expensive way for someone to buy something they intend to keep. Rent to own merchandise for example, may sound quite compelling at a few dollars a week. The agreement is normally for around 15 – 20 months, which is where the company makes their money. Although you may be paying just a few dollars a week, the total amount quickly adds up to nearly twice the cost of the item.
Along with paying rent, you’ll also have to pay applicable sales tax as well. Like merchandise, rent to own real estate has it’s disadvantages. Even though it can be great for those with not so great credit, you’ll normally end up paying back more than you would with a mortgage. You’ll still have to pay back your lender with a mortgage, although that amount won’t be nearly as high as it would if you decided to get a house on a rent to own basis.
In most cases, rent to own houses are put up on the market by the owner. This way, you’ll deal directly with the owner. It will start out as a traditional lease, then proceed to a rent to own basis if you decide you want to keep the home. You and the owner will then work out an arrangement, which will normally be quite a few years. Some owners are very flexible and will work with you just to get the price they want for their home, while others will charge you quite a bit more, in order to make a hefty profit.
Some home owners also offer owner will carry homes. This means that the home will be yours with a traditional down payment and the home owner will take the direct payment. The payment made directly to the home owner will help you to be able to make a mortgage payment and to buy a house with bad credit. When you do buy a home with bad credit you pay more, you may have to fix some things in the house but you’ll get the house that you want. Make sure when you do an owner will carry home or a rent to own home that you have the typical home inspections and that you file all the appropriate paperwork with your local courthouse in order to ensure that you have the rights you need over your own home. For example, rent to own homes in Florida are becoming very popular, but some are also owner will carry homes which require just a down payment. In both cases, you are getting something that you need, which will be a good service for you. If you tried to get an auto loan with bad credit, you’d have some problems and the same holds true for real estate. Getting a rent to own home may be the best way to buy your new house and then refinance when your credit improves.
If you have bad credit and can’t get approved for a mortgage, then rent to own would be your best option. Although some don’t like to do it due to the price, for many it’s a better alternative than an apartment. With rent to own houses you are paying money towards the home, instead of just paying rent. In some cases this is fine, although you should make sure to double check with the owner before you agree or commit to anything. This way, you’ll know how much you’ll be paying for the home – and for how long.
Credit problems plague people across the globe. These problems can lead to many other problems not limited to difficulty purchasing vehicles, getting jobs, opening checking accounts, and purchasing or renting a home. For those who are experiencing credit problems hope seems like a long lost commodity when it comes to the very American dream of owning a home of one’s own.
The good news is that there are some savvy investors around that are willing to take the risk on those who have had credit problems but are attempting to get their lives back in order. The bad news is that this good will often comes at a rather high price to the consumers. Getting into trouble with credit takes a while from which to recover. For many the process is long and filled with pitfalls and missteps along the way. For those that are living the nightmare of poor credit there are times in which the situation must seem hopeless.
For this reason investors that offer lease to own real estate to those with less than spectacular credit are often viewed as saviors on the one hand and villains on the other. However, they are taking a risk that others are unwilling to take on a person that has proven not to be the best credit risk in the business. In other words, many would find that they are justified by charging a higher price or interest rate than traditional lending institutions will charge. After all, it is their money that is on the line if the lessee decides to default on the contract. It is also their money that will be required to make any repairs that will be needed if eviction becomes a necessary conclusion.
For investors who are interested in ‘buy and hold’ investing this is one way of making that system work in their favor. Many times the ‘buyers’ will find another property after a couple of years and will have essentially rented the property for a specified amount of time. At other times they will seek alternative financing once they have been able to straighten out their credit situations. Either way there are many occasions when the property is returned to the investor and has turned a relatively decent profit while holding those who took some degree of ‘pride of ownership’ in the property during that time rather than ordinary renters who often have little or no regard for the condition of the landlord’s property.
There is more than one way that a lease to own deal can work. The most common however, is that there is a specified amount of time typically 2-5 years in which those that are leasing the property can live in the property with a portion of the monthly lease being applied towards a down payment for the property once they are able to get traditional financing. If a twenty percent down payment is achieved during that time the odds of them being approved for a loan are greatly improved. If they (being the lessees) combine this opportunity with serious efforts to improve their credit scores then there should be no problem achieving this.
As a real estate investor this situation is so much more attractive than renters for many reasons. First of all, the maintenance in these cases becomes the problem of the lessees rather than your problem, you have ‘renters’ that are hoping to have ownership of the property in time, and you can charge a little more each month for rent in order to cover the money being applied to the down payment on the property.