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Archive for the ‘Rent to Own Condos’ Category
Sunday, September 27th, 2009
The Rent-to-Own Program is just another great program to take advantage of in today’s market. The Rent-to-Own program means that there is a lease combined with an option to purchase the condo, within a specified time period, for an agreed-upon price. The Rent-to-Own program is a great program for two types of situations. The first being that you are unable to come up with a large enough down payment and the second being that you need time to repair your credit but you want to secure this property.
This program is a good idea for the people who just can’t come up with a large enough down payment. The way that the Rent-to-Own program works is that you would pay the market value rent each month for the property. On top of the agreed upon rent, you would also pay an additional amount of money that will go in a reserve and will be used toward your future down payment at the end of the lease. You will have to come up with more money every month, but this way you don’t lose out on the property and you are making sure that you are saving money.
This program is also fantastic for people who need that additional time for credit repair. The buyers and the sellers agree on the lease period and so the buyer just needs to confirm that the agreed upon time is lengthy enough for them to repair their credit. There are many programs that one can try, including a program called NACA, to learn more about repairing your credit.
The only downside for a buyer in a Rent-to-Own program, is that if that the buyer decides for whatever reason not to purchase at the end of the lease, then their additional money that was put into the reserve and also your 1%-5% down payment will probably be forfeited depending on the terms of the contract. This program is meant to have the buyer purchase at the end and that is why it is designed the way that it is.
Tags: real estate, Real estate condos, Rent to Own Condos, Rent-to-own program
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Tuesday, July 21st, 2009
There are a couple of major reasons why someone would want to rent to own a Condo. First, it is an excellent opportunity for cash strapped home buyers to accumulate enough down-payment to purchase a home. Secondly, due to recent economic conditions it is an opportunity to repair some credit issues that will eventually put you in a place to buy a home or condo. There are some areas that need to be considered before you make the leap to homeownership.
What is rent to own and what kind of agreements are needed? Rent to own is in its simplest form is renting a home or condo with the opportunity to purchase at a later date. The lease to own or lease-option agreement is both a lease that allows you to occupy the home and an option that allows you to purchase the home in the future at an agreed upon price. The typical agreement may offer a part of the rent to go toward down-payment or closing costs. For example, $200 a month may be applied toward the down-payment where at the end of the year $2400 has been accumulated towards the purchase.
One other area to be aware of when you are interested in a rent to own a condo is the lease-option is not an obligation to buy. It is an opportunity to purchase with the advantage of a known purchase price and a potential rent credit toward down-payment or closing costs. In most cases if you choose not to purchase the credited rent is usually forfeited to the owner which is a form of compensation to the owner to offer the option.  Remember while you are living in the property the owner cannot sell the property to someone else and remove you from the property so keeping a portion of the credited rent is understandable.
One last area to be aware of when considering a rent to own option is who is responsible for the taxes and insurance. There are also association fees when you rent to own a condo and who is responsible for them while you are leasing. Obviously the owner is responsible for these costs since he or she owns the property and enjoys any tax advantages that come with home ownership. Of course, once you have purchased the condo or home at the end of the lease option term, you will be responsible for the taxes, insurance, and association fees but then the property is yours and the satisfaction of being a home owner.
Tags: Chicago Condos, Chicago condos for sale, condos in Chicago, Real Estate Companies in Chicago, Rent to Own Condos
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Monday, July 6th, 2009
If you really want to own a condo but do not have the cash, have you checked out rent to own condos? Rent to own condos allow you to get into ownership much faster than the standard way. If you’re looking to buy a condominium and you’ve never gone through the process of owning real estate, the best thing is to understand the process. Let’s break it down.
You find a condo in your area that you want to buy. It costs $200,000 and you don’t have it. How do you buy it? Normally people purchase property by paying for a small percentage of the real estate with cash and they go to the bank to finance the rest. Typically if you’re going to live in the condo, the bank would probably finance 95% of the transaction allowing you to buy the condo with 5% down or $10,000. What if you don’t have the $10,000? The next step is look for a rent to own program.
Rent to own condos allow you to live in the condominium before you purchase it. The way it works is you negotiate the price you’re willing to pay, the rent your willing to pay, the length of time that you’ll be renting until you have to exercise your option to buy and how much of the rent will go towards the down payment. These are the four things that you need to get done first. Once that is handled, the attorneys will finalize the real estate contract and you’re all set. You move into the condominium and start paying rent. Each month you pay rent, a certain portion of that will go toward the down payment. By the end of twelve months you should start to see a substantial accumulation. Then the moment of truth will come where you’ll have to make a decision if you want to buy your condominium. The nice thing about it at this time is you’ll have lived there for more than a year and you’ll really know the scoop on the condo.
Condos that go through the rent to own program allow many buyers to buy. The programs allow people even with bad credit to buy because it gives them time to clean things up as they’re going through the rent to own programs. Call you Realtor today and ask about the condos that are available through the rent to own condo program.
Tags: Condominium, condos, Rent to own Chicago condos, Rent to Own Condos
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Sunday, July 5th, 2009
Rent to own condos have become extremely popular because financing has gotten tougher over the last few years. Rent to own condo programs have allowed people to get into their condo easier by applying a portion the rent they pay monthly toward the down payment. The rent to own situation starts with finding a condominium that will fit under the program. This has become popular as of late, so you shouldn’t have too many problems finding the rent to own condo.
Start with a multiple listing search. Usually you will be able to unveil a few hundred. It sounds like a lot, but when you break down all the areas in your metropolitan area, it may only uncover two or three in a particular neighborhood that you will want to own in. If you can’t find what you are looking for, call a Real estate company that specializes in rent to own programs or condos. Not only will they help you in breaking down the MLS search for these “rent to own†candidates, but most likely, they’ll have a number on condos that are not in the MLS that fit the rent to own criteria.
Rent to own condos are great for the young couple just starting out in life that want to get into home ownership but do not have the down payment necessary to own a condo. The rent to own program allows you to rent the condominium for a certain amount of time while you decide if you want to buy the condo or not somewhere down the road. You are normally not contractually bounded to move forward on the purchase on the condominium. The program is set up so you have the right to live in the contract while you are formally renting, eventually making a decision if you want to buy somewhere down the road. This is great because you’ll really have a chance to get to know the unit, your neighbors, the complex and the neighborhood before you go through all the trouble of owning and then finding out later that you really do not like the condo at all.
Rent to own condos can be great for a number of reasons but the idea of being able to try something out before you move forward on it is huge. Most likely you’ll find out things you never could have about owning the condo until you actually do live in the unit. Rent to own condo programs are excellent!
Tags: condo, condos, Rent to Own, Rent to Own Condos, Rent to Own Programs, rental condos
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Sunday, June 21st, 2009
Rent to own condos can be the way to go for many of the renters today looking to own but may not have enough for the down payment on a condominium. The rent to own programs can place part of the rent payment each month toward a down payment and over a period of time, the renter may find themselves with the money needed to go forward.
Here’s how a portion of the rent to own program works. First you have to find a seller of a condo to agree to letting you rent the condo instead of out right buying it today. This is very achievable because many condo sellers cannot sell their condo. At lease you will be paying rent for the condo and there will be a chance that at the end of the agreement you’ll end up buying the condo.Â
Once you’ve found the seller to go along with doing a rent to own condo purchase, you’ll now have to negotiate four things; how much you’re willing to pay rent per month, how much you’ll be willing to pay for the condo when the time comes to exercise the option, how long the contract will be for and lastly, how much of the rent each month will go toward the down payment of the condominium.
Normally these “rent to own condos†will take about twelve months on average to complete. This gives the buyer of the condo to save enough of money for the purchase of the condominium and clear any credit issues he or she may have on the financing side. All of this is negotiable. It’s best to talk to a condo attorney to discuss all the possibilities, but just for argument sake, think in terms of about twelve months.
The great thing about a rent to own condo is that it allows you to live in the condominium and the condo complex for a certain amount of time before committing to purchase. If after one year, you do not the complex, you’re not locked in to selling the condo. You can simply walk away. If you really like things, you’ve already built up a bit of a nest egg with having a part of your rent applied to the down payment and price of the condominium
.
There are lots of things to consider when moving forward with a rent to own condominium, but you’ll find that it’s a great way to get into owning a condo if you do not have the funds today.
Tags: condo, condo rent to own programs, condos to own, find a rent to own condo, Rent to Own Condos
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Monday, June 15th, 2009
Rent to own a condo or home has received a lot of press lately due to the downturn in the real estate market the last couple of years but is still a very viable option for many home or condo buyers. There are two main reasons why the rent to own program is attractive to many buyers in today’s economy.
What is rent to own and what kind of agreements are needed? Rent to own is in its simplest form is renting a home or condo with the opportunity to purchase at a later date. The lease to own or lease-option agreement is both a lease that allows you to occupy the home and an option that allows you to purchase the home in the future at an agreed upon price. The typical agreement may offer a part of the rent to go toward down-payment or closing costs. For example, $200 a month may be applied toward the down-payment where at the end of the year $2400 has been accumulated towards the purchase.
Lack of a down payment is common today with the credit markets shrinking and the ability to obtain credit getting harder by the day. Home lenders no longer have the financial products available to write loans they way they did just a few short years ago. Cash strapped first time home buyers with good credit are finding it much too difficult to find loan products with little or no down payment. The rent to own a condo or home programs offered by many different real estate companies and other organizations fills the gap between the inability to buy now and waiting for possibly years before a down payment can be saved. Rent to own programs can be structured several different ways offering condo or home buyers a variety of options to purchase sooner than later. One of the most popular today is for a portion of the rent to go toward closing costs or down payment. This makes it easier for the potential buyer to save the much needed down payment because it is already a part of their monthly payment. The excess in rent goes toward an escrow account that is not tapped until the buyer is ready to purchase. In other words, a forced savings account where the buyer or seller do not have access to the money until an agreement to purchase is executed.
Tags: Chicago Condo, Chicago Condos, Chicago condos for rent, Chicago condos for sale, Chicago Real Estate, condos in Chicago, Rent to Own Condos
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Monday, May 25th, 2009
How do I get involved in “rent-to-own†Chicago condo programs? Rent to own condos are available more than ever right now because the sellers have been having a hard time selling for more than three years. Imagine sitting with your condo for three years and not being able to sell it. If the condo is vacant and the seller has moved out of the city, the seller most likely would be in a position of having two mortgages. This is horrible for so many sellers of condos because they’re not able to afford the two mortgages. Many of them are now going into foreclosure or selling the condo short.
What’s the next alternative? Rent to own condos help both sides; the seller and the buyer of the condominium. The seller gets a renter immediately. They have some sort of rent coming in helping pay that second mortgage. The second good thing for the seller is the chance that the buyer will close on the unit six to twenty four months down the road.
Rent to own condos are great for the buyer as well. The great thing about a rent to own condo program is the ability to softly get into ownership. The first step is picking your Chicago condo. This step is so critical. You want to make sure you’re in an area that you like and that you can live in for quite some time. After you’ve zeroed in on an area, the next step is negotiation. There are primarily four things that will be negotiated; price of the unit, rent on the unit per month, how long will the rent to own program go for and lastly, how much of the rent will go toward the down payment.
Now your in your Chicago rent to own condo. You’re paying $1,200 a month and you’re going to live there for twelve months before you have to make the decision to exercise your option of buying the condominium. The great thing about this is having the chance to evaluate the premises before making a commitment like buying a condominium. You’ll be able to sort of test drive the condo before actually buying it. You can get to know your neighbors, you’ll be able to really get to know the premises to see if there are any leaks in the roof, etc.Â
Rent to own condos can be great for all parties involved and there are hundreds of them in the market place today.
Tags: Chicago Condos, Chicago rent to own, condos, condos for rent, rent a condo, Rent to own Chicago condos, Rent to Own Condos
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Monday, March 30th, 2009
The real estate market is suffering along with the rest of the country during this recession. Many sellers are desperate to unload their property in any way that they can. If you are a buyer there are a number of fantastic opportunities out there right now that you can take advantage of. If your credit is not in top shape, or if you are like the majority of Americans right now that are having a hard time securing financing, you may be surprised to learn that you can rent a condo.
A lot of sellers are looking into whatever options that they have for property that they are attempting to sell. This is especially true for sellers that are on a time line while they are waiting for new construction to be completed or for other property owners to vacate so that they can move in. A large number of these sellers have found that renting out their property is a great solution. It is also a smart way for them to protect their investment since housing prices have dropped drastically within the past year. It makes much more financial sense to hold on to a property until the market sees some improvement before settling for a lower sale price.
There are also a lot of other great benefits if you decide to rent a condo. You will not be responsible for property taxes or most major repairs. Association fees can be negotiable between yourself and the condo’s owner. Most condos can provide you with increased living space and some type of outdoor patio or balcony.
Renting a condo is a much better opportunity than renting an apartment. Condos typically have in unit washing machines and dryers and a number of other amenities that are not available in an apartment. Many condos have indoor parking also. Condominium complexes often have pools and other recreational spaces that are available for condo inhabitants.
Before signing another lease on an apartment, explore some other options. If you can afford to rent a condo, and you will be surprised on how low the rental price is when compared to your apartment rent, take advantage of the opportunity to do so. You will appreciate the extra space, additional amenities, and all of the other benefits associated with condo living. The real estate market has an abundance of great opportunities that are available right now, waiting for you to take advantage of them.
Tags: rent a condo, Rent a condo chicago, Rent to Own Condo
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Thursday, March 26th, 2009
There are a couple of major reasons why someone would want to rent to own a Chicago Condo.  First, it is an excellent opportunity for cash strapped home buyers to accumulate enough down-payment to purchase a home. Secondly, due to recent economic conditions it is an opportunity to repair some credit issues that will eventually put you in a place to buy a home or condo.  There are some areas that need to be considered before you make the leap to homeownership.
What is rent to own and what kind of agreements are needed? Rent to own is in its simplest form renting a home or condo with the opportunity to purchase at a later date. The lease to own or lease-option agreement is both a lease that allows you to occupy the home and an option that allows you to purchase the home in the future at an agreed upon price. The typical agreement may offer a part of the rent to go toward down-payment or closing costs. For example, $200 a month may be applied toward the down-payment where at the end of the year $2400 has been accumulated towards the purchase.
One other area to be aware of when you are interested in a rent to own a Chicago condo is the lease-option is not an obligation to buy. It is an opportunity to purchase with the advantage of a known purchase price and a potential rent credit toward down-payment or closing costs. In most cases if you choose not to purchase the credited rent is usually forfeited to the owner which is a form of compensation to the owner to offer the option. Remember while you are there the owner cannot sell the property to someone else and remove you from the property so keeping a portion of the credited rent is understandable.
One last area to be aware of when considering a rent to own option is who is responsible for the taxes and insurance. There are also association fees when you rent to own a Chicago condo and who is responsible for them while you are leasing. Obviously the owner is responsible for these costs since he or she owns the property and enjoys any tax advantages that come with home ownership. Of course, once you have purchased the condo or home at the end of the lease option term, you will be responsible for the taxes, insurance, and association fees but then the property is yours and the satisfaction of being a home owner.
Tags: Chicago condos for rent, Chicago condos for sale, Chicago Real Estate, Chicago real estate agents, Rent to Own a condo
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Wednesday, March 18th, 2009
Rent to own Chicago condos are here to stay for quite a long time. The real estate market has changed so dramatically over the last three years that I can’t see the chance of it going away for quite a while.
The rent to own programs offers so much to both sides of the transaction, that it becomes very apparent why so many people are using them right now. First, you have the buyer, who was able to get financed three years ago unable to get financed to by a condo today because the rules have changed. They either need more money down, or they have to have a better credit score to qualify. What do you do?
The rent to own Chicago condo allows for a tenant to save a portion of their monthly rent until they have enough to either qualify for a financing loan or it allows them time to save for a down payment. Which ever is needed, time is the key here. Let’s say the down payment needed to buy a condo in Chicago is roughly $20,000. If a tenant only has ten thousand, he or she can live in the unit for a year, pay rent to the landlord and use a portion of that rent to go into an escrow for the down payment. Will the banks allow you to do this? Yes! There are restrictions but it is done everyday. What if you have the down payment but you do not have the credit score to qualify for a condo loan? Same thing…time. The rent to own program will allow you the time to repair your credit while living in the unit you’re already going to buy anyway.
This process is so popular right now that there are companies that exclusively represent only buyers and sellers wanting to do this. If you are interested in going forward with a rent to own Chicago condo, it’s a must to put yourself in front of a professional Realtor that knows what they’re doing. They will be able to walk you through all the necessary documents and product that you’ll need to review before making a decision. Remember, buying a condo will most likely be one of the most expensive purchases of your life. Make sure you do not take this process lightly. Work with the best and demand excellence.
Rent to own condos in Chicago can be found by going to a local realtor or a condo specialist. In today’s market, you’ll find them all over the Chicago area.
Tags: Chicago rent to own condos, condos, condos in Chicago, rent to own Chicago, Rent to own Chicago condos, rent to own real estate
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