Updated about 11 years ago on . Most recent reply
I am thinking of listing all six of my properties as lease to own
I really don't see the downside for me. I ask 5% down as the option fee, add an extra $100 to my monthly rent and as a slightly above market price for the unit. It seems like a win win for me. If the buyer/tenant decides to buy after the term, i simply do a 1035 Exchange on another one and start over. If they choose not to buy, I keep the extra funds paid. What am I missing here?
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JR, it depends on the state. In an attempt to cut out predatory lending in Texas you have if start foreclosure the property must go to auction. "rent-to-own" must convert to this as well after 6 months. Good idea to talk to a real estate attorney as I learned this while in the process of owner financing some raw land.