Rent To Own - BEWARE!
Hello. Hello, hello. So you think you want to buy a house and you found a great deal and you've made an agreement to rent to own. Let's talk about this. My name is Laura Key. I am the Realty Goddess of Los Angeles, California. And I "Help To Establish The Community One House At A Time" I've been in the business since 2006 I love what I do and I do what I love! "Rent To Own" or also called "Lease To Own" properties...you see them all the time. You see them on places such as craigslist. You see them, uh, advertised on Facebook sometimes. Sometimes you just hear people saying that they're going to the least own. Maybe you see them on those little yellow signs that ya see driving down the street and you think to yourself, this would be a perfect situation for me. I don't have enough money to buy right now, but if I get into a home that is leased to own, this may be something that is great for me.
If it sounds too good to be true, 99% of the time it is too good to be true. Let me give you an example of what just happened today. I deal with bank owned properties. A lot of the times I have to go and make sure the property is secure I have to make sure that the property is vacant and if someone is living there, I need to get their details to report back to the bank. The lady that I went to the home with today was shocked to find out that the house has been sold. She has been living in this house for the past three years. She's been paying rent and fixing the home because it was her understanding that she was in a rent to own situation and now she found out today that the house belongs to the bank and she is facing eviction.
Guys, let me give you some tips and tricks. If you come across rent to own that are extremely important for you to abide by. Don't put your fingers in your ears so that you can't hear. Don't cover your eyes so you can't see this video. These are hard facts, but they're true facts. If you are looking to do a lease to own number one, do not just take a verbal understanding. Do not just take a basic contract. What you need to do is you need to get an attorney for you and the other person can get an attorney as well so that everyone is represented appropriately. You want to contact an attorney so that they can draw up legally binding contracts that outline the full terms of you renting to own. Number one that needs to be addressed. How long will you be renting before you apply that money to owning the home?
What happens if you need to break the contract on your side? Will you get your security deposit back? Will you get the funds that you have put toward the home back or will you get a percentage of that back? What happens if something breaks in the home? Who will handle the repairs and you need to make sure that any and all funds are put into a very safe place where no one can touch it without you all signing an agreement. Guys, rent to own can happen. Unfortunately, I'm going to tell you since I have been in the business, I have never seen any that turned out well, but that does not mean that there aren't, as long as you go through the proper channels, attorney; official contract; all terms outlined and understood; understanding of where the money is going to go; how long will you be renting to own before you're ready to actually make it yours?
Who is going to handle the repairs? These things are critical for you to understand if you're even considering a lease to own, but as an agent who has never seen one work, I'm going to be very honest with you in saying that I don't feel confident and advising this type of deal. If you're not going to do it correctly, then don't do it at all. My information is above. If you have questions about leasing to own, please let me know. Regardless of whatever state you're in, I look forward to talking with you. Don't be the victim. Be the winner. My name is Laura Key. I am the Realty Goddess of Los Angeles, California, and "I Help To Establish The Community One House At A Time". I wish you nothing but love, light and blessings. Why not go out on a limb? Isn't that where the fruit is? Mmmaw Suga. Bye.
