Please Offer Your Help...
I'm in dire need of some expertise from someone in the forum. I need some help on lease to own from the buyers side. As the tenant, what is it that I need to ask for. I've been living in the home for 20 months and the owner has offered to do a lease to own. Where might I find a contract for this in California? Please offer some detailed help for this newbie.
Thanks,
Mike Barker 
Specifically what is the situation Mike?
Thank you for offering your advice. We have been living in the home since 01/2002 @ $1500.00 a month, and have recently begun home shopping. The landlord knew this, and has decided since he recently retired, wants to sell the house. We live in the San francisco (Livermore) area and the homes are starting at around $350,000, unfortunately for us we aren't able to come up with much of a down payment. We are on very good terms with him and he has taken a liking to my wife and I, which I hope works to our benefit. I'm afraid that since we are so eager to start earning some equity, and have something of our own we will make a bad decision.
I need help from my perspective, the buyer, in getting this done with the most favorable terms possible. What should I ask for? Is it unreasonable to ask for back credit on rent paid? Can I expect to be able to sell the home while I'm still on a lease to own contract? How much rent credit should I ask for? What should I expect at the end of the contract?
I know I made this into a long story, but I thought I should include all the details you might need. Thank you again for all of your time and effort.
Mike
Thank you for offering your advice. We have been living in the home since 01/2002 @ $1500.00 a month, and have recently begun home shopping. The landlord knew this, and has decided since he recently retired, wants to sell the house. We live in the San francisco (Livermore) area and the homes are starting at around $350,000, unfortunately for us we aren't able to come up with much of a down payment.
-First, are you on a lease to own? You mention that later. What type of downpayment would you be able to come up with?
We are on very good terms with him and he has taken a liking to my wife and I, which I hope works to our benefit. I'm afraid that since we are so eager to start earning some equity, and have something of our own we will make a bad decision.
I need help from my perspective, the buyer, in getting this done with the most favorable terms possible. What should I ask for? Is it unreasonable to ask for back credit on rent paid?
-If you do not ask you shall not recieve. HOWEVER, if it was not a stipulated part of your inital lease, don't expect anything. And for gosh sakes, be very tactfull when you aproach him.
Can I expect to be able to sell the home while I'm still on a lease to own contract?
-Yes, if you get the deed.
How much rent credit should I ask for?
-That depends on what you think you can get. You have to create win/win. Is there any way to find out what he is paying PITI per month? If yop can, than give him some profit, but ask for some back. eg. You are paying $1500.00. His PITI on the property is $1000.00. See if you can get a $300.00 p/mth rent credit. You are giving him the first $200.00 as profit.
What should I expect at the end of the contract?
-What contract? Are you in a rental agreement or a lease option?
I know I made this into a long story, but I thought I should include all the details you might need. Thank you again for all of your time and effort.
NP
Jesse
Hi Jesse,
Thanks again for your time. Currently, our lease had expired so we have gone on a month, to month lease. We are able to come up with about $10,000 as a down, but that leaves me with no savings.
You mentioned getting the Deed from him. How do I handle that part, and is it normal for that to be done? If it is, can you tell me how I approach that? Is there anything else I haven't mentioned, you feel I should be asking for?
I know this is time consuming on your part, to be offering your help, but I want you to know that my wife, and I appreciate it very much.
Thanks,
Mike
Quote:
On 2003-08-06 08:42, dolphins72 wrote:
Hi Jesse,
Thanks again for your time. Currently, our lease had expired so we have gone on a month, to month lease. We are able to come up with about $10,000 as a down, but that leaves me with no savings.
You mentioned getting the Deed from him. How do I handle that part, and is it normal for that to be done? If it is, can you tell me how I approach that? Is there anything else I haven't mentioned, you feel I should be asking for?
I know this is time consuming on your part, to be offering your help, but I want you to know that my wife, and I appreciate it very much.
Thanks,
Mike
What I would do is to put together an amortization schedule, and see what the payoff would be in 3 years or whatever term you are talking to the seller about. The difference between that and the selling price would be the minimum I would ask for in rent credit. If you can get more, you are technically getting forced appreciation. I would get the deed put in escrow to protect myself. You can have a clause to the contract that state and or assigns, which would allow you to sell the house if you chose.
Good Luck,
Shawn(OH)
Okay, I will try not to look to stupid here! Since I'm new to this, I can say that I have never made an amortization table. Can you be a little more detailed on the deed part of this? Is it common for the deed to come into play on L/O? What book if any would you recommend for my needs?
Please excuse my ignorance here, but I guess this is my starting point.
Thanks,
Mike
Quote:
On 2003-08-06 14:47, loanwizard wrote:
What I would do is to put together an amortization schedule, and see what the payoff would be in 3 years or whatever term you are talking to the seller about. The difference between that and the selling price would be the minimum I would ask for in rent credit. If you can get more, you are technically getting forced appreciation. I would get the deed put in escrow to protect myself.
I'd also try to get a performance mortgage on the property, just in case.