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Rent-to-Own vs Lease Option
In
2005--texas passed law that
effectively prohibits homes from
being sold with traditional
lease option agreement. Due to perceived abuses of the lease option by
unscrupulous landlords, who were believed to be using contractual
technicalities, for the purpose of keeping option consideration without
providing the related purchase option, legislators limited the option
period to six months. While this does solve the percieved problem,
it effectively limits the purpose of the lease option to
nothing more than a six-month trial rental period prior to the
purchase, making lease options useless for helping tenants move into a
house while they rebuild their credit or build a down-payment toward
the ultimate goal of buying the house.
Our rent-to-own system is the closest approximation to a traditional
lease option available in Texas. We do this by completing a seperate
rental contract, that includes a larger security deposit collected over
time, and a sales contract with a delayed closing date. The effect is
the same, but unlike traditional lease options, an added benefit to our
customers is that the larger security deposit we collect over time is
credited toward the purchase of the property 100%! This security
deposit crediting also increases our customers' ability to qualify for
financing when it comes time to execute the purchase contract, because
the bank will treat those credits just like our customer walked in with
a briefcase full of cash!
Why Rent-to-Own?
We've all
rented at some point in our lives. Sure it's nice to be free from
worry about major repairs, to have someone else ultimately responsible
for the place, etc, but most of us want a place to call our own. It's
part of the American Dream! You want to own! You want to be the king or
queen of your own 3/2/2 kingdom!
This of course is where the world usually comes in and beats you down.
"You don't have enough down-payment!"
"Your credit-score is too low!"
...And on, and on.
Most of us simply seem to have too much month at the end of our money,
and are still paying tuition to the school of hard knocks for that
class on credit card management we never realized we enrolled in until
the dean of collections sent us an official notice.
So what options are there?
Enter our rent-to-own program!
To start, we only ask $500 for an initial deposit!
No 1st month's rent & last month's rent hurdle to vault.
Next, we keep our rents reasonable. Our rents are based on the
comparative market value of the property, not on how much we think we
could squeeze out of a tenant.
More importantly, we allow our customers to lock-in a purchase price
for the property up to one year in advance, so you don't have to worry
how much it will cost. You'll know, and you'll have a legally
enforcible contract on it.
We want our customers to buy our properties.
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