Real Estate Talks

www.katlanproperties.com

Cheesy Ad on Craigslist: http://vancouver.craigslist.ca/pml/apa/5207861008.html

I think I will call them to get more details. My guess is that it'll be similar to those scams that get seniors to sell their homes through a takeback mortgage for a super high interest rate.

Got an email reply... sounds like a reverse subprime?

Our program helps our clients to get ready for a mortgage from the banks to achieve home ownership. We prequalify you with a licensed mortgage broker for a budget and time line. Then we pair you up with a licensed realtor specialized in the area you are interested and find you any property on the market within the budget. We ask our investor to purchase that property for you. You lease the property from our investor and purchase the property at the end of the program at a predetermined price. As a part of our program, we usually ask 3% of property value or $10,000 up front (depending on whichever one is higher) as your initial option consideration which will be used as a part of your down payment at the end of the program. A portion of the monthly payment will also go towards your down payment, so by the end of the program you would save enough for your minimum required down payment. We tailor our program based on each individual’s financial situation to ensure you are comfortable with estimated home ownership cost.

To answer your question, you can pick any types of properties on the market within the budget we provided you. It could be detached houses, townhomes, or condos. You would still be paying rent during the program, and additional amount is required for saving up the down payment. As you are not carrying a mortgage during the program, there is no interest rate involved. We are tracking your progress and will help you to get mortgage from the A Lenders (major banks) at the end of the program, which means your mortgage interest will be what the banks offer 2 or 3 years later.

The devil is in the details. Don't commit yourself to anything. Hope that it's not the type of thing like the fixed price for long term LNG that turned into a bonanza for the seller.

hahahaha...Rookies!

Everyone is a rookie to you. But, we are 'here' and you are 'there'. Can you explain that? Did you make a dumb mistake, or was your entire life a mistake?

Jimmy, you seem a little bit out of shape this morning.....
take a deep breath and remember, it's not real.
It's all in fun!
Are you having fun yet?
haw! haw! haw!

Rent to own usually only works with family/friends. It's really about a non legally binding promise and allows the owner to claim ownership and borrow against it while still collecting revenue. Being family/friends their idea might be to actually sell it to you some day (or even just give it to you as inheritance).

Your legal recourse is limited as a 'renter', though it all depends on the contract.

One idea for rent to own that I have seen work is that the contract transfer over to real ownership after a down payment has been paid off. In that case the window of vulnerability is much more narrow. TBH though, this work best for things like trailer park pads or things that actually make financial sense for such people to own.

Austin:

It's really about a non legally binding promise and allows the owner to claim ownership and borrow against it while still collecting revenue

.... there are laws that govern this situation as well so yes, these agreements can be legal and binding.

As Jimtan said, the devil is in the details. As legally binding as it might be though, you have to worry about whether or not you have first dibs on assets if the owner gets hit and goes bankrupt (as real estate speculators like to do). This is why the version where you're paying off just a deposit versus the whole shebang is good because your window of vulnerability is smaller.

fwiw, my father sold many many 'rent to own' properties (without going bankrupt).

Good. What happened to you?

He's not a CUSTARD like you!

Just Saying.

He's not a CUSTARD like you!

Still mad eh? hee hee hee! tee hee hee!

Just sayin'....copycat!

http://realestatetalks.com/viewtopic.php?f=8&t=129482

fwiw, my father sold many many 'rent to own' properties (without going bankrupt).

Did your father see many tenant-wannabe-owners walk away during the renting part and lose alot of $? What about if housing prices crash - the lender would be vulnerable?

Some did, sure, but not too often. Like you said, if the prices dropped then there would be vulnerability to the lender, so there was incentive to get the lots sold. Note that my father also subdivided and developed the lots as well - he engaged in this as another method of offloading the lots as some of his customers couldn't come up with a sufficient deposit.