Rent to own help needed

[Laurent P.]

Hello,

I have a client who can’t purchase a home right now due to issues with an ongoing divorce, but she needs to get a new place ASAP.

I am not too familiar with rent to own, but I thought that could be a solution for her while she resolve the papers issue. Could someone point me in the right direction, and/or put me in contact with someone who knows more about that potential solution ?

[Joe Villeneuve]

Originally posted by @Ari Hadar:

Originally posted by @Joe Villeneuve:

I'll answer any question you might have.  Just PM me.  There's a lot of old school info that will just get you into trouble with the recent changes in lending laws.

Answer here so everyone can see 

I have...many times.  Just do a search for LO and my name.

Here are some highlights:

1 - The Lease Option strategy is not a single contract.  There are two contracts involved:  The Lease AGreement and the Option Agreement.  Never mention the "other" contract in either contract.

2 - There should be no credits given.  This would tie the two contracts together, and as the seller, you don't want that to happen.

3 - The Option Consideration is the entire cost of the Option Agreement and in no way should be used, al or in part, as any form of Down Payment.  The Option Consideration buys the Option Contract...that's it...and is NOT refundable.

4 - A third Contract, the standard Purchase Agreement, happens when/if the Option Agreement is exercised.

5 - The Property in question should never need any rehab.  Why would someone do rehab on a property they don't now, and may never, own?