MN Rent To Own
RENT TO OWN INFORMATION
WE SPECIALIZE IN OWNER FINANCED HOMES IN MINNESOTA & WESTERN WISCONSIN-CONTRACT FOR DEED PROPERTIES ALL AREAS.
Rent- lease- option- arrangement, the seller is giving you the right -- at some point in the future --Rent to buy the house at a price that is agreed upon today.
Usually, a portion of your rent over a specified lease period goes toward your eventual down payment. Typically, a Minnesota tenant would pay slightly above-market rent over the lease period, usually from one to Five years, for the right to enter into this arrangement. It''s also common for the tenant in Minnesota or western Wisconsin to pay a fee in "option money," or for the privilege of having the option.
For example, if a house in Minnesota would typically rent for $1,500, you might be asked to pay $1,800 per month, a portion of which -- say $300 -- would be credited to your eventual down payment, depending on the contract you work out. Such an option usually expires at the end of the lease. In other words you must exercise the option before the lease expires.
Must be careful in some lease-purchase agreements, you are contractually obliged to buy at the end of the lease. Minnesota Sellers and agents now often use the two terms interchangeably. But whatever name they attach to the arrangement, make sure you have the option.
The arrangement gives you more time to think about the deal plus provides a built-in structure to save for your down payment. It also allows you to discover any flaws in the home that may not have been detectable on an inspection and to get a feel for the neighborhood without committing to a long-term mortgage.
In Minnesota areas where real estate values are quickly rising, locking in a purchase price on the day you sign the initial rent-to-own contract could be very profitable for you. If appreciation is significant during your lease portion, You will come out way ahead. The problem with this theory is that good lease-to-own deals are generally scarce in hot sellers'markets. If a seller sees rapid appreciation, there is no motivation to agree to sell at today's price a year -five years later. Only Minnesota owners who've had their properties on the market a while, or had to move away quickly and are struggling with two house payments, are likely to agree to a lease-purchase arrangement.
Another potential disadvantage is that you may be obligated to tend to repairs and maintenance throughout your lease stage, instead of the landlord. Under most lease-to-buy contracts, any money or sweat equity you put into major improvements will not be reimbursed in the event you eventually opt out.
Where do you find Minnesota or Western Wisconsin rent-to-buys? Most real estate sales agents and real estate rental agents have listings. Also, try an Internet search under " MN rent-to-own homes " followed by your city''s name. Or, if you see a rental home that you really like, just ask the leasing agent if the owner might be agreeable to a Mn rent-to-own arrangement.
BOARDWALK PREMIER REALTY INC
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