If you read my last post titled, “Top 7 Myths About Rent To Own Homes Deals For Buyers, you already know what the Top 7 Myths are. If not, here is a quick review:
Top 7 Myths About Houses for Rent to Own:
- You can’t qualify for the First Time Home Buyer Tax Credit of $8,000
- You can’t write off or deduct interest and property taxes like you can when you get a mortgage
- You can’t get your payment reported to the credit bureaus
- You aren’t considered an owner because deed and title haven’t changed hands
- You will never own the home because more than 80% of owner finance deals never result in the buyer actually owning the home
- You can’t sell the home
- You can’t get into an owner finance deal and move if you haven’t sold your existing home
In my last post I promised to show you that, YES, YOU CAN overcome all of these myths.
Here’s how to achieve the following:
- LEGALLY get the First Time Home Buyer Tax Credit of up to $8,000 when you buy a house for rent to own
- Write off and deduct the interest and property taxes on your tax return to reduce your tax liability (always a good thing) just like you do when you have a mortgage and get a 1098 from the lender
- Get your payment reported to the credit bureaus
- Be legitimately considered to be an owner and get homeowner discounts on home owner’s insurance, car insurance, alarm systems and a myriad of other things
- Actually end up owning the home in your own name
- Sell the home if necessary due to job transfer, desire to change location, etc.
- Do a flip-flop or housing trade so you can move if you presently own a home and have a mortgage
How to LEGALLY get the First Time Home Buyer Tax Credit of up to $8,000
This is actually much simpler than you will believe. All you have to do to get this credit is meet the qualifications and have a properly structured owner finance contract that is in compliance with the installment sales contract guidelines set by the IRS. Our owner finance contracts were developed to be in compliance and our buyers who qualify for the tax credit get it. The last one we processed took only 3 weeks before the buyer received a nice little $8,000 direct deposit from the U.S. Treasury. To find out more and see if you are qualified, click here. (Technically, houses for rent to own do not qualify which is why we use an alternative contract structure.
How to Write off and deduct the interest and property taxes on your tax return
This is another great misnomer and once again, it is much simpler than you think. All you need is a properly structured owner finance contract that is in compliance with the installment sales contract guidelines set by the IRS and you can deduct the portion of your payment that is interest and property taxes. In most cases, this is the entire payment. It is deducted from a different line item than if it were interest from a 1098 from a lender but still deducted from your gross income to minimize tax liability. To find out how we just saved a client $400 per month, click here. (Again, rent to own contracts do not do this so we have developed special contracts to help our clients meet their goals)
How to get your payment reported to the credit bureaus
Again, a very simple solution. Work with a rent to own company that actually reports to the credit bureaus. A company that goes to the added effort and expense of reporting your payments has a true vested interest in your success with owning a home. To find out how we report your payments to the credit bureaus, click here.
How to be legitimately considered to be an owner without having the deed, title or a mortgage
Simply execute a contract on a home that is in compliance with the IRS’ installment sales contract guidelines which are considered to be bona fide sales. Then, you have the ability to get discounts on car insurance, alarm systems and a host of other products and services. One of our buyers told me that she saved literally $600 per year on her car insurance after she executed our contracts. To learn more about how she did that, click here.
How to actually end up owning the home in your own name
Step 1. Make sure your contract is structured properly. Believe it or not, there are real estate “gurus” that sell training courses and do seminars on how to structure the contract to ensure that you don’t ever own the home and have to keep continually paying them option money or down payments to stay. Not illegal but NOT cool. That is one reason that you need to be careful with rent to own houses. To find out more about the techniques used to do this and how you can protect yourself, click here.
Step 2. Immediately begin working on credit restoration so you can qualify for a mortgage in the shortest possible time frame. To learn how to get fast tracked for mortgage qualification, visit our credit restoration company.
How To Sell the home if necessary due to job transfer, desire to change location, etc.
If your contract is structured properly, you will have the ability to sell the property based on specified terms in your contract that dictate your purchase price. We can help you market and sell the home to another buyer.
How To Do a flip-flop or housing trade so you can move if you presently own a home and have a mortgage
Simply enroll your existing home into our inventory here so we can begin the marketing and then enroll as a buyer into our program here. If we don’t have a home in inventory that works for you, sign up for our Custom HomeFinder Service , fill out the HomeFinder Form and our staff will begin searching for properties that match your description, get them under contract and enrolled into our inventory.
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