In the current real estate market, there is so much misinformation about rent to own house and owner finance deals that it is difficult to know what is fact and what is fiction. In large part, this is because most of the people that now proclaim to be “experts” aren’t experts at all. Most of the so called “experts” never once did a rent to own, lease purchase, lease option or owner finance deal until the market collapsed and they were left with little option. than to offer houses for rent to own. Instead of actually educating themselves, they learned just enough to be dangerous and then began buying into their own nonsense and selling it to other people. The rent to own housing market would be so much easier to navigate if these people would just take the time to educate themselves.
Who am I to say such things?
I have been involved in real estate in one capacity or another for more than 20 years having worn all of these hats: investor, Realtor, mortgage banker, mortgage broker, mortgage company owner, property owner, tenant, landlord and editor of one of only two approved real estate continuing education courses in Florida.
I have personally been involved in thousands of transactions in more than 30 states nationwide and actively work in real estate in all 50 states presently. I have personally done lease option and “subject to” deals myself on personal properties. I have made (and, unfortunately, LOST) a great deal of money in real estate. With that comes collegiate knowledge that you simply cannot get any other way.
So, with that out of the way, presently, here are the
Top 7 Myths About Rent To Own House Deals:
- 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 when you are in rent to own housing
- 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
Without trying to sound like Obama, “YES, YOU CAN!!”
With a properly structured rent to own or owner finance deal, these are ALL myths! Unfortunately, many people are held captive and lose money, credit reporting, ability to move and opportunities because of their lack of knowledge and bad or malicious information designed to help the investor profit. As with anything, knowledge is power and in the case of owner finance deals, it isn’t always what you know, but who you know (and what they know or don’t know).
In my next post, I will show you exactly how, using an appropriately structured rent to own/owner finance deal, you can achieve the following:
- Get the First Time Home Buyer Tax Credit of up to $8,000
- 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
Read the next post, Overcoming Top 7 Myths About Rent To Own Homes Deals For Buyers
If you are looking for a house for rent to own, we would love to help you! Call or email today! We yould love to show you how rent to own housing can help you meet your financial goals. If you have not already, make sure that you check out our rent to own homes listings!
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