Comments on: How a Rent-To-Own Works http://paulmhecht.com/how-a-rent-to-own-works/ Paul M. Hecht Canadian real estate investing Mon, 20 Sep 2010 21:23:55 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Jeff Miller http://paulmhecht.com/how-a-rent-to-own-works/#comment-387 Jeff Miller Mon, 20 Sep 2010 15:58:44 +0000 http://paulmhecht.com/?p=233#comment-387 Long story short. Was doing quite well in Stoon with property, however I had to give that to an ex wife, so trying to get going again. Have a rental and a rent to own on the go, and my own residence, but now deposits are the problem. However, I go to all seminars that I can, yours, Darren Weeks etc, but your info is always the best.I find the others are just salesmen for their own products. Long story short. Was doing quite well in Stoon with property, however I had to give that to an ex wife, so trying to get going again. Have a rental and a rent to own on the go, and my own residence, but now deposits are the problem. However, I go to all seminars that I can, yours, Darren Weeks etc, but your info is always the best.I find the others are just salesmen for their own products.

]]> By: Paul M. Hecht http://paulmhecht.com/how-a-rent-to-own-works/#comment-381 Paul M. Hecht Fri, 17 Sep 2010 22:13:50 +0000 http://paulmhecht.com/?p=233#comment-381 Michelle, The rent-to-own itself does not re-build their credit. The fact that the rent-to-own is typically completed over a 24 – 36 month timeframe allows time for the tenant/buyer to rebuild their credit with the credit bureaus. The interest rate, type of loan, etc are dependant on the personal situation of the tenant/buyer. For example, are they self employed, a T4 employee, is their credit score 500 or 680, do they have car loans, have they had judgements, do they have co-signer, what is their income amount and how long have they ben employed, etc, etc, etc. The best way is for the tenant/buyer to get pre-qualifed with a mortgage broker BEFORE entering into an RTO. The mortgage broker will then give a "likelyhood" that the person will be able to get a mortgage in 24 or 36 months. Foe example, we worked with a tenant/buyer recently who could get a mortgage on their own today, but lacked enough downpayment. We've also worked with tenant/buyers who had 10% down yet needed a higher credit score. Hope that helps, All the best, Paul M. Hecht Michelle,

The rent-to-own itself does not re-build their credit. The fact that the rent-to-own is typically completed over a 24 – 36 month timeframe allows time for the tenant/buyer to rebuild their credit with the credit bureaus.
The interest rate, type of loan, etc are dependant on the personal situation of the tenant/buyer. For example, are they self employed, a T4 employee, is their credit score 500 or 680, do they have car loans, have they had judgements, do they have co-signer, what is their income amount and how long have they ben employed, etc, etc, etc.
The best way is for the tenant/buyer to get pre-qualifed with a mortgage broker BEFORE entering into an RTO. The mortgage broker will then give a “likelyhood” that the person will be able to get a mortgage in 24 or 36 months.
Foe example, we worked with a tenant/buyer recently who could get a mortgage on their own today, but lacked enough downpayment. We’ve also worked with tenant/buyers who had 10% down yet needed a higher credit score.
Hope that helps,
All the best,
Paul M. Hecht

]]> By: Paul M. Hecht http://paulmhecht.com/how-a-rent-to-own-works/#comment-380 Paul M. Hecht Fri, 17 Sep 2010 22:02:08 +0000 http://paulmhecht.com/?p=233#comment-380 Michelle, The rent-to-own itself does not re-build their credit. The fact that the rent-to-own is typically completed over a 24 - 36 month timeframe, allows time for the tenant/buyer to rebuild their credit with the credit bureaus. The interest rate, type of loan, etc are dependant on the presonal situation of the tenant/buyer. For example, are they self employes, an employee, is their credit score 500 or 680, do they have other car loans, have they had judgements, etc, etc. Michelle,

The rent-to-own itself does not re-build their credit. The fact that the rent-to-own is typically completed over a 24 – 36 month timeframe, allows time for the tenant/buyer to rebuild their credit with the credit bureaus.
The interest rate, type of loan, etc are dependant on the presonal situation of the tenant/buyer. For example, are they self employes, an employee, is their credit score 500 or 680, do they have other car loans, have they had judgements, etc, etc.

]]> By: Paul M. Hecht http://paulmhecht.com/how-a-rent-to-own-works/#comment-379 Paul M. Hecht Fri, 17 Sep 2010 21:33:38 +0000 http://paulmhecht.com/?p=233#comment-379 Jackie, The seller does not write a cheque back to the tenant/buyer when they eventually buy the home. It is shown as a credit. The tenant/buyer can use the credit towards down payment, closing costs or to reduce the final price. Typically they use it as a credit on their down payment. If the tenant/buyer does not excercise - then "yes" they forfeit any option deposit to the seller for tieing up their property. All the best, Paul M Hecht Jackie,

The seller does not write a cheque back to the tenant/buyer when they eventually buy the home. It is shown as a credit. The tenant/buyer can use the credit towards down payment, closing costs or to reduce the final price.
Typically they use it as a credit on their down payment.
If the tenant/buyer does not excercise – then “yes” they forfeit any option deposit to the seller for tieing up their property.

All the best,
Paul M Hecht

]]> By: Bruce http://paulmhecht.com/how-a-rent-to-own-works/#comment-195 Bruce Wed, 19 May 2010 11:16:59 +0000 http://paulmhecht.com/?p=233#comment-195 Hello, How does a RTO work in the sense of rebuilding credit for a renter? What kind of loan would they be able to qualifly for? How are they able to know if they will be approved once the term is up? Hello,

How does a RTO work in the sense of rebuilding credit for a renter? What kind of loan would they be able to qualifly for? How are they able to know if they will be approved once the term is up?

]]> By: Michelle http://paulmhecht.com/how-a-rent-to-own-works/#comment-163 Michelle Mon, 19 Apr 2010 21:03:58 +0000 http://paulmhecht.com/?p=233#comment-163 Hello, How does a RTO work in the sense of rebuilding credit for a renter? What kind of loan would they be able to qualifly for? How are they able to know if they will be approved once the term is up? Hello,

How does a RTO work in the sense of rebuilding credit for a renter? What kind of loan would they be able to qualifly for? How are they able to know if they will be approved once the term is up?

]]> By: Jackie http://paulmhecht.com/how-a-rent-to-own-works/#comment-98 Jackie Wed, 17 Feb 2010 18:19:47 +0000 http://paulmhecht.com/?p=233#comment-98 1. How does the seller handle the down payment at the end of the term if the sale is going to proceed? Will he have to give a cheque to the tenant/buyer for the accumulated amount, or does he reduce the price of the house? I'm not sure how this part of the deal works. 2. If the tenant/buyer decides not to proceed at the end of the term, does the seller keep the option money as well as the initial deposit? Thanks for all your advice. I loved your book! 1. How does the seller handle the down payment at the end of the term if the sale is going to proceed? Will he have to give a cheque to the tenant/buyer for the accumulated amount, or does he reduce the price of the house? I’m not sure how this part of the deal works.

2. If the tenant/buyer decides not to proceed at the end of the term, does the seller keep the option money as well as the initial deposit?

Thanks for all your advice. I loved your book!

]]> By: Paul M. Hecht http://paulmhecht.com/how-a-rent-to-own-works/#comment-49 Paul M. Hecht Thu, 05 Nov 2009 00:20:31 +0000 http://paulmhecht.com/?p=233#comment-49 Mike, An RTO give the tenant time to rebuild their credit and shows the eventual lender a steady history of payments. At the end of the term, the tenant/buyer will be applying for financing based on the personal credit, income and downpayment near the end of the RTO agreement. A tenant has no guarantees that they will be able to qualify for a mortgage when the term is up. However, in all our Rent-To-Owns we send the tenant/buyer to a good mortgage broker before entering into an RTO. The broker assess how and when the tenant/buyer will be able to qualify for a mortgage. The broker will give them a plan as well as personal credit repair advice and as long as the tenant/buyer sticks to the plan - then the success rate is very high. All the best, Paul M. Hecht Mike,

An RTO give the tenant time to rebuild their credit and shows the eventual lender a steady history of payments.

At the end of the term, the tenant/buyer will be applying for financing based on the personal credit, income and downpayment near the end of the RTO agreement.

A tenant has no guarantees that they will be able to qualify for a mortgage when the term is up. However, in all our Rent-To-Owns we send the tenant/buyer to a good mortgage broker before entering into an RTO. The broker assess how and when the tenant/buyer will be able to qualify for a mortgage. The broker will give them a plan as well as personal credit repair advice and as long as the tenant/buyer sticks to the plan – then the success rate is very high.

All the best,
Paul M. Hecht

]]> By: Shane Ballance http://paulmhecht.com/how-a-rent-to-own-works/#comment-48 Shane Ballance Tue, 03 Nov 2009 22:27:52 +0000 http://paulmhecht.com/?p=233#comment-48 Hi Paul, I've been going to many seminars over the past couple years on real estate and wealth creation. I have recently decided to take action into my own hands because I am busting my butt and not getting ahead. I have recently teamed up with a couple of real estate individuals to start a partnership into rent to own on Vancouver Island. I am wanting to get a better understanding from someone who has already experienced what I want to set out and accomplish, that is why I am emailing you. Are you going to be having any other seminars soon, and what advice can you give me, as to be in contact with you and learn from you? Regards, Shane Hi Paul,

I’ve been going to many seminars over the past couple years on real estate and wealth creation. I have recently decided to take action into my own hands because I am busting my butt and not getting ahead. I have recently teamed up with a couple of real estate individuals to start a partnership into rent to own on Vancouver Island. I am wanting to get a better understanding from someone who has already experienced what I want to set out and accomplish, that is why I am emailing you. Are you going to be having any other seminars soon, and what advice can you give me, as to be in contact with you and learn from you?

Regards,
Shane

]]> By: Mike http://paulmhecht.com/how-a-rent-to-own-works/#comment-44 Mike Tue, 20 Oct 2009 16:13:55 +0000 http://paulmhecht.com/?p=233#comment-44 Hello, How does a RTO work in the sense of rebuilding credit for a renter? What kind of loan would they be able to qualifly for? How are they able to know if they will be approved once the term is up? Hello,

How does a RTO work in the sense of rebuilding credit for a renter? What kind of loan would they be able to qualifly for? How are they able to know if they will be approved once the term is up?

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