If you know anything about Michigan’s economy, you know that it hasn’t been doing well for years, and may continue to languish. Lease option real estate in Fenton, MI is a strategy that is working very well in today’s economy whether you are a seller or a buyer.
Fenton is a city in Michigan, situated in Genesee County. The population is north of 10,000 and may be significantly higher than that by now since that number reflects a census that is 7 years old.
If you are a motivated home seller or want to purchase a home, you should understand the lease to buy real estate in Fenton, MI….because it has advantages for both the buyer and seller alike.
First, a lease option is also called a rent to own, so understand that these terms mean the same thing.
Some Advantages of Lease Option Real Estate in Fenton, MI
Are you being downsized? Job loss? Being transferred out of state? Paying two mortgages and can’t afford both of them? Simply can’t afford to make your mortgage payments anymore? If you’ve tried but can’t sell your home with a real estate agent, then the lease option may be just the thing you need.
Putting a tenant-buyer into your home will alleviate you of the monthly mortgage payments, and allow you to sell your home for much closer to fair market value than you’ll get listing it with a real estate agent in a slow economy.
Why is this?
Simply because your typical tenant buyers for rent to owns will not have the necessary down payment or credit score to qualify for a traditional bank loan.
This means that many of them will be willing to pay closer to the true value (appraised value) of your home than other people who can get bank financing. It also means you can get good market rents during the option period.
Advantages for Lease to Buy Real Estate in Fenton, MI
The advantages for the buyer are also numerous.
First, you get a shot at home ownership. Rather than wasting money on rent, you get an option to purchase a home that you like.
Even if you can’t get a conventional bank loan, and have bruised or damaged credit, you can purchase a home on a rent to own basis and stop wasting money on rent making a landlord rich.
Part of your monthly rent goes toward “rent credits.” This is money that is set aside and goes toward the purchase price of the home if you exercise the option to buy it. For example, if you are paying $1,200 a month on the home, $200 dollars of that might be allotted toward the rent credit, which means you are effectively building equity when you buy the home.
Although there are other benefits too numerous to list here, another one is that you get to “test drive” the home before you buy it. This is because if you set up the lease option real estate in Fenton, MI contract the right way, you have the option but not obligation to buy the home.
So, if your option is for 24 months, you can live in the home for 24 months and if it turns out you don’t like it, or the neighborhood, you can choose to not buy the home.
This really gives you a lot of flexibility and control.
It’s little wonder the lease to buy real estate in Fenton, MI is becoming one of the most popular ways to sell and buy houses here.
As real estate investors in Michigan, we are teamed up with experts who have structured and implemented countless lease options in this state in the past few years, and can assist you whether you need to sell your home or buy one on a lease option.
If the transaction is not set up properly, what is a potentially good thing for both parties can end up to be a nightmare. So make sure you do it right, or seek the assitance of real estate investors who can help put it together for you.
We also have credit repair programs so that if you want t rent to own, you will be able to vastly increase the chances of you being able to get that bank loan you need to buy that lease option home during the option term.