As we’ve covered in a previous post, the real estate market in Kansas City is robust right now, and buyers and sellers are rightly looking to capitalize on the opportunities this brings.
While there are many ways to purchase real estate, there is one option that gets overlooked: Rent-to-Own.
While these kinds of properties can be rare, it’s good to know the basics if you are seeking this method of acquistion.
Rent-to-Own agreements come in two forms:
- Lease Agreement with Option to Purchase
- Lease Agreement with Purchase Agreement
In a Lease Agreement with Option to Purchase, you will often pay a fee (or sometimes put up collateral) at the beginning of your transaction for the OPTION to purchase the property in the future.
From our perspective, all things being equal, the following may be the superior solution.
In a Lease Agreement with Purchase Agreement, you set up your purchase at the beginning, using either a fixed purchase price, or a plan to close with a future appraisal.
Take a look at a related article on Trulia for more information.
If you plan accordingly, with the appropriate agreement, you might be able begin your journey to property ownership, even if you do not have the cash for a down payment.
Keep your eye out for these overlooked method of acquisition during your search. If you have any questions on how you can use Rent-to-Own agreements in your real estate endeavors, feel free to reach out! Call Doug Fuller for more information: