Minnesota rent to own - how it works

What is Minnesota Rent To Own? Today you will learn how it works and have a better understanding if this service is a good fit for you.
 

There is a new transition in the real estate market, more people are renting and investing in rentals then ever before. Lack of inventory and higher prices has a lot to do with this new trend. With these transitions new opportunities are created that not only benefit the investors but the renters as well.  The newest and greatest concept is rent/lease with option to buy, or rent to own. Only a select few agents practice this service, and even the ones that do still have limited knowledge.  
 

What is rent to own, how does it work, and how can it benefit you? These are questions that many of my clients have, and today we are gonna break it down. First I am a Realtor with the RE/MAX franchise. I have been practicing the rent to own service for the last 7 years as it has become a core part of what I do, other then the traditional help people buy and sell.  
 

What is rent to own? Most people think of contract for deed when they hear the phrase "rent to own." This is nothing like contract for deed, a very common misconception. This is more or less, you pick the home, location, and the move in date and my partnered investor attempts to purchase the home selected so that you can move in and rent with the option to buy later. Inventory consists of homes currently for sale on the market in the selected approved communities.  There are hundreds of homes and plenty of locations, primarily in the major metro cities and their suburbs.  
 

How does it work? When you apply based on your income, credit, and background you will be provide a rental budget. With that rental budget you are able to now shop for homes currently for sale on the market in your approved budget price range. When approved I will create some customized searches so you can start sharing homes of interest. I review the homes shared, and confirm which homes meet condition and safety requirements then coordinate showings.  We then meet at the homes, and walk the properties until you find a home that is a good fit for you. That's when the process starts. I will work with the investor to draw up a cash offer and present to the sellers. Once the sellers accept the offer the investor will be under contract to buy the home you picked so that you can move in and rent, with the option to buy. Rent to Own! Once we have confirmation that we have an accepted offer the investor will confirm, then coordinate and collect a 2 month security deposit within 2 days of going under contract.  So whatever the confirmed rental amount is for the home that is selected, double it that's your security deposit. Next, investor will perform an inspection of the home from top to bottom, if all goes great there will have a closing. On average this process can be done in as little as 60-70 days, that timeline starts once the home you have selected is under contract.   
 

When you move in first months rent is collected at a prorated rate, you will have a 1 year lease with a  renewable option for up to 5 years guaranteed. If you decide you just want to rent a very nice home no problem, after the lease expires for however long you wish to stay you will be refunded your security deposit back minus any damages. Just like any other rental. In that same period of time if you have any desire to purchase, and can secure financing from a lender of your choice, you can exercise your right to purchase at anytime. Any and all security deposits collected up front can be applied to your down payment if that's what you decide is best for you.  
 

How can it benefit you? If you are relocating, have troubled credit, new to home ownership, need short term living options/long term living options, flexible renewable lease options, recent bankruptcy, self employed, separating, ect this service will work for you. If you are looking for better options in a more desirable community this service will bridge that gap. Because of lack of current inventory in the current rental market, this service opens the door to hundreds of new possibilities. This service will get you into a home you most likely are not ready to commit to, or are not able to get into because of financial/credit issues. With the flexibility of being able to "Try Before You Buy" you can test drive the home, area/neighborhood, and perfect your credit. When the time is right you are able to decide what is best for you!
 

Who do you know looking to  rent or rent to own? This is a national service as well! Be sure to share with friends and family, this service is bridging the gap to home ownership and creating new opportunities for people just like you!
 

RE/MAX Professionals Rent & Rent to Own Homes Minnesota Specialist Brian Zimpel  612-412-5561