Seller Benefits of a Rent to Own
Financial Benefits
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Downside Protection:
If your buyer should fail to procure a mortgage loan, or waive the purchase option at the maturity of the lease term, you retain the deposit, rent, an all accumulated equity.
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Rent Premium:
Rent to own landlords typically collect a rental rate premium in exchange for offering a purchase option.
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Tax Friendly:
Avoid short-term capital gains with a "fix and flip" strategy by renting to own the property to a tenant, just be sure the lease extends more than a year from your date of purchase.
Transaction Benefits
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Responsible Renters:
Your tenant has a large personal equity stake in the home you are selling, and as a result will treat your property just like his own.
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No Traditional Real Estate Transaction Fees:
Avoid 6% real estate commissions by selling your home to your tenant.
* YOU PAY ME ONLY 3% TOTAL.