Defining a “Rent to Own” Property

and How the Process Works... 

In today’s unpredictable economy, with gas prices, health insurance premiums, utilities and mortgage foreclosures all hitting record highs, we state from our professional and personal experiences with utmost confidence that the “rent to own” process is bar none the best avenue for anyone to purchase, sell or invest in today’s real estate market.

THIS IS HOW OUR RENT-TO-OWN PROCESS WORKS: The future homebuyers (sometimes also called tenants) first pay a nonrefundable option fee that will be applied to the final purchase price of the home. The homebuyers/tenants will then begin paying the person selling the home (or landlord) a monthly fee (rent) to live in that particular property for a contracted period of time (lease). In many cases, part of the monthly rent will be applied to the down payment or final purchase price of the home.

At any point during the lease (usually a twelve to thirty-six month period), the homebuyers can purchase the home from the seller (landlord) for the amount both the homebuyers and seller originally agreed upon.

A “rent to own” scenario is perfect for people who want to stop throwing their money away month after month by renting an apartment or house, and start building equity by purchasing a home of their own.

A “rent to own” scenario is equally perfect for people who are selling their property, as they will secure a “top dollar” final sale price, and potentially pocket more money by avoiding realtor commissions.

Why AlleWest’s “Rent to Own” Buyers Will Succeed

We generally find people interested in our rent-to-own program because they think their less-than-perfect credit history will stand in the way of securing a mortgage, or people who are in the process of cleaning-up their credit but no longer want to waste time or money renting without the benefit of future ownership.

Many former and current clients shared their experiences with us with other rent-to-own organizations. The potential homebuyers felt these companies were only interested in taking their option money, and did not care if they failed to secure a mortgage at the end of their lease.

And they were right. In fact, the number of successful rent-to-own buyers who make the transition from renters to homeowners in other programs is extremely low. Why? Because no effort is made to pre-qualify potential homebuyers and determine how long it will take them to secure a mortgage, and exactly how much house they can truly afford.

Before our clients even begin shopping for a rent-to-own property, we ask that they first meet with one of our dedicated mortgage companies. These organizations are familiar with the rent-to-own program and share our understanding of our clients'  financial situation. Our mortgage companies will run a credit history, review their credit report and credit score, and determine not only when they will qualify for a mortgage, but also how much they can afford as a monthly rent.

With the financial data in hand, we will help our buyers move forward by designing a customized credit repair plan, to keep them on track in the weeks and months ahead to reach their ultimate goal of securing a mortgage and home ownership.

Our rent-to-own buyers enter the marketplace with the peace of mind knowing exactly what they can afford, and when they will qualify for a mortgage. Once they find the home of their dreams,  buyers fully realize the benefits of our program:

• Their money is always working for them: The entire option fee as well as part of the monthly rent will be credited towards the final sale price or towards the down payment.

• Available properties are almost always ready and waiting for our buyers. Once paperwork is completed and option fees are paid, they are immediately welcome to pack their bags and move in.

• Time and incentives are on their side: While living in the home that will one day be theirs, they will have the opportunity to eliminate the credit issues that may be standing in the way of securing the best mortgage possible, while at the same time building equity.

How AlleWest’s “Rent to Own” Program Benefits Sellers

By far the best way for sellers in today’s real estate market to secure their property’s full asking price is through our rent to own program.

April 2007 foreclosure filings were up 65% from last year, and experts predict foreclosure activity to remain above last year’s levels for the rest of this year. As Illinois currently has one of the ten highest foreclosure rates in the country, AlleWest and members of its national sales team have experienced a dramatic surge of rent-to-own buyers.

Consequently, our teams secure top-dollar final sales prices for sellers and investors who had unsuccessfully tried to move their properties in the past, either as “for sale by owner” or through a realtor.

Why sell your property with AlleWest’s rent to own program?

• The current real estate market is flooded with houses for sale, at a time when financial institutions have replaced generous lending practices with much stricter mortgage guidelines. There are currently many more sellers than qualified buyers.

• Due to the high foreclosure rates across the country, many families are opting for rent to own properties. This increased demand for quality rent to own properties has skyrocketed over the past few months, resulting in our sellers securing quality buyers and higher-than-average monthly rental fees.

• AlleWest will only show your property to buyers who have been pre-qualified through our extensive credit review. Our buyers already know they can afford the monthly rent, know when they will qualify for a mortgage, and are actively working to repair their credit.

• Our buyers are exactly that: Buyers. Unlike month-to-month renters, our clients will take great care and pride in your home, as one day they will own it themselves.

• Your property will be featured on our national website and marketed to our vast database of buyers, renters and investors – groups that comprise more than 95% of the people who buy real estate.

AlleWest’s “Rent to Own” Program: A Win-Win Scenario

Bottom Line: AlleWest’s “Rent to Own” program is by far the safest avenue for anyone to purchase, sell or invest in today’s real estate market. As you can see, AlleWest’s program is designed to benefit people on both sides of the real estate table.

When you’re ready to buy a home, sell your home, or explore investment opportunities in real estate, AlleWest is ready to work with you.