Is anybody willing to upload a boiler plate Rent to Own leaseI presume it is a 10 paragraph clause added to a regular leaseThanks
This is what Frank typically gives out at the bootcamp with the Resource Library. I have it, but I’ve paid and attended Bootcamp. I’m reticent to send it out as I consider it F&D’s intellectual property. Let’s wait and see if Frank responds to this post and what he says is OK.-jl-
First of all, you can’t do “rent to own” any more as it’s considered a “disguised mortgage” in many states, and therefore you have to be SAFE Act licensed and compliant. The “rent/credit” was not our invention, but was devised, I believe, by SUN Communities. Under a “rent/credit” you rent the house as a straight rental, but you give the tenant the ability to store up “credits” of a percentage of the home rent portion of the agreement that can be used same as cash to buy the home – or any other home in the park – when they have amassed enough of them. It is similar to the Southwest Airlines Frequent Flyer Rewards, and is a huge creator of greater tenant retention. We have been doing the program long enough that we have already had people redeem their points – plus their tax refunds – and buy homes for cash. But it has absolutely nothing to do with a mortgage or a rent-to-own, and we would not dare do either since 2008 (when they passed the SAFE Act).We won’t post a copy of our personal rent/credit documents on the forum, as we’ve spent significant legal cost in obtaining them, but we do provide them free at the Boot Camp, as Jefferson said. You can build your own, however, if you do enough research – it’s not rocket science.
There is another option- you can do a lease with a option to buy. There are a few things that must be in place though. The primary one is the option price can not be ‘nominal’. It must represent a number in the fair market threshold for the area your selling the home. So if you leased an older home- say mid 90s 3 bed 1 bath for $350 / month, maybe for 48 months, then sold the home for $5,000 at the end of the term, or they could continue to lease the home from you. That is of course just an example of how a program like this might work, I am not stating any values on homes, and they are market driven.