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Niki Filly · 06-09-2011, 01:42 PM

I have rented my house out. they want to lease to own. i dont know if i want to. they have been late with rent 4 times in 13months. i need a lease/rent agreement so if they are late again i can kick them out & sell the house. Wanting to know how much it would cost to have some one write it up for me.
Niki

JONBALLS · 06-11-2011, 07:39 PM

Niki, office supply stores like office depot have standard form rental and lease agreements.Write in a payment policy that has a $25. late charge after the 5th, or whatever your comfortable with, then add $2.00 a day thereafter.Best of luck, its not an easy business.

atlcomedy · 06-11-2011, 09:25 PM

Plenty simple rental agreements online as well.

I'd consult with someone about a lease to own agreement. They are more complicated and frankly much more is at stake.

acp5762 · 06-12-2011, 12:02 AM

Rent to Own is really not that Complicated. In the contact you state that you agree to rent the house out for X-Amount each month. Assuming the Fair Market value of the house and what the Leasee can qualify for you state basically 20% of the value of the house. When the Leasee has paid 20% of the houses value then you can close the deal as a sale through a realestate Attorney. The leasee or buyer would have to assume a Mortgage of the house at 80% of it's value because they had paid 20% over a period of time like maybe a year. All of the above would have to be drawn up by a Realestate Atty or Broker. The leasee would have to sign it and be held liable for any violation of the lease/Buy agreement. Ok lets say that the House value is appraised at 200,000 dollars. The leasee agrees to a 20% mortgage on the house as a lease for a period of one year. Now you can put this into the contract after one year is up the leasee by law must obtain a loan for the remaining balance of the house value which is 160,000.00, lets say he renigs you can sue him. Lets say the leasee wants the house bad and will buy it after the year lease is up. the 20% that he is leasing is 40,000.00 and for one year his lease is 3333.00 After which time he can get a loan for 80% of the homes value which is 160,000. Thats how it works you don't lease a house for whatever like you rent. You base it on real value over a set time. What you are in essence doing with a lease to purchase is financing the down payment legally through a lease agreement. you can put whatever contigencies you want in the contract in terms of a future purchase. If the leasee signs all documents them him haws around at the end of the lease you can sue his ass. Check with your state on the Laws governing Lease to purchase contract agreements. Hope this helps and good luck.

JONBALLS · 06-12-2011, 06:01 AM

Niki, if you carry a mortgage on that house, you may not be able to lease to own.A well versed real estate attorney in your area probably is worth the consultation.wish u the best.

Guest052513 · 06-12-2011, 03:19 PM

Jon is absolutely correct. Your mortgage likely disallows this arrangement, and the tax complications are a headache, you don't want to get involved, especially if they have shown to be late. The legal headache of evicting someone who has "equity" in the arrangement virtually ensures you'll end up in court.

My advice would be to download a sample agrement (http://www.agreementsetc.com/rental-...t%20Sample.htm) and go from there. I own a lot of rental property and I have a good agreement in word version I can get to you if you don't want to go through the hassle, just PM me.

Lease to own arrangemnts are typically a poor idea from the leasee's perspective anyway, there is a moral hazard here for you to consider.

Guest052513 · 06-12-2011, 03:21 PM

ACP is right but unless you want to bust out a financial calculator acquaint yourself with PV/FV calculations and required ROR, I would steer clear or lease to own. If they could afford the house they'd buy it is my answer.

acp5762 · 06-12-2011, 05:01 PM

Quote:

Originally Posted by Robbie77007

ACP is right but unless you want to bust out a financial calculator acquaint yourself with PV/FV calculations and required ROR, I would steer clear or lease to own. If they could afford the house they'd buy it is my answer.

Well you're right. if they can afford the house they would purchase it conventionally. I personally would'nt lease purchase a house thats for sure. But being the economy is in a bad way for many comming up with a substantial down payment can be difficult for many. The lease to purchase could be a good strategy for those who have limited funds. 20% down on a house is the only way to go really you avoid the Mortgage Ins. that is tacked on until twenty % of the house is paid off that could take awhile plus the PMI adds about an additional 100 Dollars or more to your monthly note. Just an interesting note. I bought a House a little over a year ago. I was able to put down 20% of it's value. I paid about six months worth the notes and my father came up with a little strategy. He had a CD wich was only 2% int. Well he suggested to pay off my remaining Balance and pay him a note at 4% Int. he wins I win I guess. Well I went ahead and did it. My Int. Before was 4.85. so I save a little doing this and his investment gains a boost. There is really all kinds of interesting ways to deal with Realestate Transaction as long as all partys involved are on the same page.

atlcomedy · 06-12-2011, 05:11 PM

Quote:

Originally Posted by acp5762

Well you're right. if they can afford the house they would purchase it conventionally. I personally would'nt lease purchase a house thats for sure. But being the economy is in a bad way for many comming up with a substantial down payment can be difficult for many. The lease to purchase could be a good strategy for those who have limited funds. 20% down on a house is the only way to go really you avoid the Mortgage Ins. that is tacked on until twenty % of the house is paid off that could take awhile plus the PMI adds about an additional 100 Dollars or more to your monthly note. Just an interesting note. I bought a House a little over a year ago. I was able to put down 20% of it's value. I paid about six months worth the notes and my father came up with a little strategy. He had a CD wich was only 2% int. Well he suggested to pay off my remaining Balance and pay him a note at 4% Int. he wins I win I guess. Well I went ahead and did it. My Int. Before was 4.85. so I save a little doing this and his investment gains a boost. There is really all kinds of interesting ways to deal with Realestate Transaction as long as all partys involved are on the same page.

Somewhere out there is a Eccie Member/Lurker thinking to himself:

"Damn, I guess it wasn't as unusual as I thought. That's basically what I did with my son-in-law. Amazing, I was getting 2% before and we agreed on 4%. Just like this fella did. Small world. Oh, look, he's from Louisiana, just like my daugther's husband. Son of a bitch. Wait til I get my hands on that son of a bitch! Steppin' on on my daughter for call girls! The nerve!!!"

Guest052513 · 06-12-2011, 05:48 PM

lol

acp5762 · 06-12-2011, 07:07 PM

Quote:

Originally Posted by atlcomedy

Somewhere out there is a Eccie Member/Lurker thinking to himself:

"Damn, I guess it wasn't as unusual as I thought. That's basically what I did with my son-in-law. Amazing, I was getting 2% before and we agreed on 4%. Just like this fella did. Small world. Oh, look, he's from Louisiana, just like my daugther's husband. Son of a bitch. Wait til I get my hands on that son of a bitch! Steppin' on on my daughter for call girls! The nerve!!!"

Oh boy, lol

seductivesarah · 06-13-2011, 02:06 PM

i work with a group of investors who would purchase your mortgage and then you wouldnt have to worry about them being late anymore, if you are interested PM me

acp5762 · 06-13-2011, 03:21 PM

Quote:

Originally Posted by seductivesarah

i work with a group of investors who would purchase your mortgage and then you wouldnt have to worry about them being late anymore, if you are interested PM me

That might be a good idea Niki.

sgtbilko · 06-13-2011, 07:39 PM

For all you would be lawyers out there, you might want to take that first step that Shyster John and I did and enroll in law school. Then get through it, pass the bar exam, practice for a while under the tutelage of an experienced hand and get familiar with the law in the state where you live. Until you do that, your advice is not helpful and is in fact dangerous in case an unsuspecting person decides to follow it.

To put it plain (as we used to say in Western Oklahoma) you don't know shit from Shinola. Stop practicing law without a license. You don't know enough to help anyone but if someone took your "advice" they could sure enough come out on the short end of the stick.

acp5762 · 06-13-2011, 07:55 PM

Quote:

Originally Posted by sgtbilko

For all you would be lawyers out there, you might want to take that first step that Shyster John and I did and enroll in law school. Then get through it, pass the bar exam, practice for a while under the tutelage of an experienced hand and get familiar with the law in the state where you live. Until you do that, your advice is not helpful and is in fact dangerous in case an unsuspecting person decides to follow it.

To put it plain (as we used to say in Western Oklahoma) you don't know shit from Shinola. Stop practicing law without a license. You don't know enough to help anyone but if someone took your "advice" they could sure enough come out on the short end of the stick.

Then why don't you give her some advice instead of bashing others. Oh and bye the way I do have a Law Background. and my advice was quite sound and Legal.