Thank you for your interest in the Advantage Rent-to-Own vacant home program.
We offer a unique home buying partnership that connects established investors with renters who wish to own. This process, allows both renter/buyers and their investor/backers to profit in a reliably safe investment.
This Rent to Own program has many features that make it attractive both to our property owners and our renters. For our owners, property managers are put in place to take away the hassles of renter maintenance and collection. Contracts ensure owners sell their property for an appreciated value to their renter. This system makes it possible for renters to achieve their dream of home ownership and provides incentives and support to make it possible. Renters can enjoy building equity into a property that they will someday own. Further benefits include government tax credits and a substantial rent credit upon completion of our 2 year program.
If this seems of interest to you, we would love to set up a time for a real estate broker to meet with you to clear any questions.
How it Works
A local broker will come to your house, explain the rent-to-own process and answer any questions for you and take pictures for marketing.
Advantage Rent to Own will have 60 days to find a renter for the property for no expense to the owner.
Once a renter is found they are put through a qualification process. Upon succeeding they are placed in the home with an agreement to pay rent that is 15-20% higher than current market value. The $3,000 professional service fee for these placement services will be paid if and only if a renter is in place.
The property owner is then set up with Farnsworth Property Management Company that will take care of all maintenance and rental collection.
An agreement between the owner and renter is signed stating the renter can purchase the home in 2 years for a predetermined appreciated value.
Each month the property management company will collect the check from the renters. A flat $75 management/maintenance fee will be deducted from the amount. The rest of the rent is then passed on to the property owner.
Affiliates will also council the renters on a quarterly basis to help them increase their credit potential and ensure their ability to purchase the home.
At the end of the 2 years, the home price will have appreciated (due to contract) 10-14% the value it was worth 2 years earlier
If the renter agrees to purchase the home, the extra 15-20% rent they paid each month will be totaled and used as a down-payment for the home.
This down payment helps the renter have a solid start to purchase the home while ensuring the owner a profit from appreciated sale.
Why it Works
The current Real Estate and lending markets have changed. Many people who normally could purchase a home are now struggling to do so. These future home buyers may be struggling due to a lack of down payment, or because an incident occurred that affected their credit scores. These problems have also affected investors who purchased homes in the hopes to resell them quickly.
With the program we have set up, both parties can be winners. Each member is cared for and given the attention they need to make this a safe investment environment. The benefits can be endless.
Benefits For Homeowner:
A renter is found within 60 days for no fee
Property management services are provided to ease the burden of owning a rental unit
Positive cash flow for the investment
Learn how tax benefits can apply to property investments
Property will sell for a determined appreciated value
Benefits For Renter:
The extra 15-20% of rent will be saved as a down payment for purchase of the home
The deposit paid by the renter is also credited towards the down payment for purchase of the home
Renters receive quarterly credit counseling to help in any future home purchase
Renters have incentive to care for the house they may soon call home
Frequently Asked Questions
Q: What about the one time $3,000 professional fee?
A: The fee provides you with professional broker services, finding a renter within 60 days, property management services
Q: How do you qualify the tenant?
A: The tenant fills out an application that determines why they can’t currently purchase the home. It goes over their current income and makes sure they can currently afford the monthly payments. It checks the reasons for their low credit scores except those that are due to one time events. Finally they go through a background check.
Q: What if the agreed purchase price of the house and the appreciating value is not made a the end of the rental period?
A: The realtor and investor work out with the renter a compromise to get the deal done.
Q: What happens if the tenant vacates the house?
A: We will reload renters for free in the first year. After the first year we will reload at 50% of the original $3,000 professional fee.
Q: How do you determine the value of the house?
A: We have the realtor or broker determine the comparable market analysis at the time the owner is beginning the program.
