A con artist will only feel confident about the rent to own scam they are about to pull if they sense desperation from you. According to psychologists, the body language can communicate a lot about an individual. For example, if you’re desperate to get or have something, you don’t have to explain to anyone how desperate you are. You’ll be giving off the vibe using your body language. That’s why a little desperation from a mark is enough to make them a target.
If you, the mark, need a house to live in, you’ll be desperate to have a roof over your head. Maybe you’re not contented with renting a Houston house in Texas. You need something more, like climbing up the social ladder by owning a Houston home in Texas.
So you’d wish to buy a home in Houston, Texas. But unfortunately, this will be difficult because your credit is severely scarred. Even the local bar where you regularly hang out will start asking you for an advance. Securing a mortgage in that situation won’t be a walk in the park. Gradually, the desperation to own a home in Houston will grow. Your pride will be at stake. It won’t be easy to just sit by and see your family members and close friends achieve their real estate goals.
Then you see a rare opportunity. As you drive in town you come across an Ad that reads, rent to own. And you find yourself thinking, “So I can own my Houston home in Texas after renting it for a while?” And even though chances are you’ll pony up three times the amount you would have paid if you paid cash up front, you don’t really care. All is good as long as you one day live the American dream. rent to own deals are a tad bit different and less treacherous. The only thing you need to look out for is the “Option Fee.”
What’s the rent to own option fee?
The process is not free or cheap. Let me toss in a hypothetical situation that you’re most likely going to experience.
You get to work with a shady Houston landlord who is also in desperate need for fast cash seeing as he like gambling. He’ll need cash to pay off the gambling debt or meet the margin call at the stock brokerage. Obviously, the rental income is set in stone but they really need the cash. That’s where the “Option Fee” will come in.
They will list the Houston house and when you make contact, you’ll have to take the house at an option fee as you work on your credit situation. This amount is usually one to three percent of the property’s future purchase price. You’ll be able to calculate what you have to pay as the “Option Fee” once you sign the buyer-seller contract.
So it’s a win-win. You get to one day call the house your own and the shady landlord in Texas gets to pay all the gambling debts.
Property investment companies like ours can help you better understand this rent to own real estate deal. Call us today and talk to one of our representatives.