Rent To Own
Rent-to-Own Program Description
Real Estate Wealth Available To All.
We hope to help community members who don't qualify for traditional mortgage loans to own a home through a rent to own program.
This rent to own program is designed for the benefit of our participants to tap into real estate wealth with an ultimate goal of homeownership.
Because our only goal is wealth creation for our participants, this program removes the predatory clauses of traditional rent to own programs and allows participants to keep gains created by the property at the end of the term, regardless of the program outcome.
With this approach, everybody wins: the banks, the participants and the community. Together we can make a difference!
Affordable housing is limited and the lending industry does not qualify everyone. The public is not able to enter the real estate wealth cycle.
Many individuals for no fault of their own are not able to find real estate loans though traditional, assisted, affordable or other loan programs available. Many individuals are financially able to sustain and afford a recurring housing payment, yet because of credit issues, lending rules, federal regulations and other systemic issues are not able to secure a loan.
To offer individuals homeownership benefits while resolving systemic issues so they can own real estate property.
Offer a rent to own program to our participants where at the end of the term, will have the option to buy or walk away from the property while keeping the capital gain.
We will seek bank partnerships that will offer a loan product for our program that will allow us to purchase a home with a pre selected participant which will rent to own a property and have the option to apply for traditional mortgage at the end of the term. We will work with the participant towards complete the complete bank prerequisites for qualifying for a traditional loan at the end of the term.
They are the individuals that invest or donate to the program. Funding can take one of several forms: 1) Money to be used as downpyment assistance, 2) An individual selling a home through the program, where it is rent to owned before it is sold to a participant, 3) A home they donate to the program for the benefit of the program, and more. Point of note: Any donation will, in essence, last for ever as funds will be recycled by the program over and over again.
Participants will be screened and vetted by our program before they are accepted. In parallel, they will be participate of our 'Day by Day Wealth' program. Once accepted, we will first attempt to provide home ownership options through traditional avenues. Only then will we offer our Rent to Own Option.
There are many ways to secure a properties for this program. Today I can think of the following:
A participant provides de whole of the downpyment for the purchase of a home.
With the help of our funders and a required downpyment by the participant, we will buy a house at market price.
Find a community member who is interested in selling their home through our rent to own program. In essence, renting it for a predefined term before it is sold.
A community member donates a property to the program.
Once a property is secured, it will be used as the subject property for our rent to own program and offered to a preselected participant.
Rent To Own.
The participant will sign a three to five year rent to own lease with an option to buy at the end of the term. All terms of the transaction will be described here. At the very least, we will see the purchase price, the rent amount, participant terms and responsibilities , lender terms and responsibilities, funder terms and responsibilities, end of life agreements and benefits, etc.
Rent will be calculated as a net zero or break even amount for the property. In other words, we will calculate rent as: PITI + management fees.
At a predefined term the property will be sold. If the participant is able to buy the house, he does under the predefined agreement. If he cannot, the property is sold and the participant keeps the capital gain from the sale.
The founders have option to reinvest or have returned. In essence, donated and reinvested funds will last for ever as they will be re-used over and over though the life of the non-profit.