Take Out A Loan To Pay For My Rent-To-Own House?

[@jbivphotography]

I'm so glad I listened to my gut. Recently a home I was looking at the realtor offered me a rent to own deal when I told him I wasn't ready just yet to purchase. It felt like a trap.

[@jimroscovius]

It was!!

[@melissab0515]

It is a trap!

[@torsten6777]

They usually make a contract for a year, hoping you can't close on a purchase loan within that year and then they keep all your money and repeat with the next victim.

[@scottc3165]

"if the current owner runs into trouble you lose everything." That's enough for me.

[@WILL-sn4us]

Right😂

[@agdevoq]

Own-to-rent is a much better approach...

[@stephon972]

you outta pocket and I love it

[@fetch.aigeneral163]

😭😭😢

[@ChadPavelcpa]

Love it 😊

[@Littleboy1976]

💪

[@yp6499]

😂😂😂

[@stanleykania7184]

Rent to own is a win win for some people. It depends on whatever a persons situation is.

[@marineboy4181]

Yeah but 90% of people that are renting to own they are just paying off that particular amount of money and they don’t have a pot or pan to Pee in Basically a lot of these people that do stuff like that are paying paycheck to paycheck of course if you have already a lot of money and you’re making like A lot of money and you particularly like that particular home but it’s a little over what you can fully pay off yeah but that’s only a dime in a dozen 99% of people don’t have money like that so it’s a bad risk like the guy that’s calling obviously he’s paying paycheck to paycheck he doesn’t really have that type of money

[@marineboy4181]

Just like he talked about people that make a lot of money by half of the money that they are making on expensive cars that is true and a buy a crappy home a lot of people don’t know what they’re talking about it most people claim they’re smart like when you buy a car it loses value I don’t even need to listen to all of it he’s going to say buying a home with Lane is a good investment because you can get more money back or you can get the money you speak into it same as buying gold it has good face value or it has good Financial investment compared to buying a car a car it’s only expensive because it’s sitting on a lot it loses a lot of value real quick just like buying clothes nobody wants to spend thousands of dollars on clothes that somebody else been wearing you know what I mean

[@jimroscovius]

I sold a mobile home via rent-to-own, and it worked out great. They even paid it off early. But a house? Never. We bought our house after that from a lady who had it as a contract for deed, but the people weren't paying the bank. She had to get rid of it, and we got it for cheap. She wasn't happy, but too bad. She made a bad deal and that's on her. Don't do rent-to-own!!

[@ajoyforlife1]

Know someone who did a rent to own and the owner wasn't making the mortgage payments and the bank foreclosed on the property. Tenants had to move and lost everything they paid the owner.

[@ShiningSakura]

Another problem with rent to own is some owners are scammer scumbags who will take out another loan on the house, not tell you, then after you paid of the house they will run away from the second loan. End result is you lose the house and they got your money and the banks with the second loan.

[@georgemendez6760]

wouldn't the loan follow them since you didn't sign for it?

[@richard77231]

@@georgemendez6760 But there would still be a lien on the house.

[@alinatamashevich3354]

That is why you get a title check AND buy the insurance to cover if the title is clouded.

[@ShiningSakura]

Not sure, I know this because a mexican woman bought a house this way and is poised to lose it thanks to some crooks she rented to own the place from. Paid in full and will lose it all most likely. Saw it on youtube.

[@alinatamashevich3354]

@@ShiningSakura Happens everyday! She "bought" a house under the table. The title search would have cleared up who has a lien on it. Always hire an attorney

[@bobdole870]

My coworker got herself in to a rent to own agreement. Owner died, and owners kid is claiming the house. She’s going through court now trying to resolve everything. Absolutely do not get yourself in to this kind of agreement.

[@homecookteresagreen]

I was taught in a homebuyer’s education class that rent-to-own is a definite no no.

[@The3baddogz]

Learn something every day on this channel.

[@amyx231]

That’s a great rent amount! Wow. Over here $1000 is a studio. 80k for a house…that’s dirt cheap. That said, “rent” is a lot more than mortgage interest would ever be.

[@ESponge2000]

Another good idea is called “prepay yourself” to own

[@TheAhmedvienna]

Love this video. Very unique case and Dave's response is really good. Very educational. I now learned never to do such deals if it comes up.

[@fhuber7507]

Rent to own is high risk for the buyer. converting to conventional mortgage is 100% a good plan.

[@runningdebate2670]

Thank God this caller just got right into it with income and debt and bills.

[@blackworldtraveler3711]

Remember a lot of this rent to own going on in the 80s. I think it might have been popular because of the high interest rates maybe. I don't think it went too well for some reason.

[@chuckbizzert9098]

It doesnt really work, cause the home is not in your name until completing the contract. And yeah it was probably caused by the 8-10% interest rates from the 80s

[@jimroscovius]

Why would anyone want to make payments on a house that they don't own? Better off renting.

[@blackworldtraveler3711]

@@jimroscovius It never made sense to me. Rent was a lot less than a mortgage back then.

[@jimroscovius]

@@chuckbizzert9098 Interest rates were 15-17% in the '70s under Carter. And some people today think it's so rough. They are big babies!!

[@marineboy4181]

⁠@@jimroscovius people are stupid and a lot of people that do that think they’re smart I’m dealing with this one narcissistic posting and he’s talking about he’s renting to own lol and I told him I already have a house paid off for and this dude is a complete loser and people like him need to learn the hard way I would never help my ops Like literally people like that definitely need to learn the hard way renting to own is like college it’s a scam any idiot knows that if anything I’d rather rent like you said and save my money my little pennies build my equity up in a savings account because I’m really savvy like that and by the time I hit 60 or 50 70 I could literally buy me a nice house for my retirement and I can pass it down to my kids when I die but you know idiots like the guy said in the video will spend $60,000 on a car that loses value is it saving that money for a home because I want to be popular and knowing it will lose value quicker than anything if you spin a type of money on a home you can literally keep it until the equity build up on that house and you can sell it for more than what you paid for or you can get your money back what you paid for people don’t think like that I’d rather buy a crap bucket drive that around and have a nice place to live does paid off and then I can buy a better vehicle

[@happyandhealthy888]

yes it needs MEDIATION Agency , i agree

[@jrhunt414]

I sense this is a trailer. Common investment strategy with rent to own trailers. Hopefully it’s financable or actually worth that much with the work he says it needs.

[@Andrewlaba]

ayeee Im in Casa Grande right now, small world.

[@ChadPavelcpa]

Pretty slam dunk deal to borrow at 50% LTV. But $100k houses are rare to come by. Good luck if you pursue this.

[@adamseidel9780]

$675 a month??!!! How the heck, where? And you can acquire an asset worth $100k for a $50k price? Yes, you do that immediately, no questions asked. Huge profit! How does anybody need to be told to do this?

[@user-jy7yw5kw3w]

The middle of the desert.

[@AP-uk4di]

My rents $675 including all utilities, in WV about half hour outside of Pittsburgh

[@adamseidel9780]

@@AP-uk4di for a full house? I guess it makes sense for a place like West Virginia

[@torsten6777]

He said he had been making years of payments towards the house on top of his monthly $675 rent, so he is not getting it for half price.

[@SavageBunny1]

How do you make 80k a year and live in a 100k house, and you're asking questions about 50k, that doesn't make any sense.

[@rayhill5767]

Depends on where you live.

[@happyandhealthy888]

2:06 that´s why you make contract.

[@Uchihawallstreet]

I did it with electronics years ago, but I would definitely not do it with a house lol

[@timlinator]

I have a rental with a long term ten year plus tenant who really loves the house. I want to sell it and would like to offer it to the tenant. The house doesn't have a mortgage and I am open to holding the note. Is this a good idea?

[@crazy3rdgen]

Had a tenant want to do this. I declined because it's not safe for either party.

[@torsten6777]

Why would it not be "safe" for the seller?

[@happyandhealthy888]

2:00 no it is on your name in the contract if you buying it.

[@johnbehneman1546]

Great video and education. Thanks for sharing

[@craigcarter400]

He is about half hour south of me. That is a good warning worth heeding.

[@bluegillmich]

Unfortunately, they will finance a 6% loan, it's better than the other options.

[@victoriaquetel2822]

Dave! Preach! Preach loud on this! Rent to own is a terrible idea!

[@ShlindaDavis]

I don't know why anybody will do a rent to own program . It's always a risk getting had . You responsible for anything going wrong. Plus in the long run, end up not owning the home.

[@indigoGoddess7]

That’s not true. It depends on the contract that you have and what’s in the agreement. Going the traditional route might not be feasible for everyone as all circumstances differ. But if you actually think about it, you still don’t own your own home even with a mortgage 😂 Stop paying those taxes and see how fast the banks will come back for the house. Miss a few months and your mortgage and see if you won’t get locked out. 😅

[@QueenStylin]

He doesn’t seen as panicked as I would be. Scary position to be in.

[@stevenporter863]

Ya. Caller seems very cavalier, almost too much.

[@johndone8045]

Then. Why just get a regular mortgage and finance it

[@torsten6777]

Maybe the seller still owes $125k mortgage on the house. If he gives him $50k there would still be the mortgage against that house.

[@edwincorona9487]

Ok but what happens if the house is from a company is it still not safe?

[@natachamusser]

So what is the difference with renting and apartment and paying $1,500 a month, verses doing a rent to own acting like you are paying an $800 a month rent?

[@dtagdoesnttakeagenius1934]

You and owner go to the county and add the renters name on the deed with contract and rent to own is completely safe!!

[@flonutra-pe9nh]

What if the homeowners house is in a trust?

[@anthonykence9954]

Buy a house with your own loan. Some of these rent to own are not that ligit

[@chuckbizzert9098]

Is this a serious question? There's so much wrong with him even asking that question!

[@sherryobar5750]

Will they let them pay it off with different loan?

[@happyandhealthy888]

in rent to buy agreement it your name also.

[@victors16811]

I Didn't know that exist!

[@rubenmurillo8484]

Owner can just put the house in a trust

[@wonderlyfe8892]

Thanks for the advice. Will be calling my bank on Monday and see if can get loans with them…

[@faith5584]

I’m debating because my father bought a house outright to flip and resale, I really like it and have been looking to move out, he said he’d let me Buy, Rent, or Rent to Own, He doesn’t have a mortgage because he paid for it. He said we could workout a deal where I pay for utilities and rent etc, I have options and I trust him. I believe this to be a great opportunity for me to get my first home, from someone I trust. I could borrow the money and buy the house outright, but then I’d be in debt; so I’d rather rent to own. What’s your thoughts on this situation?

[@J3llyBean423]

SRB my fault / ... it's a lot of people / ...

[@blaquopaque]

[@stevenporter863]

1:36 Wow! Almost fell off my chair since Dave suggested a loan. Understand the reasoning but this is a prime example why it seems silly to make a blanket statement like he does a lot.

[@eddieblake097]

amen

[@adamseidel9780]

It’s a mortgage. He allows mortgages.

[@mannyjeanpierre4062]

you must be new here

[@Cravz69]

@@adamseidel9780 Yes, which is the exception to Dave’s teachings (and he acknowledges this)! And there is major risk involved.

[@stevenporter863]

@@adamseidel9780 Ya, but he is not at that step yet. Dave made an exception since he was stuck as to which of his rules to break. You have to see humor in that!

[@johnbehneman1546]

My laptop is not working today

[@DanBelsky_Health_Money_Love]

Thank you for your awesome advice. We need to start investing our retirement cash. How much do you charge to coach us? Our investing Club wants to get in touch with you, how can we call you?.

[@johnbehneman1546]

Thank you so much. I will not do that.

[@dominicankid1001]

Agree 100 💯

[@2hrsToChooseThis]

George’s favorite line: “I’ve been getting messages asking if this is a good idea” Lol sure little buddy. I’m sure you are.

[@davidp5341]

He’s one of the main Ramsey personalities. Why wouldn’t he be asked financial questions?

[@superblump87]

Why would he make that up?

[@lukeharris2622]

✝️🙏

[@kjackson3593]

Nothing with the word RENT in it is ever wise

[@torsten6777]

but it also has the word own in it!

[@Troutani]

First