| The biggest real estate trend right now for the Great | | | | and often the seller will help with financing. The buyer |
| Lakes state is lease to own homes in Michigan. During | | | | then has time to improve his credit during the duration |
| difficult times, people always become more creative. | | | | of the lease and can then get traditional financing if |
| With houses simply not selling, homeowners who need | | | | needed later. |
| payment relief have begun to turn more and more to | | | | - You get to try the home out before you buy it. If it |
| what is sometimes called the lease option to buy. | | | | turns out you don't like the home and don't want to buy |
| This strategy also goes by many other terms, the | | | | it, you can simply choose to not exercise your lease |
| most common of which is known as the rent to own. | | | | option when the term expires. |
| It is a method of selling homes that works better in | | | | - Legal control of the home without owning it yet. You |
| some areas of Michigan than others. For example, | | | | may also often assign your interest to another buyer |
| finding a lease option to buy in Grand Rapids, Michigan | | | | as long as the seller agrees upfront to this. |
| is very popular nowadays. | | | | Ok, now why would sellers want to lease to own |
| This isn't surprising due to how livable the city is: | | | | homes in Michigan. Well, there are many advantages in |
| - Minutes away from the shores of Lake Michigan | | | | it for them as well. |
| - Named one of the top fishing cities by Field & | | | | Some of the biggest ones are... |
| Stream Magazine, July 2006. | | | | - Get closer to FMV (fair market value) for your home. |
| - Named as one of America's Most Livable | | | | Try selling your home thru a Realtor in a bad economy |
| Communities | | | | for a sum anywhere close to its appraised value. You'll |
| - Grand Rapids ranked as one of the healthiest towns | | | | soon find out it's nearly impossible. But with lease |
| for men by Men's Health Magazine | | | | options you are tapping into a whole new group of |
| - Named by Christianity Today Magazine as one of | | | | people who want to own homes but can't get the |
| the top places for Christians to work in America. | | | | financing they need or will have to pay extremely high |
| Of course, Grand Rapids isn't the only area where the | | | | interest rates. This allows lease to own homes in |
| rent to own is popular. Many properties in Southeast | | | | Michigan to sell for much closer to their FMW, as these |
| Michigan are being sold in this manner. | | | | people are willing to pay more. |
| There are many reasons why both Michiganders or | | | | - Better care of your property. This one is really simple |
| people who live out of state would want to lease to | | | | to understand. If someone is renting to own your home, |
| own homes in Michigan. | | | | chances are much better that they will care for your |
| Here are some of the biggest advantages to the | | | | property as if were their own -- because it will |
| lease option to buy. This is applicable anywhere, not | | | | become theirs in the future if they exercise the option |
| just in Michigan. | | | | to purchase. |
| Pros for the Buyer: | | | | - Less headache than a landlord because the tenant |
| - Rent Credits -- this means a portion of your monthly | | | | pays for maintenance on the property, not you. |
| lease is credited toward your down payment on the | | | | - Longer lease terms (often 2 years or more) and less |
| house (another way it can work is that this portion of | | | | vacancy. Longer lease terms also benefit the buyer if |
| the monthly lease is deducted from the price of the | | | | he or she has credit issues and needs time to improve |
| home when you buy it at the end of the lease term). | | | | their score. |
| - Less cash needed to get into the home. Most | | | | Real estate investors, like this author, can also help |
| homeowners have to put down 20% of the house | | | | facilitate lease option transactions. Through our |
| value to avoid PMI (Private Mortgage Insurance) fees, | | | | networking and contacts, we locate sellers who are |
| and also have to pay closing costs which can total | | | | willing to sell their properties on lease option. As long as |
| thousands. If you lease to own a home in Michigan, | | | | the sellers are motivated and willing to work on terms, |
| you'll need to put down a much smaller amount, often | | | | we can work with them. We then put the property |
| anywhere from 3 to 4%, which is sometimes called | | | | under assignable contract....locate a buyer for it, and |
| option consideration, and closing costs will often be | | | | then assign our interest to the buyer. |
| paid by the seller. | | | | Real estate investors have helped thousands of sellers |
| - People with poor credit who can't get a loan from a | | | | and buyers come together for win/win solutions, and |
| bank can often lease option to buy a home. This is | | | | often have the tools necessary for buyers to repair |
| because there is no bank needed to get into a home, | | | | their credit quickly. |