Rent to Own | Blue Fence Real Estate

How It Works

RENT TO OWN : TERMS

Length: We usually set the length of each contract at 2 years. This seems to be
the length of time that works best for most people. It allows you the needed
time to build and/or fix credit problems.

Down Payment: Instead of paying the traditional security deposit for renting,
you will pay a Down Payment. This is a non-refundable amount in which you
put down to 'lock' the purchase price. The Down Payment will be credited back
to you upon execution of the Option to Purchase. If you do not execute the
Option to Purchase the property, you lose this money.

Rent: Is just like the traditional rent payment, this is the money you will not get
back.

Rent Credit: Rent credit is similar to the principle payment of a mortgage. Every
month you pay rent, the amount of the rent credit will go towards the final
purchase price. If you do not choose to purchase that property, you will forfeit
that money which was credited towards the purchase.

Final Purchase Price: This is the amount that you will be purchasing the
property for at the end of the 2 year contract. At the closing table, when you
purchase, is when you will be credited with your Down Payment and all of the
Rent Credit that has accrued. This money will pay for your Closing Costs and
your Down Payment on your home loan.

RENT TO OWN : SCENARIO

Lets put the numbers to the terms and conditions so that you can see how this
works... Meet Jack & Jill and Sally & John

Jack & Jill at this time cannot qualify for a mortgage. However, they do not want
to just throw away their monthly rental payments.

Sally & John, have a house they had listed for six months with no one
interested in purchasing. They want to move to a smaller house in a town 20
miles away so they call Blue Fence and agree to an option purchase listing.

With the assistance of their Blue Fence agent, Jack & Jill find Sally & John's
house listed for $250,000.

Jack & Jill make a down-payment of $6,000 at the time of signing the option
purchase contract. On the 1st of the month, when they move in, they pay the first
month's rent of $1,500. ($300 of which is the rent credit.)

Sally & John are able to purchase a new smaller home with the assistance of
their Blue Fence agent.

Two years go by, Jack & Jill have paid their rent on time, every time. In the mean
time they have worked to build their credit score. They have been approved for a
home loan on the property.

Jack & Jill have just closed on their very own home! and Sally & John just sold
theirs!

Details...

The purchase price of the home was $250,000. They were credited back the
$6,000 down payment and 2-years worth of rent credits of $7,200. Plus, at the
time of signing the purchase option, the seller agreed to contribute an
additional $5,000 towards closing costs. Jack & Jill purchased the home with a
loan amount of $231,800, which virtually makes their mortgage payment the
same as their rental payment.

Jack & Jill did not have to spend any money out of their pocket to complete the
purchase and were able to build equity while renting. Sally & John were able to
collect monthly rent to pay their mortgage all the while moving on with their lives.

Jack, Jill, Sally & John all benefited from the Blue Fence Rent to Own program.

Your official source for Rent To Own properties and purchase options on home rentals

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