Thursday, August 20, 2015

Rent to Own

From Craigslist:

Hi, I am seeking seller financing for a home in West Seattle. Currently rent, tired of renting, newly divorced, so I won't have the 3.5% down saved for a long time! Desperately want to own a home again. Looking for someone who can offer me rent to buy option. Looking for payments no more than $1200.00 a month. My lease is due in Spring, I can put some funds down, but probably about $2000 if that works. Willing to sign a recorded contract and forfeit any deposit and all paid rent towards purchase in event of default (won't happen). Rent is very expensive so that is also why I want to buy. I'll even pay (finance $5,000) above your homes asking price in order to obtain financing, then can use down payment of rent in order to refinance home in my name (purchase is done as a refi if recorded and owned for a few years and contract needs to be added to title). I'm a mortgage professional, so that's why I know how to do this and am asking. Maybe you are a landlord and want to sell one of your properties, or just need to rent out your home and can sell it later. Anyways, serious offers only, I'll provide my personal info for credit check through an attorney of your choosing, or other professional who can write contract (real estate agent). Not a joke-just a desperate buyer who can't afford damn down payment banks want, tired of flushing my money in toilet with rent. Hope to hear from someone soon. Thank you.

Seller financing used to be more common than it is today, and it was a way to help buyers like this one prepare to buy a home and for sellers to sell quickly and easily for more money.

Rents are going up in Seattle, and tenant/buyers like this one are tired of wasting their precious resources on renting. Seattle is a great appreciation market, and housing prices have appreciated rapidly in this city since 2008. Now prices to purchase even modest homes outstrip most people's ability to purchase a home, even a small one.

I have no idea whether this particular buyer was successful in his efforts to secure seller financing. I am always on the search for seller financing, both for myself and for my investor clients. Seller financing gives buyers the opportunity to get into a property at a reasonable fair market price with affordable monthly payments. 

For the seller, it means they can often negotiate a higher price, avoid many of the costs and hassles of listing with an agent on the NWMLS, have a larger pool of potential buyers, and ultimately make more money.

Seller financing, rent to own, lease to own and other options are examples of owner financing, without going through an institutional lender.

If you are interested in learning more about seller financing, please message me privately at or leave a message on this blog post.

Happy Investing!


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