The two questions that I am asked more than any others are "HOW DOES THE RENT TO OWN CONTRACT WORK AND WHY CAN'T I JUST BUY THE PROPERTY".
My answer is a long one, so I have decided to add this page to answer those questions. The second part of the question is the easiest to answer so I will answer that first.
You can buy the property outright if you have the cash or at least 30% down. With that amount down, I could be your lender without credit, job, or income verification. If I was your lender with 30% down you could set your payment on any amortization schedule that would fit your budget. You would be required to pay 9% interest on the unpaid monthly balance or you could get a slightly lower interest rate if you allow me to qualify you based on your income and credit history. But with 30% down, good credit, a net worth in excess of $1,000,000.00, funds in your savings account that you could offer as collateral against the sale price of the property you wish to purchase, you may be able to find a conventional lender that would offer you a much better interest rate than I could as a private lender. In these times it is very difficult if not impossible to find a lender who will loan money on unimproved property. But if you want to own a beautiful parcel of land in recreation heaven with a navigable fishing creek running through the middle of the property, there is a very simple way to accomplish your goal of property ownership. Buy it on a "RENT to OWN" contract. I have been selling my property using the Rent to Own contract for more than 30 years. I have even delivered deeds, after 20 years of payments, as those properties are paid off. As long as you can afford the monthly Rent to Own payment you will be able to afford the ownership payment. IT WILL BE EXACTLY THE SAME!!!!
All twelve of the free and clear properties I own are eligible for a Rent to Own contract without the requirement of a balloon payment. Some of the 12 properties are already under contract. If you go to the PROJECTS page you can scroll down to a list of the properties that are still available. The prices are listed for the sold properties and the ones that are still for sale. If you buy one of my free & clear properties and want me to be your lender then there are a few terms and conditions that will be part of the contract. After the sale closes, any amount you pay more than the required monthly payment will go directly to reduce your principle balance. If you sell the property you must pay off the then owing principle balance. However, I may consider allowing the note secured by a deed of trust to be assumed by your purchaser, IF THEY QUALIFY. You will qualify by proving to me over a two year period that you can make the monthly payment on time. I have no way to know if the person you sell too can perform as you will have shown me that you have done. So I must qualify that person if they want to assume your loan. Under the Rent to Own contract your monthly rent payment will be the same as your ownership payment. Depending on the sale price it will take approximately 2 years to accumulate the required 5% or $5,000.00(which ever is greater) down payment. After the Rent to Own agreement is signed, you will make your monthly rent payment to my accountant. She will deposit your payment into my business account, then she will transfer $200.00 of you rent payment into a down payment account. When the down payment account has accumulated 5% or $5,000.00 which ever is greater, of the sale price of the property you are purchasing, an escrow account will be opened at a Title Company and the down payment funds will be transferred into their trust account. Out of the down payment the escrow agent will pay all the closing costs, both mine and yours. Any money in excess of the closing costs will be disbursed to me soon after the transaction is recorded.
You will be purchasing the property on a note secured by a deed of trust payable at your monthly payment amount, based on the sale price, or more, including interest at 9% per annum computed on the unpaid monthly balance. Your first payment will be due 30 days from date of closing. There will be a 10% late fee penalty on any payment received 10 days past the due date. The note will be all due and payable upon the sale of the property unless I APPROVE AN ASSUMPTION. If you default I will charge the largest legally allowable interest rate on the unpaid balance until you either cure the default or I foreclose on the property. You may at this point ask what is a deed of trust? A deed of trust is a transfer of interest in land by a borrower, you, to a lender, me, to secure the payment of your debt. A deed of trust is an arrangement among three parties, the borrower, the lender, and an impartial trustee. In exchange for a loan of money from the lender, the borrower places legal title to real property in the hands of the trustee who holds it for the benefit of the lender, named in the deed as the beneficiary. The borrower retains equitable title to, and possession of, the property. The trustee will deliver a deed to the borrower when the note on the property is paid in full.
You may want to ask yourself before you enter into a long term commitment if you are making a good investment if you buy this property? I am not an investment counselor, nor am I a prophet, able to foresee the future. But I do know my most important criteria during my 50 year of purchasing Real Estate has been LOCATION, LOCATION, LOCATION, LOCATION. What good does it do you to own a property in the middle of the Sahara Desert or on top of Mt. Everest. How often are you going to enjoy the use of the property?
Seventy five percent of the property I own is located in an area I call recreation heaven, the Grapeview area of Mason County Washington. It is half way between Shelton, the County Seat, and Belfair, which serves as the commercial center of North Mason County. Shelton is 15 minutes SW of Grapeview and Belfair is 15 minute NE of Grapeview. Shelton is the largest and only incorporated city in Mason County. Shelton identifies itself as the Christmas Tree Capital of the world and is located on the westernmost point of Puget Sound. Belfair is located on an isthmus connecting the Kitsap and Olympic Peninsula, built on the Union River, headwaters of Hood Canal, which is a branch of Puget Sound. Grapeview is less than 45 minutes from either Olympia, Washington's State Capital, or Bremerton, the largest city on the Kitsap Peninsula and home to the Puget Sound Naval Shipyard. In less than an hour you can take a leisurely ferry ride to Seattle from Bremerton. Seattle International airport is less than one & a half hours from Grapeview by car.
Why do I call it recreation heaven? Recreation is defined as, refreshment of one's mind, body & spirit, through activities that amuses or stimulates; Heaven is defined as a condition or place of great happiness, delight, or pleasure. In Grapeview both can be found. Humans need exercise to stay healthy. I prefer to have fun when I get my exercise. So I walk along the banks of Deer Creek with my fishing pole, or I jump in and swim upstream against a very slight current while I view another world through my swimming goggles. Or if I want to get my upper body exercise but stay dry, I row upstream in my canoe or kayak while I observe the beautiful, peaceful, silent forest on the East bank or the canary glass waving in the breeze on the West bank of Deer Creek. At these precious times, my mind lifts my spirit out of my body and transports it to the Alaskan wilderness where I feel like I am the last person on Earth.
My mind just pulled me back into my body and now I find myself playing golf on the Gold Mountain Golf Course, ranked in the top 100 list of public courses. Gold Mountain, McCormick Woods, Alderbrook, Trophy Lake, Horseshoe Lake and Lakeland Village are all nearby public golf courses less than half an hour from the property in Grapeview. I have played all these courses and can say from personal experience that all these courses are of high quality and very enjoyable to play. If you have a boat, the variety of fresh & salt bodies of water around Grapeview are world class. Flanked on the North by Hood Canal and on the South by Puget Sound you are less then 10 minute from beginning your trip around the world. Launch your boat at Twanoh State Park on Hood Canal or at Fair Harbor Marina on South Puget Sound and head for parts unknown. I have taken my 37' fishing trawler from South Puget Sound through the Strait of Juan de Fuca into the Pacific Ocean for some of the best fishing I have ever experienced. If you prefer fresh water fishing for trout and large mouthed bass head for Spencer, Phillips, Mason Lake or Benson Lake, they are all within a few miles of the property in Grapeview and all four have public boat ramps from which to launch your boat. Benson Lake does not allow gas engine motor boats but electric motors are allowed. If fishing is not your bag, but you do enjoy water sports then head for one of the other three lakes. Mason Lake has always been known for its power boats, jet skis and water skiing. Spencer lake and Phillips Lake also allow motor boats and water sports.
The last thing in the world I would ever do is try to sell you something. I do not like people trying to sell me something before I have decided to buy. If you want to own a piece of property in recreation heaven don't buy it, rent it first and see if you want to keep it for your future enjoyment. If you decide later that you want to own the property then you will at least have accumulated $200.00 per month that can be used toward your down payment. If you change your mine and decide not to own the property then you are only out the total monthly rent that you have paid.
SO WHAT ARE YOU WAITING FOR??????????????????????