Damon Botticelli, Realtor - Las Vegas Real Estate (Silver State Realty & Investments)

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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Just had that happen with one of my clients.  They had a tax issue that needed several months to clear up and then they could purchase their new construction home.  The problem is that these companies buy the property, lease it for 1-6 months and then sell it for a 5% minimum upcharge.  Business-savvy?  Maybe but, what our issue was that the home didn't appraise a couple of months later at the 5% increase.  

On the flip-side, you can only imagine that re-sellers are not going to get full price for their sale to one of these companies.  The companies are going to hit them with low-ball Offers.  

So, I can't recommend them as I don't know anyone who has had a glowing experience with them!

Sep 01, 2016 06:06 AM
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Damon,

Debe Maxwell illustrated the problem beautifully.  I would not do that!

Sep 01, 2016 08:43 AM
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I haven't and don't know anyone who has. I would be pretty leery myself about the risk

Sep 01, 2016 08:14 AM
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Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

No, and I wonder never suggest a buyer use one. Any buyer considering using one should consult an attorney.

Sep 01, 2016 07:32 AM
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Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

No, I did not use them or did any lease back. It is not popular in my hood. 

Sep 01, 2016 07:23 AM
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Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

Nope have no idea who they are. 

Sep 01, 2016 07:19 AM
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Never have and never will.

Sep 01, 2016 07:07 AM
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Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Most of them border on illegal at least here in Pennsylvania 

Sep 01, 2016 06:33 AM
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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

No experience with anything like this. 

Sep 01, 2016 09:27 PM
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Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I have a client I sell properties to, that does this very thing. It is a numbers game and if they buy right they come out on the good side. I know they aim for a $40,000 spread from what they pay and what the selling price is on lease to own.

Sep 01, 2016 01:13 PM
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Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Yes, I have used them successfully for clients.  Don't ever use a company that doesn't give a 2-year lease/option, with no penalty for early closing.

Sep 01, 2016 09:50 AM
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Melissa Jackson
Century 21 Alliance Properties - Azle, TX
Helping You Make The Right Move

I have worked with one recently.  For some clients it's a win - win.  They can lease (in TX) up to 3 years at a predetermined price to purchase. Yes, it will cost them more money, but rent is also  high.  

When the client decides to purchase they already know the price and can set themselves up.  This is good if it's the only way for them to get in a neighborhood /school area they desire.

 If they choose to move they can without ruining their credit. As long as they keep within the guidelines of lease.  

When they get ready to purchase the home if the values are down this will cause an issue for the buyer.  The need to be educated. 

I could go on.. There are good points & bad points.

Sep 02, 2016 03:31 PM
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Richard Weeks
Dallas, TX
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Sep 01, 2016 11:31 PM
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Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

I have not.  Debe Maxwell brings up a very good point.  

Sep 01, 2016 11:27 PM
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Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Nope and know of no one either

Sep 01, 2016 11:21 PM
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Damon Botticelli - nothing of that sort, yet!

Sep 01, 2016 04:12 PM
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Never, not a good deal for my clients.

Sep 01, 2016 01:56 PM
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC
  • no - I never have either
Sep 01, 2016 12:58 PM
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Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Not popular there. No sucker will sign up as sellers they expect steep increase further....

Sep 01, 2016 09:33 AM
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John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Damon Botticelli I have not, but they contacted me about the service.

I will not recommend the rent to own service to any client.

Sep 01, 2016 08:48 AM
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Never seen one of those.

Sep 04, 2016 10:53 AM
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

No, I steer clear of rent-to-own.  They aren't popular out here either.

Sep 03, 2016 04:16 AM
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Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

No, have not. Sounds risky; use a reputable attorney.

Sep 02, 2016 03:35 AM
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Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

NO.... and I know of no companies that offer that.... 

Sep 02, 2016 01:39 AM
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

No, I never have.

Sep 02, 2016 12:48 AM
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

No experience with them, but suspect they buy at a discount, sell at a premium, and charge above market rent!

Sep 02, 2016 12:43 AM
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Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

No and never will.

Sep 02, 2016 12:06 AM
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Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

It is a great tool for buyer and seller when done right.

Sep 01, 2016 11:54 PM
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Jessie Cochran
Counts Real Estate Group, Inc. - Panama City, FL
Panama City Realty Group

I've not seen these companies or heard of them

Sep 01, 2016 11:40 PM
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Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

nope

Sep 01, 2016 10:55 PM
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Never a legit one, but plenty of scams

Sep 01, 2016 10:46 PM
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

no

Sep 01, 2016 09:25 PM
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I do not use them.

Sep 01, 2016 08:06 PM
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FN LN
Toronto, ON

No.

Sep 01, 2016 05:05 PM
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Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Sounds like a risky business model, most rent to own candidates fail to follow through and eventually leave what is left of the home to the previous owner who really does not want it back.

Sep 01, 2016 12:42 PM
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Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

I have never heard of this type of company

Sep 01, 2016 12:29 PM
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Carol Wilson
Your $imple Home - Toronto, ON

I am a stager, not a Realtor, so have no opinion on the question, but it looks like a very large majority do not consider it a viable approach.  This is worthy of careful attention.  You might wish to print out all these comments and provide them to the prospect you mentioned, so they can see the honest opinions of those in the business.  It will help them make their own choice, instead of blaming you later for giving them "bad advice" (in case your recommendation doesn't work out well).

Sep 01, 2016 11:04 AM