Key Questions to ask before you do a Rent To Own Deal.

Key Questions to ask before you do a Rent To Own Deal. 

One of the big issues in the Rent to Own industry is the fact that there is no professional oversight, so pretty much anyone can claim to be a Rent to Own expert and put together their own deals. A quick look at online ads will reveal a whole bunch of people offering them. They range from investors to real estate professionals to companies from other cities. So how can potential Buyers know what’s real or even know where to begin looking at the possibilities? 

The purpose of this Freedom Rent to Own blog post is to inform people considering Rent to Own deals with key questions that they should be asking before they consider signing any documents or handing over money. 

Question #1: Who are these Rent to Own people and what is their reputation? 

How do you know that they are credible and legitimate? The first step in evaluating a Rent to Own deal is to look very carefully at the company and the people involved. Find out who owns the company and then do a Google search on them. Here are a few things to think about when looking into their background: 

1. What qualifications do they have? Do they have the training and experience to know what they are doing? 

2. How long have they been involved in Rent to Own? Real estate investing of any kind requires expertise, knowledge and preferably experience. Inexperience can be very costly. 

3. Which professional organizations do they belong to? If they’re running a professional Rent to Own company then they will certainly belong to professional trade associations. Find out which and do a search within those organizations to see if there have been any issues. 

4. Have they written anything substantive about Rent to Own via a blog or other articles? One way to evaluate the knowledge of a professional is to see what they’ve written on the subject. Ask the owner(s) for links to posts or articles and see what you think of their positions and the information they have shared. 

5. What is their track record? Can you find any areas of concern? 

6. Have any of their deals not worked out and if so, why? Ask them about their performance record. There are always challenges in real estate investing. If someone tells you that they have never had any issues either they haven’t been at it very long or there is a red-flag. Find out what the challenges have been and how they have resolved the problems. Anyone can look good when things are going well. It’s the challenges that tend to expose people’s true nature. 

7. Have they published a list of testimonials from people and professionals who have used their services? If all they have is a list of testimonials from “clients” with only first names or initials provided, then you don’t have much to go on. It’s better if they can give you professionals to whom you can speak. 

By the end of the evaluation process, you should have a clear picture of where you are today, what you need to do in the next two to three years and what it will take at the end in order to be mortgage ready. If you do not know the answers to any of the above questions then ask for more information. Ensure that you have a plan. You are responsible for executing the plan but you should have clear guidance from the Rent to Own company in order to increase your chances of success! 

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