Rent To Own... A LAST Resort
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- Опубліковано 10 лют 2021
- Was this video boring in any way? Too long? Leave me some feedback down below! This is a topic I've been wanting to dive into for a while now. Rent to own can be a quick way to get your dream house project started, but there's some alternatives to consider as well. Hope you enjoyed the video!
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Good info. Thanks for sharing.
Just like buying a housr with a mortgage. You end up paying 250k on a 90k home...
As someone has already mentioned, the swing rate process of a mortgage (96% interest 4% Principal in the first year to 4% Interest 96% Principal in the last year) is going to cost you a lot more money than buying a home with cash. If you don't have the money for a full cash purchase, you must pay for the benefit of buying a home with someone else's money. And if you look at dollar to dollar analysis, the rent-to-own lending system that most shed companies offer, is actually a better deal than a traditional bank or lender is giving someone with a 30 year mortgage. It may seem like a lot, and IT IS, but you are using someone else's money and you SHOULD pay them for that service. It might sound like I think what you shared is irrelevant, but that's not true. This is good information, and I'm glad you made this video. The information is not earth-shattering for anyone who has ever owned a home, but if no one has taken the time to sit down with a young person to explain how lending works, a video like this is an eye-opener and super helpful.
Thanks for the comment, well said!
Great video you answered alot of my questions
great advice - gonna show this video to my 21 yr old - thank you
Glad it was helpful!
Awesome information 👏. I'll keep this in mind. Thank you and I 💗 your homeshed.
Thank you, and thanks for watching!
Something else to consider as well, if you do rent to own, always go with the shortest term you can. You'll save quite a bit and the payments aren't that much more a month, relatively speaking.
For sure! Thanks for adding that
What you've described sounds like owner financing- with a large interest rate for them. Rent to own, as I understand, is deposit down, rent for a year, then go into a standard mortgage through a closing therefore paying "landlord" full sum. Giving you the deed.
Yeah the interest is really ridiculous. Always good to have a plan to get out of it sooner rather than later. Thanks for watching!
Interesting!!
Buddy what's your thoughts on converting a steel metal garage free delivery and setup?
Let's say 24x36 for $10,000 vs shed cabin 16x40 for $15,000....will I end up paying a lot more for framing and lumber since the metal shed garage doesn't come framed?
I wouldn't think you'd be paying any more, it's probably similar in price if not a little cheaper. People do what you're talking about all the time. Only downside I can think of is having to deal with cutting metal for your windows etc. Otherwise, if it's on a slab, sounds like a solid plan!
Which state
We're in Texas
I’ve considered a shed but the APR is super high, so I’m going with shipping containers.
Yeah I mean the shed thing is doable, but definitely need to have a plan to pay off faster. Good luck with the shipping containers!