Frequently Asked General Questions What is the difference between Rent To Own, Lease Option, Lease Purchase, Rent to Buy, Owner Financing, and Land Contract? Why do Buyers choose to Rent To Own versus other methods of purchasing a home? What is the purpose of the MyHelpingHandUp.com advertising feature?  Who are the Buyers on RentToOwn.com? How many Buyers and Sellers of Rent To Own homes are there? Is the Rent To Own concept new? Please provide the details of a sample Rent To Own transaction. What is option consideration? What is a rent credit? What formats are there for Rent To Own agreements? Who does the maintenance and repairs on the Rent To Own, the Seller or Buyer? Who pays the taxes and any insurance on the Rent To Own? Are Rent To Own transactions only worthwhile during a slow real estate market? Is MyHelpingHandUp.com just another Real Estate listing site?

Frequently Asked Questions by Buyers If I'm a Buyer, how much does your website cost to use? What type of potential Buyers choose the Rent To Own method? How can I ensure that my credit improves enough to obtain a mortgage by the time my Rent To Own agreement concludes? Where do Sellers come up with the rent figure? What professional assistance should I seek while trying to pursue a Rent To Own; do I need a real estate agent or an attorney? What happens if I sign an agreement for a Rent To Own house and I change my mind? What if I am a potential Buyer with less than ideal credit? Do I get my down payment returned to me if I do not take the purchase option at the end of the Rent To Own Agreement? Do I get my rent credit paid out to me if I do not take the purchase option at the end of the Rent To Own Agreement? What are the major risks to Buyers? Who should NOT Rent To Own?

Frequently Asked Questions by Sellers Why do Sellers choose Rent To Own versus other methods of purchasing a home? How long does my Rent To Own advertisement remain on your website?  What provinces/states do you offer the most exposure in? Do you break down provinces/states into the large metropolitan areas within each? How do I get paid when I sell a Rent To Own? What are the major risks to Sellers?

General   What is the difference between Rent To Own, Lease Option, Lease Purchase, Rent to Buy, Owner Financing, and Land Contract?  (Back to Top)   The difference is in the small details within the contracts. Rent To Own, Lease Option, Lease Purchase and Rent to Buy all refer to what is essentially the same transaction, the Rent To Own. A Rent To Own agreement between a Buyer and a Seller is a contract that allows a potential Buyer to rent a home and have an option to purchase the home from the owner at the end of a set lease term. The main components of a Rent To Own transaction are the term of lease, purchase price, down payment required, and rent credit. Owner Financing and Land Contract agreements are typically characteristic of the Seller who is financing all or part of the purchase price for the buyer. Instead of receiving cash upfront, the Seller will act as the lender and receives monthly rent payments with the remaining payment due (the balloon payment) at the end of the agreement. Again, these transactions are very similar to a Rent To Own.  Why do Buyers choose to Rent To Own versus other methods of purchasing a home?  (Back to Top)   Opportunity to Own Your Dream Home: You have the ability to own your own home as you build up equity and fix any potential credit problems. Turn Your Rent Into An Investment: Both a portion of your monthly rent and down payment at closing will be credited to your purchase price. Profit from Appreciation: In a Rent To Own agreement the purchase price is fixed, giving you the opportunity to make equity gains in the midst of growing real estate markets. Credit Improvement Specialists Available: Beginning with iBuy2Rent.com specialists, there are credit experts that can help you build your credit to the point of making a purchase at the end of your lease. Prepare for Home Ownership: Take your time and learn how to properly care for a house as you move towards your goal of home ownership. Upfront Timing: The timing for moving into a Rent to Own home can be much shorter than purchasing a home should you choose to exercise your option. Maintain Your Flexibility: Rent To Own gives you the flexibility to walk away from the property at the end of your lease term, should you decide you don’t want to make the purchase. Potential to Own With Any Credit: Whether you’ve had late payments, a bankruptcy or simply haven’t had enough time to build up your credit, a Rent To Own home may enable you to build equity and repair credit while renting to own your home.   What is the purpose of the MyHelpingHandUp.com advertising feature?   (Back to Top)   Our sole focus at iBuy2Rent.com is to provide you with expert assistance in finding a solution to pain associated with a home that is not selling, while providing resources which will also help make your Rent To Own experience a success. Users have the opportunity to fulfill the dream of buying a home using our Rent To Own resources.   Who are the Buyers on RentToOwnMagic.com?  (Back to Top)   Anyone! To put this answer in perspective, we have Rent To Own homes advertised on iBuy2rent.com that could range from under $100,000 to over $2,000,000!   How many Buyers and Sellers of Rent To Own homes are there?  (Back to Top)   With the recent credit crunch that has taken place in the worldwide economy, Rent To Own transactions have gained a great deal of popularity. However, Buyers and Sellers have been doing various structures of Rent To Own transactions (Rent To Own, lease option, lease purchase, rent to buy, owner financing, and land contract) for decades. For the first time in history, the spotlight is on Rent To Own transactions and the number of Buyers and Sellers will continue to grow rapidly as consumers become more aware of the benefits of a Rent To Own.   Is the Rent To Own concept new?  (Back to Top)   No. It has been existent for decades in the various formats we just mentioned: Rent To Own, lease option, lease purchase, rent to buy, owner financing, and land contract.   Please provide the details of a sample Rent To Own transaction.  (Back to Top)   Say for example, you’re interested in a Rent To Own that is available from us at iBuy2Rent.com for $100,000. We as the Seller are asking for a 5% down payment of $5,000, asking for monthly rent of $1,000 and offering monthly rent credit of $100. Additionally, the Seller’s terms call for a two year Rent To Own agreement. So as the Buyer, you pay your $5,000 down payment at lease signing and make all of your monthly payments on time. Anytime within your 24-Month agreement, you are entitled to purchase the home at the fixed asking price of $100,000 minus what you accumulated in equity. The equity in this example is the $5,000 down payment and $2,400 earned in rent credit (24 months x $100 per month rent credit = $2,400). In this example, at the end of your lease, your remaining balance of the Rent To Own home would be $92,600 should you wish to exercise the purchase option. It is the Buyer's decision to (1) purchase the home at the completion of 24 months or (2) walk away and not pay any additional money to the Seller.   What is option consideration?  (Back to Top)   An “option consideration” is generally another name for a down payment.   What is a rent credit?  (Back to Top)   A “rent credit” is the portion of the monthly rent that is credited towards the final payment due at the end of the lease on a Rent To Own home.   What formats are there for Rent To Own agreements?  (Back to Top)   There should be two portions of a Rent To Own agreement. The first part is a standard Lease that spells out the monthly rent payment, and other standard lease terms. The second part is the Purchase Option, which binds the Seller to sell the property to the Buyer at the agreed upon price provided the Buyer meets the agreed upon conditions (in most cases the only condition is obtaining a mortgage). The Seller must sell if the Buyer decides they want to make a purchase. However, one of the benefits of a Rent To Own transaction, is that the Buyer is not forced to make the purchase if they decide not to. This is the most common way to form a Rent To Own agreement.   Who does the maintenance and repairs on the Rent To Own, the Seller or Buyer?  (Back to Top)   This is a negotiation point prior to signing the Rent To Own agreement or contract and it is determined by both the Buyer and Seller.   Who pays the taxes and any insurance on the Rent To Own?  (Back to Top)   Taxes and insurance are normally paid by the Seller of a Rent To Own.   Are Rent To Own transactions only worthwhile during a slow real estate market?   (Back to Top)   Historical belief was that Rent To Own transactions were only done during a slow market. In fact, nothing could be further from the truth! Rent To Own transactions are becoming more popular in booming and busting real estate markets on a daily basis. Consumers are beginning to educate themselves on all of the many Benefits of a Rent To Own. We at iBuy2Rent.com believe that there is always going to be a need for the Rent To Own transaction, especially given the incredible amount of benefits to both Buyers AND Sellers!   Is iBuy2Rent.com just another Real Estate listing site?  (Back to Top)   Definitely not.  First off, iBuy2rent.com is not a listing site.  We are just getting started and are growing exponentially. We appreciate having you as a customer and will continue to provide a Rent To Own marketplace.

Buyers If I'm a Buyer, how much does your website cost to use?  (Back to Top) Nothing! Our website is completely free of charge to all potential Buyers of a Rent To Own. Please Sign Up today!   What type of potential Buyers choose the Rent To Own method?  (Back to Top)   Potential Buyers have historically included the following: People that are unsure about where they want to live but want to build equity People that see a great opportunity on a home that is not for sale People that are going through divorce and may be relocating People with impaired credit People who are tired of renting and want to take positive steps towards home ownership Real estate investors How can I ensure that my credit improves enough to obtain a mortgage by the time my Rent To Own agreement concludes?  (Back to Top)   This depends on your particular situation. Many Buyers simply need to establish credit in the first place. Some Buyers may have judgments, collections, bankruptcies or foreclosures in their credit background; these will take more time to overcome. A professional and experienced mortgage provider should be able to tell you what you need to do to be able to qualify for a loan. Many Buyers that have credit blemishes join credit repair programs. Most importantly, as a potential homebuyer through iBuy2Rent.com or some other method, you have to take the responsibility of improving your credit and paying down outstanding debts to eventually begin to save money.   Where do Sellers come up with the rent figure?  (Back to Top)   Some Sellers will ask for their exact mortgage payment every month from you in the form of rent and others will simply choose the market rate for their Rent To Own. Some Sellers realize all of the potential for Buyers to benefit from a fixed purchase price (in growing real estate markets) and will take that into account when creating the figure.   What professional assistance should I seek while trying to pursue a Rent To Own; do I need a real estate agent or an attorney?  (Back to Top)   The traditional Rent To Own transaction does not require anyone other than Buyer and Seller to complete a transaction, however, the iBuy2Rent.com team highly recommends that both the Seller and Buyer both attain the services of a real estate attorney to protect each participant’s interests. There are certain real estate lawyers and even real estate agents that specialize in these types of transactions and have extensive experience in reviewing Rent To Own agreements and legal documents to facilitate deals of such magnitude. Sellers providing Rent To Own owner assistance may want to seek other professionals on behalf of the potential Buyer.   What happens if I sign an agreement for a Rent To Own house and I change my mind?  (Back to Top)   This is one of the many benefits of pursuing a Rent To Own home. As a potential Buyer, you are not obligated to purchase the home outright at the end of the lease term. Please remember that down payments are generally non-refundable.   What if I am a potential Buyer with less than ideal credit?  (Back to Top)   Fortunately for potential Buyers, Rent To Own is conveniently designed to take place over a longer period of time than a standard home purchase. This time can be utilized to enable the credit improvement process and save money needed to complete the sale.   Do I get my down payment returned to me if I do not take the purchase option at the end of the Rent To Own Agreement?  (Back to Top)   In most cases the answer is “No.” The terms of the contract between the Seller and Buyer will differ in every Rent To Own transaction, but the majority of Seller’s will request a non-refundable down payment at the onset of the agreement. Please take this into consideration when looking for a home.   Do I get my rent credit paid out to me if I do not take the purchase option at the end of the Rent To Own Agreement?  (Back to Top)   In most cases the answer is “No.” The rent credit does not represent actual cash, but rather it is a form of discount that is provided to you, the Buyer, for agreeing to purchase the home at the end of the Rent To Own Agreement.   What are the major risks to Buyers?  (Back to Top)   The number one risk for a Potential Buyer is the potential failure to abide by the Rent To Own contract put into place. In most cases, if you as a Buyer break the contract in any way, the Seller is no longer obligated to sell you the Rent To Own. In these cases, as unfortunate as they may be, the Buyer will almost always lose all money provided as a down payment and forego any rent credit earned. Even if you as a Buyer abide by all of the terms and conditions of the lease, there is still a chance that you won’t be approved or can’t quality for a mortgage at the end of the lease. This can be for many reasons such as poor credit or lack of documentable income. Buyers must be aware that they should choose a lease length that meets their own time horizon for improving their credit if it needs to be improved. Another trap that Buyers fall into is that they don’t fully read and understand the legal language outlined in their Rent To Own agreement. In all of these scenarios, a potential Buyer would have their Rent To Own dream turned into a nightmare. You must educate yourself by understanding your credit and how to improve it, determine your financial ability and do not over-extend yourself, understand what is required to be approved for a mortgage, understand your legal documentation or hire a lawyer to help you understand it, and most importantly of all, treat the Rent To Own transaction with the same importance that you would a home purchase. If you do all of these things, you stand a better chance of completing a successful Rent To Own purchase.   Who should NOT Rent To Own?  (Back to Top)   You should not Rent To Own if you don’t feel that the length of a potential lease term will give you enough time to build your credit to the point where you can obtain mortgage or other financing to purchase the home. You should also not Rent To Own if you are rushing into the process. We at iRentToOwn.com recommend you pursue a Rent To Own agreement in the same manner you would if purchasing a Rent To Own. You should also avoid over extending yourself and avoid making decisions based upon future earnings.

Sellers  Why do Sellers choose Rent To Own versus other methods of selling a home?   (Back to Top)   Guaranteed Revenue: If your buyer should fail to procure a mortgage loan, or waive the purchase option at the maturity of the lease term, You retain the deposit, rent, an all accumulated equity. Equity Value Accretion: As a Seller, your tenant will build your equity for you over the course of the lease. Purchase Price Lock: The purchase price is negotiated by Buyer and Seller and confirmed prior to signing the lease; thus allowing Sellers to account for anticipated future real estate market fluctuations. Tax Benefits: Avoid short-term capital gains with a “fix and flip” strategy by renting to own the property to a tenant, just be sure the lease extends more than a year from your date of purchase. Responsible Renters: Your tenant has a large personal equity stake in the home you are selling, and as a result will treat your property just like his own. Instant Communication Process: Our communication process enables us to easily identify and contact the potential Buyers interested in your Rent To Own home. No Traditional Real Estate Transaction Fees: Avoid all real estate commissions by simply contracting your home with us and let a qualified buyer find you. No Time Gap Between Renters: Find the perfect tenant with the option to choose from a pool of qualified buyers months in advance.   How long does my Rent To Own home listing remain on your website?   (Back to Top)   Your Rent To Own home listing will remain on our site until sold or for the term of the Rent To Own contract, whichever comes first. One of the many benefits of using iBuy2Rent.com is that you can easily market your home even while you currently have tenants in the home in anticipation of their lease end. This helps reduce the likelihood of down time between tenants.   What provinces/states do you offer the most exposure in?   (Back to Top)   We have Buyers representing all Provinces and States, but focus on BC, Canada.   Do you break down provinces/states into the large metropolitan areas within each state? (Back to Top)   We do not currently narrow down markets into cities and provinces/states.   How do I get paid when I sell a Rent To Own?   (Back to Top)   As a Seller, you may receive a non-refundable down payment at the Rent To Own contract signing.  Our fees are paid by the Buyer as an assignment fee.  You’ll also receive monthly rent payments from the potential Buyer. At the end of the Rent To Own contract, you’ll receive the remaining balance of the purchase price, less the down payment and rent credits earned and any closing costs and possible RE agent fees.   What are the major risks to Sellers?   (Back to Top)   Sellers face all of the standard risks when renting their Rent To Own home to a tenant: wear and tear, potential missed payments, etc. However, the Buyer would presumably take better care of the home because it will one day be their home. The Seller may be stuck with any necessary repairs, even if the buyer caused them, unless your contract makes the Buyer responsible. As always, repossession can be difficult if the buyer defaults on payments. Typically, the Seller remains responsible for real estate tax and property insurance. Another risk that face Sellers is that the negotiated purchase price of the home may be under market value by the end of the Rent To Own contract. With the dozens of benefits that a Rent To Own sale provides, these risks are heavily diluted, but it is always important to be prepared for what can happen. The most important thing to remember is that all language and terms of the Rent To Own should be detailed in the Rent To Own agreement and completely understood prior to final signing.