The Rent-To-Own Missing LinkBy
I just got off the phone with Michael Shin, founder of National Home Buyers Assistance. He's started a unique business that offers a way for people with really bad credit to buy a home. One of Shin's local franchisees will acquire the house for the would-be buyer and rent it to them with an option to purchase. Hopefully at the end of a year the renter's credit has improved enough that he can purchase the house from the franchisee, at a mark-up of 10-12%. The rents work out to be a little more than market rents too, but, to give the tenant some incentive at the end, the franchisee rebates half of the rent back--if they buy the house--to help with closing costs and a downpayment. Shin says he's out to help folks buy homes in what's become a pricey environment. "There’s nobody like us," he says. "We are a missing link in the real estate industry."
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