All Topics / Help Needed! / Rent to own/ vendour finacing

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  • Profile photo of buckey89buckey89
    Join Date: 2012
    Post Count: 4

    hi looking for information on rent to own homes or vendouring financing? trying to get a foot in the property market and came across this looking for any insight any one could give me or direction as wouldn't be living in the house it would become and investment property.. has any one done this type of purchase or no of any systems that have worked well in the area

    Profile photo of rustyrustyrustyrusty
    Join Date: 2013
    Post Count: 5

    It could be a good way to buy and sell.

    There seems 2 main ways that is a rent to buy which is you have a normal rental agreement and a rental amount per week and then you have a agreement which is an option to buy this has a mature date maybe 3 years the option amount and the deposit count toward your deposit when you re finance in 3 years i think your interest as having an option to buy is registered with the title you can take up this option at any time before the 3 years is up.

    The other way is to get Vender finance where you have an installment contract which is relisted against the title and the total amount and the deposit is counted against the mortgage  the rate of interest and the deposit and even the purchase price are all negotiated before hand. I think the key to it is where will you be in 3 years how can you be sure that the property will be worth more in 3 years so you can refinance.

    The answer is you will have the initial deposit plus the bit you have been paying extra above the rent component or above the interest component in a vender loan.

    Plus and this is the big plus if you can add value to the property if you can paint improve the kitchen the bathroom the garden the shed the fencing any thing that can make the property look better and appeal to a buyer to the extent to be worth more.

    Removal of a few trees and clean up the yard and paint and render the outside of a dated old house can add a lot of value.

    Keep that in mind when you look around at whats on offer.

    There is some good web sites explaining vender finance and rent to buy but the key to your success will be what its worth in 3 years.

    good hunting..

    Profile photo of Paul DobsonPaul Dobson
    Join Date: 2003
    Post Count: 1,196

    Hi buck

    A couple of goods spots to look for vendor financed properties are:  and

    It's also worth looking in the property classifieds in your local community newspaper.

    However before jumping in to vendor finance (VF), I'd suggest you do as much research as possible and possibly buy some basis VF education.  We have been working in the residential real estate vendor finance market place since 2003 and you may be interested in a blog post I've just posted called '10 Mistakes to Avoid with Vendor Finance'. It's at:

    The Vendor Finance Association is a great place to meet vendor financiers. Dates and details of meetings are available at:

    I believe it's important to build a good foundation to your vendor finance knowledge and there are numerous educators to choose from. Some that spring to mind are:

    Sean Summerville –

    Rick Otton –

    Dave & Julie Siacci –…-finance-1997/

    Paul Zalitis –…Investing.html

    It is worthwhile researching all these educators and choosing one that suits your style.

    Some other research locations are:…/lease-options…vendor-finance

    Cheers, Paul

    Paul Dobson | Vendor Finance Institute
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of mattstamattsta
    Join Date: 2011
    Post Count: 604

    It can be a good option. I have never done it myself and I am not that experience in it, but some of my friends did rent to own PI and were happy about it. The posts above are the great source of information and I am sure will help you out. Just do a research and you will see immediately if it is a good option for you or not. 

Viewing 4 posts - 1 through 4 (of 4 total)

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