Experience with rent-to-own companies like Hyperion and Mack? (tax lien, flat fee)

[Naples Bill]

I am a Realtor who just finished buying a home for Hyperion (Now home Partners of America)to rent to my client and I thing the process, while frustrating at times, ultimately worked great. While the tenant, who is not a party to the purchase is kept out of the purchase process, I was not and I was able to observe the fairness and efficiency of each step in the process and was highly impressed by it. Hyperion, being a quick cash buyer, was able to negotiate the price much better than my client would have been as a marginal financing buyer. In a year when my client is able to buy the house from Hyperion the price will be well under market due to the appreciation in the area running well above the 5% a year Hyperion is charging.
I thought that both the approval and the underwriting processes were both fair and transparent. Many posters complained that Hyperion is basing the rent using the estimated real estate taxes after the sale. While the tax increase can be substantial it is also very transparent an unavoidable. Hyperion has no choice but to include the expected tax it would have to pay in the rent calculation The tenants would face exactly the same tax increase if they bought the house outright and the taxes will most likely go up again when the tenant purchases the home from Hyperion.

[davef22]

Sounds like we have a lot of Hyperion employees over here saying that "we are a realtor and the process is spotless and honest". Seriously guys stop the non-sense of doing the pep-talk about a fraud company. There are a lot of genuine buyers around and please don't make an effort to con people.

[Jordankh]

Originally Posted by davef22

Sounds like we have a lot of Hyperion employees over here saying that "we are a realtor and the process is spotless and honest". Seriously guys stop the non-sense of doing the pep-talk about a fraud company. There are a lot of genuine buyers around and please don't make an effort to con people.

Excuse me, but do you have any legitimate proof or reason to believe that Hyperion is a "fraud company"?

I'm a Realtor in Colorado and I've closed several deals with Hyperion, which has meant a little over 2 million dollars in sales.

Every one of the people that I've helped have been grateful for the program and have had nothing but mostly positive things to say. There has definitely been annoying situations that have come up, but they're purchasing $100,000 - $500,000 houses to rent out to people, not signing them up with cell phone contracts, so there's bound to be issues from time to time.

Again, they're literally buying millions of dollars worth of properties off of the for sale market and renting them to people as a business model. They are not doing this for charity, its a business. It happens to help people in certain situations and it can also just be a nice alternative to traditional renting if your situation calls for it, but that doesnt mean its going to be as cheap as a good mortgage.

Most of my clients have all had short sales or recent bankruptcies, and needed to get into a home but up here in my market rental properties are not as easy to come by, especially if you have pets. So Hyperion worked out great. ( or Home Partners I should say, whatever)

Process usually takes 30-40 days and your in your new rental. Then after the first year you can move if you want to, there's no obligation to stay. You know all the rent rates and purchase option prices in the first place, so you also can check the transparency box.

The risk factor for Hyperion is also a huge point to take into account. They are risking hundreds of thousands of dollars worth of properties on people, who generally have poor credit for one reason or another, so in order to gain that kind of capital the returns must look good enough to get the outside investments in the first place for the program to even exist. Welcome to the world of investment economics.

Besides some of the comments on here saying its a fraud because they charge an application fee to run the background and credit checks (which reality check, most landlords do since it costs them money to run those them selves) I have not seen a single good argument for how the program is a scam.

And on a side note, before I started working with the company I did my homework, as anyone else interested in the program should (or those who want to post comments about it), and found out that the founder of the program is also the head of the Goldman Sachs Infrastructure Investment Group, so he has some credentials there. Not to mention if you have access to the MLS in your area (or you can just ask the real estate agent your working with to pull it up) its not very hard to see all the homes in your state that Hyperion has purchased, just as some more proof that they are a legitimate company.

So I ask again, how is this a 'scam'?

I hope this has helped clarify any confusion that is out there. If any would like to respond to this thread, I'll try answer any questions or concerns if you have any.

But if people would like to believe its a scam because they charge an application fee, then Ill just summarize my feelings on that with a quote: "if any man be ignorant, let him be ignorant."

*Just kidding, I love lively debates!

Merry Christmas!

(please forgive typos if any, ipads are not the greatest for this sort of thing)

[LizHarris]

Hi Jordankh,
Would love to have more input from you... could you give me a call? 480-313-3924

[LizHarris]

Bill, Would love to speak with you!

Originally Posted by Naples Bill

I am a Realtor who just finished buying a home for Hyperion (Now home Partners of America)to rent to my client and I thing the process, while frustrating at times, ultimately worked great. While the tenant, who is not a party to the purchase is kept out of the purchase process, I was not and I was able to observe the fairness and efficiency of each step in the process and was highly impressed by it. Hyperion, being a quick cash buyer, was able to negotiate the price much better than my client would have been as a marginal financing buyer. In a year when my client is able to buy the house from Hyperion the price will be well under market due to the appreciation in the area running well above the 5% a year Hyperion is charging.
I thought that both the approval and the underwriting processes were both fair and transparent. Many posters complained that Hyperion is basing the rent using the estimated real estate taxes after the sale. While the tax increase can be substantial it is also very transparent an unavoidable. Hyperion has no choice but to include the expected tax it would have to pay in the rent calculation The tenants would face exactly the same tax increase if they bought the house outright and the taxes will most likely go up again when the tenant purchases the home from Hyperion.

[Petpeepers]

We are moving to the Colorado area in a few months, just applied with Home Partners, if you could please email me back, would love to know more about the program etc.

[angkub]

We are renters with Home Partners of America (formerly Hyperion). So far, the process has been great. No, it is not a scam. You do have to pay $75 fee, for everyone that is over 18 that will live in the home. So $75 for 2 or 3 people is not bad considering the fee of $100 per person of these small apartment rentals that we have seen around here. This is an awesome company that helps people get back on track with their credit. Even if you have bankrupt and had a foreclosure, they will still be willing to rent to you. You get to go with your realtor to different homes that are on the market, pick one, then the realtor does the submitting of the home with negotiations etc. Took about 2 months tops to get everything done. This option is much better, bigger, and cheaper than living in a little overpriced box with no garage. The company has been awesome. They communicate with us via e-mail. So far, we are pleased with them. You do have the option to buy the home. It is not a rent to buy option.

[Ludachris]

What makes this so frustrating is that anyone who posted anything positive registered only to reply to this thread - which seems fishy. All those with concerns have posted elsewhere in these forums. That reeks of reputation monitoring by the marketing department for Hyperion/Home Partners of America. Tough to know who to listen to.

[Cinema]

Originally Posted by Ludachris

What makes this so frustrating is that anyone who posted anything positive registered only to reply to this thread - which seems fishy. All those with concerns have posted elsewhere in these forums. That reeks of reputation monitoring by the marketing department for Hyperion/Home Partners of America. Tough to know who to listen to.

I agree with you, I'm very weary of all these "realtors" and customers who have joined ONLY to reply. In addition, they all seem to be coming from Colorado, posting in the Illinois board. I get that they're doing a search, but they seem to be searching the entire U.S. I also don't feel comfortable when companies change names.

I stand by my original posts, this was not a good option for us and we didn't go into it blindly. We worked with a realtor but in the end even she didn't feel this was a good fit for us and had a few issues with the company. My best suggestion would be to see if these realtors are posting the same information on boards in multiple states. Then I would talk to several realtors in your area. Those who work with the program and those who don't but may have information.

In the end, listen to what your gut is telling you. I truly believe there are people who've had a positive experience but I also believe it depends on the location and market. I noticed they no longer are in the area where we were looking. Good luck.

[AMELIAAG]

I am in a situation where I thought that Home partners would be the best option for me. I have heard conflicting information from two different realtors. It is hard to know who to trust. My thought process is that it is $150 (for my husband and myself) to possibly move into and STAY in our dream home. I think we will try this program while I rebuild my credit from a short sale and low credit score. I will try to keep everyone posted.

AAG