Someone emailed me with the following. Is it a cam or legit business?
Finance the Dream is Pleased to Announce
he program we run is a rent to own program
Rent to Own – Rent to Own Homes – Rent to Own Homes Listings designed strictly for people that are serious and committed to owning a home. Because my partner also has 12 years of experience in mortgage banking, lending and financial services, he set the program up with the end in the mind. The end is a fast and successful takeout at full price because the buyers are fast tracked for mortgage qualification and contractually required to enter and maintain our credit restoration program until they are qualified.
The terms:
The final contract structure is a contract for deed without deed conveyance or recordation. It's similar to a triple net lease structure in that the buyers are responsible for all maintenance and repairs, as well as all expenses, debt service, taxes (and any increases thereon), insurance (and any increases thereon), HOA dues (and any increases thereon), home warranty, termite bond, etc. making it a perfect situation for a seller who doesn’t want to be a landlord or an absentee landlord. There are no phone calls at 2 AM about a leaky toilet.
Additionally, the buyers execute a bank draft authorization form for direct draft of the monthly lease payment for direct deposit into your account which eliminates “the check’s in the mail” syndrome.
The contracts are spring loaded bear traps designed to protect the seller to the nth degree (because they were originally developed for my partner’s homes and you get his actual contract) and they avoid and eliminate the equitable interest argument in the event of a default, thereby negating the need for a judicial foreclosure prior to a dispossessory action.
There are no negotiations on payment because the payment is a minimum of your carrying cost. This negates having to compete with the current rental rates which tend to be significantly lower than actual carrying cost on a fully leveraged property. If the seller has a great deal of equity or owns the property free and clear, we typically structure the payment at true carrying cost if the buyer were qualified for mortgage financing today which provides substantial cash flow and better than rental market rents. Likewise, the purchase price or formula used for purchase price mandates that the seller gets full fair market value without having to take a haircut due to a deflated market.
So, from this transaction, you would gain immediate cash flow, eliminate debt service, eliminate utilities while marketing for sale, eliminate any additional maintenance & repair expense, get a buyer willing to pay full price and enjoy life without having to worry about the property.
In this scenario, you get absolved of:
Payments
Taxes
Insurance
Maintenance
Repairs
Future cost increases (like taxes or insurance going up)
And, you don't have to deal with leaky toilets or calls in the middle of the night.
These deals are much better than rental deals because they provide the opportunity to cash flow more with less headache and you know that you've got a constant income stream every month, unlike a rental where your cash flow can easily disappear due to maintenance and repairs and tax and insurance increases.
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