What are rent to own buildings?
The term is not new to the real estate market and also regarded as the ‘lease-option’. It arose as a very viable option to consider because of its flexibility. As they say, putting a mortgage down on a home will probably be the most important investment you ever make. Rent to own buildings made a lot of sense because it provided the prospective homeowners a chance to lease out the place for a specified amount of time while they had the opportunity to decide if they even liked it or not. It also gave the buyer the time to establish a down payment that they likely did not have at the current moment.
Rent to own buildings are now a popular alternative for not only those seeking commercial real estate but also something as simple as self-storage.
Are you a business like a professional landscape company or a mechanic that needs a shop away from the shop? There is a good chance you need extra storage to house expensive equipment vital to the everyday operation of your business. Or, perhaps you are merely a homeowner that has run out of room inside the home to store excess clutter. The basement and garage is stuffed and it is time to get organized!
Simply paying a commercial lot to store your own goods on a month-by-month rental agreement will prove to be costly over a long period where buying the unit would have been far more applicable. On the other hand, you may want to own storage that is located on your own personal property yet lack the funds at the moment to purchase it outright. Once again, consider rent to own buildings.
Rent to own is a rather simple concept: You sign a lease with the lender agreeing to pay a certain fee per month for the rental. The fee will cover the standard rental charge and extra money each month that will be put aside for a payment that eventually leads to you owning the storage unit.
Rent to own is a phenomenal way to get the storage you need now while you slowly collect the necessary funds to eventually purchase the structure. The only drawback is that with some agreements if you decide to change your mind halfway through and no longer seek to purchase the storage in full, the extra money that was placed aside each month may not be returned. It is up to the lender whether to make that stipulation.