Armando Montelongo Seminars: Tips for Rent-to-Own Homes
As a concept, rent-to-own homes might seem like a good idea. Tenants can live in the house that they are paying for regularly and in due time, it will be theirs. However, in order to make the most out of this kind of arrangement, renters would need to keep a few things in mind. With these tips shared by Armando Montelongo, aspiring homeowners are more likely to end up with their dream home.
Before anything else, though, it’s worth pointing out that rent-to-own homes are quite rare. Most sellers prefer to simply get the most amount of money they can with as few steps as possible. Renting homes is meant to be a source of constant cash flow for landlords, as well. As such, letting tenants buy the property would cut the owner off from the money it is generating.
These types of arrangements are also most suitable for those who have issues with their credit scores or are just unable to generate enough money for the downpayment right away. Real estate investors who are eligible for mortgage approval can still choose this option, but it’s rarely the most lucrative choice.
With that out of the way, here are three tips that Armando Montelongo, Founder of Armando Montelongo Seminars is urging potential homeowners or real estate investors to keep in mind regarding rent-to-own homes.
1. Securing Finances First
One of the most common reasons for going with a rent-to-own option is the buyer’s inability to get approved for a mortgage. The second is not having enough money for the full downpayment. Even with that being the case, it’s important that the buyer/tenant is reasonably secure in their finances before proceeding.
In most cases, when entering into this type of contract, part of the rent goes into the downpayment until the end of the lease period. Once that happens, the resident will then have the option to buy the house. The grace period would then be between one to three years instead of only a few months.
This period can be used to fix the tenant’s credit score or come up with enough money to then be able to purchase the property. To that end, Armando Montelongo Seminars advises investors to make sure that a plan to do those things should already be in motion before entering the contract. Otherwise, the buyer could lose their down payment once the contract ends.
If the buyer is unsure that they will be able to come up with the money or that they won’t be able to qualify for a mortgage within the given time, they should think twice about signing the agreement.
2. Thorough Due Diligence
While a rent-to-own home might be convenient for someone who is in a less ideal financial state, this does not excuse sloppy due diligence. An unfortunate fact about these types of properties is that they often come with significant damages. Interested parties will need to check every nook and cranny of the home to be aware of what these damages are.
In many cases, there can also be some structural wear and tear, which can be incredibly expensive to repair. With that being the case, buying the property at the end of the contract could end up costing more than the house is worth. And this is just about the expenses that the damages could incur.
There could also be additional obligations that are buried in the contract, Armando Montelongo warns. With that being the case, it’s important to have a lawyer read the agreement before signing.
The whole point of choosing this option is to save money and fix the tenant’s credit score. Any extra expense that is not made explicitly clear can set the buyer back and even prevent them from purchasing the property.
3. No Guarantees
Finally, there are no guarantees when it comes to the eventual transfer of ownership of the home once the contract is done. Within the period of time at the start of the agreement until its end, the owner still holds all the rights and obligations regarding the property. This means that if there were any issues that should arise, the buyer might not end up owning the house.
One of the biggest concerns is delinquency in the owner’s mortgage payments and another is a failure to pay property taxes properly. If the home is foreclosed before the contract expires and the deed is transferred, there would be nothing that the buyer could do about it. As such, part of the due diligence is confirming that everything on that point is above board.
If the owner of the house is actually serious about letting the property go once the contract has been fulfilled, there should be no problem with this matter. However, unless the buyer can make absolutely sure that they will end up owning the house after the agreement, Armando of Armando Montelongo advises not signing at all.
Should you go to Armando Montelongo Seminars?
Armando Montelongo Seminars offer phenomenal value for both early on and experienced real estate investors. If you are on the fence about checking out Armando Montelongo Seminars, you should sign up for Armando’s 3 Day Real Estate Investing Workshop to learn more. Learning from a real estate tycoon like Armando Montelongo will surely have it’s impacts. For one, you will get access to his network and receive exclusive rates on contracting, materials, and access to hundreds of already successful students within the mastermind. As an entrepreneur venturing into real estate, even when learning from one of the most recognized real estate investors in the country, you will still have challenges. Armando Montelongo Seminars practice is what they preach. The mentors at the program emphasize the importance of consistency in your work. Consistency is a key factor that plays a significant role in your personal success. After verifying several testimonials from Armando Montelongo seminars customers, there is no doubt that there are people succeeding with the program.
Armando Montelongo and Armando Montelongo Seminars
Armando Montelongo is an American entrepreneur and real estate investor who is the current Chief Executive Officer, Armando Montelongo Companies, including Armando Montelongo Seminars. He is best known for starring in A&E’s Flip This House but has since made a name for his savvy real estate methods and teachings.
Armando Montelongo was recognized in 2011 by Inc. 500 with a No. 2 rank among Hispanic business owners. Since leaving his reality TV days, he has since built a reputation as a real estate mogul through his Armando Montelongo Seminars where he shares his expertise in making excellent ROI on real estate investment deals.
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