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Learn the Difference between Rent to Own and Owner Finance

In today’s real estate investing industry, the two terms that are being used by the people who are comprising this particular industry are owner finance and rent to own. These two terms are actually ways or methods that are recognized as both well-paid or advantageous and unconventional at the same time, and such are typically being used for the acts of investment property financing and home financing. The term owner financing can also be called as seller financing, and it is basically referring to a specific transaction that allows or enables the buyers to purchase or buy the house property in an outright manner without the undergoing a banking system; while the rent to own is actually referring to a specific transaction that is providing the buyers of the property to try or test-drive it first before deciding to completely purchase it.

For clarification purposes, the term rent to own is actually a certain type of documented transaction that is legally practiced and made for payment in a weekly or monthly basis and they have this privilege to purchase the property immediately, and some of the inclusions for this transaction include the consumer electronics, real property, home appliances, motor vehicles, and furniture. Seller financing is another term that is being used for owner financing, and it is actually described as an agreement between the owner and buyer in a contractual basis, and the terms such as the purchase price, the schedule of payments and the interest rate may change or vary due to various circumstances. The rent to own is allowing or providing the buyer a chance to try new and available real estate in the market, while the owner finance is also described as a term that means that the buyer will be the formal owner of the property even though he or she is still making payments.

The individual who wants to try their fate and luck in the industry of real estate investing should first familiarize themselves about these two options and erase or delete the option of using the traditional mortgages. The rent to own and owner financing may be different but they also have similarities, such as the fact that these two options can actually help the buyers to secure their financial status or standings in the future, these two options are also letting the buyers purchase and own the residential or home property regardless or despite their credit standing or level, and these options is also recognized as the two best options for real estate investing and home financing.