Renting to Own Real Estate is it a SCAM

    Renting versus buying a homeI think I’m one of the only in the real estate industry in the Santa Clarita Valley that has put time into writing about renting to own deals that come up from time to time.

    This Renting to Own Real Estate, is it a SCAM”, article applies to the entire world. It does not have to be a property in the Santa Clarita Valley or in Southern California. – fyi…

    They are marketed towards people that have lower than normal credit profiles and the low income earners. Maybe the attraction is the lack of needing to “qualify” to the bank’s standard. It could be the buyer has no credit profile. Maybe they came out of a short sale, foreclosure or another financial hardship and want to buy now instead of waiting for their credit to be healed.

    The rent to own owner holds all the cards

    The owner of the property on a Rent to Own listing is going to act as if they are the bank. They will be the bank and they are going to finance the home, at least temporarily.

    They will be building, within contract, information related to how the rent to own home transaction will be structured.

    Term – will equate to the length of time the owner is willing to finance the property until they make it mandatory for you to go to a “real bank” to get financing and buy the home at a pre negotiated price.

    That is where some of the Santa Clarita Renting to Own scenarios are going to create a reason for you to keep renting until your credit profile improves where you can buy a home and get a mortgage loan from a Broker, Bank or Credit Union.

    Rent to own down payments

    In some cases, the owners of the rent to own properties are going to charge you extra monies a month so you can “save” for your downpayment in order to finance it with the owner.

    In other cases, the owners are going to ask for that “down payment” upfront before the “rent to own” period starts.

    I have also seen cases where “consignment” of personal items and property has been requested by the Renting to Own Owner.

    The listing price and other items are going to depend on what is laid out in contract. If you are not reading the “rent to own” contract, you need to and have someone “Experienced” read it as well. Additionally, a Real Estate Attorney or seasoned Realtor should also be called into the review of the rent to own paperwork and contracts.

    Verbal will not hold up later – be careful

    Make sure you don’t think that verbal promises and communication will hold up in court. They will not, for the most part. You need to convert all verbal promises into email’s which you will send to the owner or their representative simply “making sure you understood the verbal discussion” that occurred.

    Renting Versus Buying real estate

    If you are wondering the answer to the question of whether you should rent or buy a home, here is a scenario if you were paying $2750 a month for rent and what would be the difference if you went out and had us find you a $500,000.00 home in Santa Clarita or in Southern California.

    Rent of 2750 versus buying a 500k home

    Be Safe – I’m Connor MacIvor and I’m ready to serve and protect your real estate needs.


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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. is where you will find over 10,000 real estate articles. Go to to listen to their latest real estate radio broadcast.

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