Have you ever considered what would happen if the client still can’t get a mortgage at the end of their Rent to Own program? This is another example of an important question you should be asking when it comes to rent to own.
Legally speaking, the client risks losing their option fee and option credits if they do not exercise their option to purchase by the date specified in their option agreement.
However, most investors choose rent to own as an investment strategy for the excellent cash flow that these investments offer and are usually willing to work with the client to create another win-win solution. Often investors are willing to renegotiate the purchase price and extend the term if required because they enjoy receiving their monthly cash flow and for the investor, it’s usually easier, cheaper, and less risky to continue with an existing rent to own client than to setup a brand new deal.