How Rent to Own Works

Hello, we speak with people every day who tell us, “Oh, I know how rent to own works. I'm just going to rent the home for a few years, and then I'll decide if I want to buy the place at the end of that.” The problem with that is renting and then decide to buy, the price in the market will have appreciated right past you. It'll be more expensive for you. Our program allows you to lock in the price on day one, and capture that appreciation. The price doesn't change over the course of the lease. And keep in mind historically, appreciation is about three to 4% a year, and recently it's been 48% in much of the country. Why not lock that equity and on day one? 

So, you may be thinking, who are the people that need this program? The buyers that we work with tend to be folks that are either self-employed or just need a little bit of time to get mortgage ready, what banks call seasoning. Or they have a legitimate hiccup in their credit, or they've gone through a live event, maybe a divorce, a death of a family member a bankruptcy, and they need some time to become mortgage ready. Those are typical buyers. Not everyone fits into those boxes. And you might fall into one of these categories and you might fall into one of the categories that we didn't mention. And your credit is less than perfect, and we can help you with that. 

We get you connected with a great credit enhancement company that will give you a specific strategy on how to enhance your credit and get it to the point where you are mortgage ready. And that's our whole goal. That way you become a buyer. We want to be one team, you and us, so that we can partner and helping you become a buyer, what we call a tenant buyer actually, and turn you into a homeowner. So, these are some steps to get you there. So first, check out our website and register for our properties because our properties go pretty quickly. It's absolutely free. We're not doing any credit checks or background checks, nothing like that

We want to make sure that if you're interested in using our program, you can become a buyer after you get registered on our site. That way, as soon as a property pops up, you're one of the first people that receives it. So, you want to make sure that you get registered because every time that we get a new home, I send out an email blast to buyers on our list who have registered before I even advertise anywhere. So, if you register, you'll be getting first dibs, so to speak on these properties and before we advertise anywhere. It's pretty neat. 

Second step is if you're a buyer on our property email blast, and you inquire on a property on the email blast, we'll set you up for a viewing, and we can go over the property. If you're interested in taking the next step, after seeing the property, you want to fill out a few forms and get those back to us. And those are called our next step forms. Those forms will tell us more about who you are as a buyer. So, we're going to know your job, your income, what your down payment will be, especially initially before you have an in office meeting with us. So, we'll have a better picture of who you are as a buyer, and that way we can see if our program is going to be a fit for you, in order to help you buy this property. And once we get those forms back from you, I'll give you a call and we can go over them. 

Once we get to the point where we're both comfortable with each other and comfortable with your plan, then I'll arrange what we call a buyers meeting. And the main point of a buyers meeting is to meet each other face to face because a lot up until this point is done over the phone or over email. So, it's really important to us to look someone in the eye that we're going to do business with over the next two to three years. We're just going to develop that comfort level and go over a simple buyer letter of intention to outline your steps for success. Because remember, our whole goal is to get you to the finish line. So, we're going to outline those steps. And then we're going to go over your down payment plan.

So, what you're going to need just to bind the contract is what we call a binder deposit. It typically falls between or typically falls around $1,000. But if it's a larger home, it may be upwards of 2,000 to $4,000. And it's fully refundable if you're not accepted. So, as soon as you are accepted, we can do that within three to seven business days and you can settle with our attorney. Now, while we're sitting down with you at this buyers meeting, we're going to go over your deposit. Generally, the deposits fall between the 3% and 10% range. You may be thinking that's quite the range guys, 3% to 10%. The whole goal here is to get you to the point where you're not only mortgage ready, but you also have access to the best possible programs available. You'll have better interest rates, and you can hit a home run with this. 

The way to do that is to have as big of a deposit as you can muster. We never want anyone to have access to anything subpar. We want to get you to the finish line. So, some ways that many of our buyers have gotten their total deposit amount up is either a 401k or retirement account, you can borrow from that account. Many quarterly or annual bonuses from work, that's a great source as well. Many other buyers have family moving in with them and can get help from their families. Many also use their tax refunds. The best part about the down payment is that it’s completely credited towards your purchase price. So, every dollar that you put down on the down payment is actually coming off of your purchase price. This makes it easier for you to eventually go get a mortgage and become a homeowner. 

So, let's summarize this. I know this is a lot of information here but let's summarize. First, you're going to register or opt in to find the property. And then you're going to find the property that you like. Once you do that, you're going to go and view the property. If it's vacant, we’ll give you a lockbox number and you can check it out on your own or will arrange a walkthrough with you. And then we'll set up a meeting with you and our credit team. They'll help you with credit repair or credit enhancement. We look forward to working with you. 


Max Property Solutions


146-B Ferry Street

Unit #1006
Newark, NJ 07105

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