Lease-to-own real estate deals can be win-win
Seller collects top dollar, buyer secures home with little cash down
By Jack Guttentag, Sunday, October 10, 2004.Inman News
"I am attracted by the idea of buying a house under a lease-to-own plan, but am frightened by reports of scams. Should I be?"
Frightened, no; careful, yes.
Any kind of financial contract can be structured in such a way that all the benefits flow to one of the parties and none to the other. Lease-to-own (LTO) plans are hardly unique in that regard. But LTO plans have a solid economic rationale, which means that they can be structured so that both parties benefit.
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Copyright 2004 Jack Guttentag
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