{"id":372,"date":"2023-02-07T19:35:15","date_gmt":"2023-02-07T19:35:15","guid":{"rendered":"https:\/\/colemanmg.com\/rent\/?page_id=372"},"modified":"2023-02-14T23:25:02","modified_gmt":"2023-02-14T23:25:02","slug":"how-it-works","status":"publish","type":"page","link":"https:\/\/colemanmg.com\/rent\/how-it-works\/","title":{"rendered":"How It Works"},"content":{"rendered":"\n

Step by Step Rent to Own Process<\/kbd><\/h2>\n\n\n\n
<\/div>\n\n\n\n

Find a home listed for sale that’s right for you. We buy it and lease it to you with the peace of mind of locked-in rent amounts and purchase prices. Live in the home as a renter with the option to buy it at any point. At the end of your 1-year lease term, you can renew for another year or walk away with no penalties. No matter what you decide, we are your partner.<\/p>\n\n\n\n

<\/div>\n\n\n\n
\n
\n

Apply For Approval<\/strong><\/h2>\n\n\n\n

Answer questions on our FREE Pre-Qualification Questionnaire to see if you meet the basic applicant criteria. The approval is not based on your credit at all so feel free to complete all questions.
We will notify you within 1-2 business days with additional information.<\/strong><\/p>\n<\/div>\n\n\n\n

\n

Find An Eligible Home<\/strong><\/h2>\n\n\n\n

After approval, we give you a maximum monthly rent amount. Work with your real estate agent to tour eligible homes listed for sale. Once you find a home you love, you complete a request form. After completing the request form, your agent submits the home to us for review.<\/strong><\/p>\n\n\n\n

<\/p>\n<\/div>\n\n\n\n

\n

We Buy You<\/strong> Lease It<\/strong><\/h2>\n\n\n\n

We show you our Anticipated Terms with 2 years of locked-in monthly rent amounts and Right to Purchase prices and estimated repair costs. After you approve our terms, we submit a competitive cash offer to buy the home. If the seller accepts, you sign a 1-year lease and Right to Purchase agreement.<\/strong><\/p>\n\n\n\n

<\/p>\n<\/div>\n\n\n\n

\n

Right To Purchase<\/strong><\/h2>\n\n\n\n

You rent the home with the flexibility of a 1-year lease and the option to buy at any time. At the end of each lease term, you can choose to walk away without penalties, or you can renew your lease for another year. In total, you can rent the home for up to 2 years.<\/strong><\/p>\n<\/div>\n<\/div>\n\n\n\n

<\/div>\n\n\n\n

Is the Program Right for Me?<\/strong><\/h2>\n\n\n\n
<\/div>\n\n\n\n
\n
\n

I’m not ready for a mortgage.<\/strong><\/h2>\n\n\n\n

Get into your dream home now without a mortgage. Plan ahead with 2 years of locked-in rent amounts and purchase prices.<\/p>\n<\/div>\n\n\n\n

\n

I’m relocating to a new area.<\/strong><\/h2>\n\n\n\n

Finding a new neighborhood to move to isn’t easy. Test drive a community and home you want without the long-term commitment.<\/p>\n<\/div>\n<\/div>\n\n\n\n

\n
\n

I’m a first-time home buyer.<\/strong><\/h2>\n\n\n\n

We understand that buying your first home is a big decision. Try before you buy! Live in the home you want while deciding if it’s right for you.<\/p>\n<\/div>\n\n\n\n

\n

I’m looking to rent a great home.<\/strong><\/h2>\n\n\n\n

More options! Unlock access to dozens of homes listed for sale. Expand your options to find a high-quality single-family home that may not be available on the rental market.<\/p>\n<\/div>\n<\/div>\n\n\n\n

Apply For Approval<\/strong><\/h2>\n\n\n\n
<\/div>\n\n\n\n

The approval process is a very simple item by filling out all the details below from A to Z. Make sure to input truthful information which will be verified during the approval process. Once you complete all details below you will need to very that info with the confirmation email and we will reach back out in 1-2 business days.<\/p>\n\n\n\n

Important: To qualify for this program you must sign up for at least 1-year credit repair. This is so we can put you on the path of purchasing the subject property outright at the end of your lease. So your application will stay (PENDING) until you are an active member of our credit repair program. This program is one of the best and most affordable programs that will help increase your cried and unluck tons of funding moving forward. <\/p>\n\n\n\n

<\/div>\n\n\n\n

[Sign Up For Credit Repair]<\/a><\/strong><\/p>\n\n\n\n

<\/div>\n\n\n\n

Find An Eligible Home<\/strong><\/strong><\/h2>\n\n\n\n
<\/div>\n\n\n\n

First, you will need to work with your agent or you can contact us and we will suggest one for you. If you are working with your very own agent then they must be signed up on our site<\/a>. <\/p>\n\n\n\n

<\/div>\n\n\n\n

What Can I Afford<\/h2>\n\n\n\n

Below you will see a simple to follow layout of what property price range you and\/or your realtor will need to searching. Your realtor can search the MLS database while you can search on Zillow<\/a> and Redfin<\/a>.<\/p>\n\n\n\n

Property Price + Yearly Income (Collective Household Income<\/strong>)<\/p>\n\n\n\n

300,000 Property = 70k a Year Income<\/strong><\/p>\n\n\n\n

250,000 – 299k Property = 65k a Year Income<\/strong><\/p>\n\n\n\n

200,000 – 249k Property = 60k a Year Income<\/strong><\/p>\n\n\n\n

150,000 – 199k Property = 55k a Year Income<\/strong><\/p>\n\n\n\n

100,000 – 149k Property = 50k a Year Income<\/strong><\/p>\n\n\n\n

50,000 – 99k Property = 45k a Year Income<\/strong><\/p>\n\n\n\n

<\/div>\n\n\n\n

Option To Purchase Downpayment (Non Refundable) Applied to Purchase Price<\/strong><\/p>\n\n\n\n

Our .70% Buying Formula <\/h2>\n\n\n\n

What is the 70 percent buying Formula?<\/strong><\/h2>\n\n\n\n

How does the 70 percent rule<\/strong> work in practice? To use it, you\u2019ll have to do some simple calculations. The equation is: \u201cAfter-repair value (ARV) \u2715 .70 \u2212 Estimated repair costs = Maximum buying price.<\/p>\n\n\n\n

So, for example, if you estimate that a home\u2019s ARV is $500,000, you would multiply that amount by .70, resulting in a price of $350,000. You would then subtract the estimated price of renovations. If you predict that the house requires $50,000 in renovations, then your maximum purchase price would be $300,000.<\/p>\n\n\n\n

When looking to purchase a property you will take a few factors to determine the buy price. <\/p>\n\n\n\n

    \n
  • Updated Properties\u00a0<\/strong><\/li>\n\n\n\n
  • Outdated Properties<\/strong><\/li>\n<\/ul>\n\n\n\n

    Updated Properties<\/strong>\u00a0<\/p>\n\n\n\n

    To be able to determine the buy price for an already updated property that needs little to no work. Then all you will have to do is take their price x .70%.<\/p>\n\n\n\n

    For example:<\/em><\/strong><\/p>\n\n\n\n

    Asking Price $150,000 X .70% = 105,000 Buy Price<\/p>\n\n\n\n

    Asking Price $98,000 x .70% = $68,000 Buy Price<\/p>\n\n\n\n

    Outdated Properties\u00a0<\/strong><\/p>\n\n\n\n

    These properties are pretty much the same but the only twist is that you must factor in repair cost which we will cover 100%…nothing comes from you when it comes to purchasing or the repairs that’s all on us.<\/p>\n\n\n\n

    So here is the number to determine the repair price if it’s a property you want but it’s somewhat out of date and needs upgrading.<\/p>\n\n\n\n

    These numbers are based on the square footage to know the repair price. <\/p>\n\n\n\n

    Under 1,500 Sqft = $40,000 in Repairs\u00a0<\/strong><\/p>\n\n\n\n

    1,501 – 2,500 SQft = $50,000 in Repairs<\/strong><\/p>\n\n\n\n

    2,501 – 3,500 SQft = 60,000 in Repairs<\/strong><\/p>\n\n\n\n

    Taking the same properties before let’s say the $150,000 property is at 1,500 SQft and it needs repairs so what will be the purchase price from us?<\/p>\n\n\n\n

    Asking Price $150,000 X .70% = 105,000 – $40,000 in Repairs = $65,000 Buy Price<\/strong><\/p>\n\n\n\n

    For another example let’s say the $254,000 property is at 2,300 SQft and it needs repairs so what will be the purchase price from us?<\/p>\n\n\n\n

    Asking Price $254,000 X .70% = 177,800 – $50,000 in Repairs = $127,800 Buy Price<\/strong><\/p>\n\n\n\n

    The Poppa Homes OwnerShip Program buys properties with this formula to protect the investment for us and the client. We have the resources to get these deals done but it must be for the .70% buy price. <\/p>\n\n\n\n

    When looking for properties you will need to do these simple numbers and you will know where the price needs to be for us to purchase the property. <\/p>\n\n\n\n

    <\/div>\n\n\n\n

    How to Search Redfin for Properties<\/strong><\/p>\n\n\n\n

    \n