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Hire purchase A hire purchase ( HP ), [ 1 ] also known as an installment plan , is an arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial installment (e.g., 40% of the total) and repaying the balance of the price of the asset plus interest over a period of time.
Lease purchase agreement (click to view pages) Rent-to-own, also known as rental purchase or rent-to-buy, is a type of legally documented transaction under which tangible property, such as furniture, consumer electronics, motor vehicles, home appliances, engagement rings, and real property, is leased in exchange for a weekly or monthly payment, with the option to purchase at some point during ...
For real estate transactions, alternative financing approaches such as lease-to-own carry fewer consumer protections than traditional financing, and typically involve a higher cost for the buyer. [2] Commercial loan arrangements are exempt from the Dodd-Frank Act, as a landlord might rent to own a property for the purpose of sub-letting to a ...
The delayed-financing process begins with a homebuyer coming up with the funds to purchase a home in cash. How they do so is up to them: They might choose to use savings or sell off other assets ...
1. Owner Financing. In investing as in life, you don’t get what you deserve; you get what you negotiate. So as you make offers, feel out the seller on whether they’re open to owner financing ...
Financial inadequacy, such as renting a house when one is unable to purchase, i.e "renting by necessity". Reducing financial risk due to depreciation and transaction costs, especially for real estate which might be needed only for a short amount of time. When something is needed only temporarily, as in the case of a special tool, a truck or a skip.
While hire purchase is the legal origin of the rent-to-own transaction, the two should not be merged as rent-to-own has become its own market and legal definition in the economy today. Most notably, in the United States the rent-to-own transaction is legally defined in 47 states and represents a $6.6 billion dollar industry serving 3 million ...
A credit tenant lease (also known as a "bondable lease") is a method of financing real estate. [1] [2] A "credit tenant lease" is a lease from a landlord to a tenant that carries sufficient guarantees that lenders will perceive the rent cash flows from the lease are as reliable as a corporate bond. This typically requires that the tenant have ...