If you’ve fallen in love with the property you’re currently renting, it’s only natural to think about buying it. Perhaps it’s the perfect home for your family to grow into, or it’s in the best location for your thriving business. Either way, there are scenarios in which tenants can buy the commercial and residential real estate that they’re currently renting. If you’re thinking about doing so, here are the steps for getting started. 

How to Buy the Property You’re Renting 

1. Review Your Finances 

Rent-to-own arrangements make it possible to purchase both commercial and residential real estate without having to make sizable down payments. In other words, tenants-turned-buyers have a bit more financial flexibility. There will still be considerable financial obligations both during and after the transaction. Therefore, it’s essential to review your situation to confirm if the purchase will be manageable before proceeding.

2. Meet With the Landlord 

The only way to determine if buying the property is actually an option is to meet with the landlord. Ask if he or she is open to selling within the next few years. If so, next ask if you can enter into a lease option. Instead of a traditional lease-to-own arrangement, which imposes an obligation to buy the property on a set date, a lease option provides the flexibility to back out should your situation change before it’s time to assume ownership. 

3. Apply for the Mortgage 

Once the time comes to begin the transaction, you will need to apply for financing. Request a no-obligation quote from multiple lenders, so you can choose the one with the best interest rate. Buying commercial and residential real estate is a major investment, but as long as you perform due diligence and secure the best terms possible, it can pay off immensely. 

Whether you need help navigating a traditional real estate transaction or a rent-to-own arrangement, you can turn to Alan A. Panek Law Office, S.C. for guidance. Practicing out of Wisconsin Rapids, WI, this knowledgeable attorney is well versed in local laws regarding both commercial and residential real estate. He also assists with wills and trusts, employment law disputes, and general business matters. To learn more about his legal services, visit his website. To schedule a meeting, call (715) 421-4900.