Can a No-Money Down Rent to Own Work?

Are you curious about rent to own, but don't have any money to put down? Wondering if a no-money down rent to own option can work for you?

It is a very important question and good for you for doing some research on the topic. You will need to understand the challenges that will come as a result of a no-money down rent to own. Hopefully this article will heighten awareness around some of the questions you need to ask to protect yourself if you are pursuing a no-money down rent to own.

Simply put, a no-money down rent to own is one where you do not have to put any money down in order to get into the program.

What are the implications?

1. More risk to the investor so they will offset their risks by charging you higher monthly rents (maybe even higher than market rents). I have seen situations where rents for a no money down rent to own were as high as $ 2000-2500 when the market rents in the same area were $ 1500 per month. This amount of $ 2000-2500 does not always account for any money being credited towards your down payment so be sure to ASK!

2. You will have to save up a greater portion of your down payment by yourself before the end of the rent to own program or risk not qualifying for a mortgage and consequently losing the property. Looking at this in terms of numbers, an average house price of $ 300,000 will require a 5% down (or $ 15,000). If you come into the rent to own with ZERO down, you will need to save up $ 15,000 over an average term of 3 years (for example) to qualify for that mortgage at the end of the term. That means saving $ 5,000 a year. If your rent to own allots, say, $ 200 a month towards your down payment, you would accumulate $ 7,200 over the three years. That means you would need to make up the balance, or $ 7,800 yourself. If you are unable to do this, you will not qualify for your mortgage and you will more than likely be asked to leave the house at the end of the rent to own term.

3. You will not build up any equity in the property (basically you are a renter (paying higher than market rents) with the hope that you can save up enough down payment and purchase the property at the end of the rent to own program. Equity is the amount of money you have invested in the property or earned on the value gain for the property. For example, if you put $ 10,000 down on a property, you automatically have $ 10,000 in equity in that property. If you put no money down , you have zero equity in the property.

4. In many cases (not all but many), you will be left to your own devices to …

Top Rated Money Market Accounts: Understanding How MMAs Work and Which Bank to Choose From

A “money market account”, or MMA, is a low-risk savings solution offered by credit unions and banks. Unlike with personal savings accounts, banks can actually invest the money from MMAs in other places such as bonds and CDs. The places they invest in are very low-risk, making the investment from the customers purchasing the MMA very low-risk itself. Investing in the top rated money market accounts is worthwhile since you will receive a better interest rate than you typically would with a savings account.

People open such an account for a variety of reasons, with the most common being because they wish to build an emergency fund. It’s a good choice for those who want low-risk savings and only need moderate access to their cash. The minimum requirement to open the account can be as low as $100, depending on the bank. Online banks can offer more flexibility than a traditional bank. With the top rated money market accounts, the customer will benefit from the bank’s high interest rates. Look for a high yield deposit account with a reasonable minimum deposit.

It’s important not to mix up money market accounts with money market funds. The latter is a type of investment with a fluctuating rate of return and is not FDIC-insured. An MMA, on the other hand, DOES have FDIC protection. An MMA also has its pros compared to a CD or other long-term investment, as it allows withdrawals, although there is usually a limit of how many pre-authorized withdrawals and transfers per statement cycle.

Top Rated Money Market Accounts Fees

Do research on various online banks to see what kinds of fees are associated with MMA accounts. The best banks are the ones that do not charge any fees for opening an account or for monthly services.

An MMA account is a great way to get started with investing. You won’t have to worry about managing the daily moves. The bank will take care of everything for you – all you have to do is sit back and let the money grow. The returns probably won’t be as high as if you were successfully investing on your own, but if you don’t have much experience with investing anyway, this is a better option, as it is safe and secure. Money market accounts still offer better interest rates than regular savings accounts.

Where can you find the top rated money market accounts? It’s recommended that you start with CIT Bank. This online bank only has a minimum deposit requirement of $100 and charges no fees. There is an annual percentage yield of 1.85% for all accounts.

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Do Personal Alarms Work?

If you read reviews of personal attack alarms, you will find that some people say that the alarms are not loud enough. The truth is that many people misunderstand what a personal alarm is designed to do. The primary purpose of these devices is not to attract attention, but to make the attacker stop what they are doing and run away.

How Loud Are Personal Alarms?

Most personal alarms are in the region of 110dB to 140dB. To put that in perspective, a power saw is 110dB at three feet away, and a jet engine is 140dB at 100 feet away. However, sound doesn’t travel too well through solid objects. That’s why shutting your windows will partially block at the sound of traffic in the street below. This simple fact applies to alarms as well. If you set one off, it won’t seem very loud if you are in the next room. But, if you were to hold one up to your ear, you could damage your hearing.

How Do Personal Alarms Work Then?

Thieves, muggers and other types of criminals don’t want to get caught. They want to commit their crime and get away with it. If someone triggers a loud alarm when they are attacked, the perpetrator will be surprised, confused, and is likely to become concerned that they will be caught in the act. The loud siren of an alarm may attract attention. Unfortunately, though, bystanders may not always react to it. This is simply because we have all become somewhat accustomed to hearing sirens. A criminal, though, won’t want to risk getting caught. So, the sound will be enough to scare them away.

What About Other Self-Defense Products?

There are other non-lethal self-defense products that you can use. One of the most popular of these is the pepper spray. The potential problem with pepper sprays is that you can’t take them everywhere with you. They are prohibited on commercial airlines, and you are not allowed to carry a pepper spray in some public areas and buildings. If you are going on an overseas vacation, you also need to be aware that is illegal to carry pepper sprays in some countries.

In What Circumstances Will a Personal Alarm Not Work?

Personal alarms are effective in any situations where the attacker thinks that the noise may attract attention. For that reason, using one on a hiking trip into a remote region probably wouldn’t have the desired effect. Their effectiveness can also be limited by background noise. If you were at a rock concert, for example, an alarm siren probably wouldn’t be heard. In most situations, though, the fear that the alarm might bring help will be enough to deter an attacker.

What Type of Personal Alarm Is the Most Effective

You can find personal alarms on sale in stores and online. They do vary quite a lot in quality though. Some of the very cheap models may have batteries that you can’t replace, and the batteries may not …