tacky homemade signs offering rentals for double market rate?

[pully]

lately i have noticed homemade signs offering rentals for approx double market rates.
who would be attracted to this and who markets their properties this way?

there are also similar signs about offering to buy properties.

i have heard anecdotal stories of people being offered 20percent less than market value for homes, and offers to allow the sellers to rent back at a lot more than market value.

is this practice legal?
is seems unethical.
any thoughts/comments.
regards

 

[Propertunity]

pully,

you need to do a serach on:
rent to own,
wraps,
vendor finance
Rick Otton

I'm personally not into it - but it is legal

 

[pully]

thanks propertunity

i suspected that maybe the case.
i also take notice of the uk market and know that the powers that be are looking at those practices.

apparently the people who sell then rent often find they end up with no security of tenure despite promises to the contrary.

it seems rife amongst disadvantaged/vulnerable people. easy prey.

i expect we will see more of it as the economy changes.

it is not a good thing but then life is not fair.
in my opinion a good living can be made without this sort of thing.
thanks again.

 

[Aaron Sice]

it's just buyers applying "vendor finance" to residential homes - normally found in commercial deals. i know a certain someone on this forum who does it with some success.

it's about buying at 60% of the purchase price TODAY, and owning it (or your bank - whatever) and paying the remainder in 3-5 years time.

i guess they're targeting the people in awful situations, stuck between a rock and a hard place in regards to rental vacancies and the cost of holding and taking advantage of them through increased rents - or at least making sure the 60% they've outlayed is making a cash rate of return after costs.

things to think about - but it's nasty times out there and people were being targeted for worse schemes during the "boom".