Frequently Asked Questions (FAQ)
Why Choose Rainbow Realty and IndyRentToBuy.com?
The owners of Rainbow Realty Group and IndyRentToBuy.com have been buying, selling, repairing and renting homes since 1974. We have worked hard to earn the respect and trust of several thousand satisfied customers.
We are licensed Real Estate Brokers who specialize in the home acquisition field. Our knowledge, experience, resources and expertise will make your home selling experience fast, easy and worry free!
It's no wonder why several families and several generations have sold their homes to Rainbow Realty Group.
Are Your Homes Difficult to Qualify For?
No! We find that most "good people" qualify for our homes. We even consider Bankruptcies if they are final. At Rainbow Realty Group and IndyRentToBuy.com we understand that people can get into financial trouble and often have "Bad Credit". All we are looking for is "Explainable Credit". Our application process is based on the following factors:
In approving our applicants the most consideration is placed on:
We may also consider and ask the applicant for further explanation of any negative:
- Amount of Income
- Monthly Expenses
- Time on the Job
Rainbow Realty Group and IndyRentToBuy.com is committed to improving the quality of living in our neighborhoods. We run extensive criminal arrest checks on all applicants. Our goal is to prevent felony criminals, drug dealers and thieves from moving into our homes and harming our neighborhoods.
- Landlord History
- Eviction History
- Credit Report
- Credit Score
- Criminal Report
When we consider applications, we look very close at the amount of monthly income and time you have worked at your job. However, a good landlord history and or good credit report can help with approving a new person transferring to the area or someone just starting a new job. We also examine monthly expenses to make sure the applicant has enough income left over to feed & cloth his family and pay utilities
Rainbow Realty Group considers all applications for all properties without regard to race, color, religion, creed, gender, national origin, age, disability, sexual orientation, marital status, family status or any other legally protected status.
"RAINBOW REALTY GROUP IS AN
EQUAL HOUSING OPPORTUNITY PROVIDER"
Can I Purchase More Than One Property?
Yes, we have many investors with multiple properties.
It has been our experience that owning a vacant property is high risk. If someone is not actively working on a property on a daily basis, the home becomes a target for vandals and thieves. It is for this reason we have a requirement that an investor can only have one major rehab project at a time... Buy one, fix it, and then buy another. This works out better for everyone.
Do I Have To Live In The Property?
No, many of our properties are purchased by investors in the business of renting to third party tenants. This is perfectly fine as long as you notify us of your mailing address. If you forget to notify us we will end up sending your mail and important notices to your tenant at the property address.
Does the Property Need Repair?
We make every attempt to keep our down payments affordable. A handy person can save thousands of dollars by making repairs vs. hiring a contractor. It is for this reason Rainbow Realty Group does as little to the property as possible and passes our savings on to the buyer.
To get back to the question of needed repairs . . . Most properties need wall repairs, painting and floor coverings. A few of the properties need new furnaces, electrical work and all new plumbing. It is important that you check the property thoroughly before you buy.
After you purchase the property, even years later, if you run into a major problem with the roof, furnace, water heater, electrical or plumbing we can have our maintenance staff or contractors make the needed repairs and allow you to pay us with affordable monthly payments.
Typically we can get the electrical, plumbing and heating functioning for about $100.00 additional each month.
How Do I See The Inside of the Property?
To see the inside of any Rent-To-Buy or Rental property is simple. Anyone can take out up to three (3) keys overnight.
- Visit our office
- Show your picture I.D.
- Leave something of value (a piece of I.D. or $20.00)
When you return the keys we will gladly return your I.D. or $20.00. If you need the keys longer than overnight, just ask our representative to extend the return date on you key form.
How Is The Title On The Property?
Prior to the seller purchasing the property a complete title search was run and a title insurance policy was purchased.
How Much Do I Need To Get The Property?
In order to sign your paper work and get the keys, you must pay the entire down payment plus the first month’s payment.
Can Rainbow Realty Hold the Property with My Application?
Yes, it is possible to hold the property. Remember that good properties go fast. Many times several prospects have keys to the same property at the same time. It is for this reason we recommend you leave a "Hold Deposit" with your application.
How much do I leave to hold the property? Well; some buyers pay the down payment/deposit, others pay the full amount needed to get the property.
Don't worry, if your application is not approved your Hold Deposit will be returned to you in full. By the way; any money you put down to hold the property will reduce the money needed when you sign your paper work.
WARNING! Just make sure you want the property, if for any reason you fail to take the property on the date requested on your application you could lose your Hold Deposit.
Is The Price, Down Payment, Monthly Payment or Interest Rate Negotiable?
Each property has its own set of circumstances. In addition, each buyer has his own wants needs and desires. We will consider reasonable offers that are submitted with a minimum of $500.00 earnest money (Cash, Money Order or Cashier’s Check). However, the owners usually do not negotiate unless the buyer is paying cash or increasing the down payment. It is important that you understand our reasons for pricing our properties:
Purchase Price: Because we acquire our properties at a discount we are able to pass our savings on to our buyers. We add just a small percentage onto the purchase price and therefore have little room to negotiate the price.
Down Payment: You will find that our down payments usually range from $100.00 to $1,000.00. Due to this low down payment, we cannot negotiate the amount you need to put down on your first home. However, we often waive the down payment for a second or third home you buy from us depending on your payment history.
Monthly Payment: Our loan payments are fixed for 30 years. This keeps your monthly payments as low as possible. It also keeps your expenses low while you are remodeling the property. Our buyers can save a substantial amount of finance charges by paying the home off early, that's O.K. with us! You can pay additional principal each month or at any frequency you desire without any prepayment penalty. Please note our loans do not include a balloon payment or large payments which could make you default on the loan. Our principal and interest payment remains constant throughout the entire loan.
Interest Rate: We offer a fixed rate of interest which will not increase if rates go up. In setting our interest rates we consider many factors which include: The risk of loss on the investment, the cost of holding the property, the condition of the property and the interest rate our seller/investor paid for funds at the time they acquired the property. We strongly recommend that our buyers refinance the property once their home is repaired to meet minimum loan standards.
Is There An Application Fee?
Yes, As part of our commitment to better neighborhoods, we thoroughly check out each applicant. We pay a private reporting agency for this service. In order to cover our expenses there is a $25.00 non-refundable fee per applicant.
Who Pays For The Real Estate Taxes?
The monthly payment includes the real estate property taxes.
The Seller has agreed to pay all real estate property tax installments which are due and payable up through the signing of our Rent-To-Buy agreement. The Buyer shall be responsible for all tax installments thereafter. Your regular monthly payment does included real estate taxes. The monthly tax amount is calculated by dividing the annual taxes by twelve (12).
Do You Allow Pets?
Yes, We do allow pets. The costs to have a dog or cat at your property are as follows:
There is a one time $100.00 non-refundable pet fee plus $20.00 per month per pet. The monthly fee shall continue until property is paid off or the pet is gone from the property.