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In this video tutorial, the speaker discusses the concept of renting to own, highlighting potential pitfalls. As a lender, they express skepticism about entering into such agreements. Often marketed to individuals with poor credit, the arrangement suggests that rent payments will contribute toward a down payment, which can seem appealing. However, the speaker warns that these agreements can lead to complications. They emphasize the importance of verifying the legitimacy of the seller, as there are fraudulent schemes in the rent-to-own market. Even with a legitimate seller, specific conditions must be met for the rental payments to count as a down payment.
