Just had that happen with one of my clients.  They had a tax issue that needed several months to clear up and then they could purchase their new construction home.  The problem is that these companies buy the property, lease it for 1-6 months and then sell it for a 5% minimum upcharge.  Business-savvy?  Maybe but, what our issue was that the home didn't appraise a couple of months later at the 5% increase.  

On the flip-side, you can only imagine that re-sellers are not going to get full price for their sale to one of these companies.  The companies are going to hit them with low-ball Offers.  

So, I can't recommend them as I don't know anyone who has had a glowing experience with them!

Damon,

Debe Maxwell illustrated the problem beautifully.  I would not do that!

I haven't and don't know anyone who has. I would be pretty leery myself about the risk

No, and I wonder never suggest a buyer use one. Any buyer considering using one should consult an attorney.

No, I did not use them or did any lease back. It is not popular in my hood. 

Nope have no idea who they are. 

Never have and never will.

Most of them border on illegal at least here in Pennsylvania 

No experience with anything like this. 

I have a client I sell properties to, that does this very thing. It is a numbers game and if they buy right they come out on the good side. I know they aim for a $40,000 spread from what they pay and what the selling price is on lease to own.

Yes, I have used them successfully for clients.  Don't ever use a company that doesn't give a 2-year lease/option, with no penalty for early closing.

I have worked with one recently.  For some clients it's a win - win.  They can lease (in TX) up to 3 years at a predetermined price to purchase. Yes, it will cost them more money, but rent is also  high.  

When the client decides to purchase they already know the price and can set themselves up.  This is good if it's the only way for them to get in a neighborhood /school area they desire.

 If they choose to move they can without ruining their credit. As long as they keep within the guidelines of lease.  

When they get ready to purchase the home if the values are down this will cause an issue for the buyer.  The need to be educated. 

I could go on.. There are good points & bad points.

Yes. www.homelpc.com

I have not.  Debe Maxwell brings up a very good point.  

Nope and know of no one either

Damon Botticelli - nothing of that sort, yet!

Never, not a good deal for my clients.

• no - I never have either

Not popular there. No sucker will sign up as sellers they expect steep increase further....

Damon Botticelli I have not, but they contacted me about the service.

I will not recommend the rent to own service to any client.

Never seen one of those.

No, I steer clear of rent-to-own.  They aren't popular out here either.

No, have not. Sounds risky; use a reputable attorney.

NO.... and I know of no companies that offer that.... 

No, I never have.

No experience with them, but suspect they buy at a discount, sell at a premium, and charge above market rent!

No and never will.

It is a great tool for buyer and seller when done right.

I've not seen these companies or heard of them

nope

Never a legit one, but plenty of scams

no

I do not use them.

No.

Sounds like a risky business model, most rent to own candidates fail to follow through and eventually leave what is left of the home to the previous owner who really does not want it back.

I have never heard of this type of company

I am a stager, not a Realtor, so have no opinion on the question, but it looks like a very large majority do not consider it a viable approach.  This is worthy of careful attention.  You might wish to print out all these comments and provide them to the prospect you mentioned, so they can see the honest opinions of those in the business.  It will help them make their own choice, instead of blaming you later for giving them "bad advice" (in case your recommendation doesn't work out well).