Find a House

We get houses by donation and/or buy them as funds become available.

Find a Renter

Once a house becomes available we seek to find a single parent with children who would benefit by living in a more stable home environment.
We believe the work ethic of the parent is passed on to the children teaching them how to earn their way through life.

Make an Owner

When a house is matched with an eligible buyer we provide a path to ownership.

The Process Helps the Deserving Earn a Home

Many deserving parents are not conventionally bankable.  Others are not in dire enough straits to attract give-a-home-away charities. We fill that gap by investing  in people of good character. Like us, they believe in proudly earning their way.
We work in two ways: 1.) Rent to Own and 2.) Contract for Deed.
How Rent to Own Works
In a rent to own scenario, we find a house, and agree to enter non-traditional financing, where the new renter agrees  to a monthly rental amount. A small up-front option fee that gives the new renter the right to buy the home within a certain time period—usually no longer than three years.
 
A portion of the rent is credited to the purchase price. So, if the rent is $1000 per month, for example, we usually try to have at least $800 of the monthly payment applied to the purchase price of the house. Of course, the purchase price is agreed upon ahead of time and detailed in an agreement.
The Advantages
  • Rent money is going toward equity.
  • A price for the eventual purchase is fixed.
  • The renter is not responsible for property taxes and homeowners insurance.
  • The renter is locked in to more than a one-year lease.
 
The Disadvantages
  • The renter will have to find financing at the end of the lease term.
  • The renter could lose the option money if a loan cannot be obtained.
  • If the renter and the seller have over-estimated the home’s value, the renter could be underwater at the end of the rental term.
  • The property could be encumbered by liens the renter is not aware of.
  • If the renter doesn’t finish the deal the option money will be lost.
  • If the renter misses a payment, the entire deal can be voided.
Contract for Deed
 
With this process, you have an actual contract to purchase the property at a fixed price.
“In a contract for deed sale, the buyer agrees to pay the purchase price of the property in monthly installments. The buyer immediately takes possession of the property, often paying little or nothing down, while the seller retains the legal title to the property until the contract is fulfilled.”
Our preference is contract for deed instruments for those that need bad credit financing or no credit at all. The process is well-regulated and recognized by many as an efficient and reasonable home financing method for those with special credit situations. In contract for deed:
  • The payment is not rent–it goes toward the home purchase.
  • There is no option money on the table to lose.
  • The contract term can be longer than a rent to own agreement, usually ten to fifteen years.
  • The contracts specifies home financing at a fixed interest rate.
What can go wrong
If an unscrupulous owner sells a property that is already encumbered with liens, that can be a problem. In addition, if an owner files for bankruptcy during the contract for deed term, this can cause serious difficulties.
The Solution
A great way to avoid the pitfalls of both rent to own and contract for deed is to deal with a reputable seller.  We insist that the financing process is equitable, legal and fair. 
Of course, one should never enter into a financing transaction without consulting an attorney.  This protects the buyer.
Advantages to the buyer often includes:
  • Bank rate interest or better

  • No closing costs

  • Low or no legal costs

  • No down payment

  • No property taxes

  • No homeowners and hazard insurance

  • No mortgage insurance

The new owner is responsible for timely payments, utilities, maintenance and improvements until deed transfer and thereafter.

The Selection Process

When we have a house available to entrust to a worthy candidate we evaluate criteria such as:

  • Character of the individual -- we invest in people

  • Work history -- stable employment preferred.

  • Rental history, if available

  • References, if available

  • Interview observations -- child behavior, 

  • Bankable -- If so, we refer to a lender.

Our usual offering

  • Current mortgage rates or lower

  • Term of contract tailored to income --usually 30% of net income for period(usually ten years) not to exceed rent currently being paid.

  • Payment tailored to family budget.

  • Assistance in learning how to become a homeowner such a dealing with zoning, maintenance and other issues arising from time to time.

  • Real estate taxes (if applicable) and homeowners insurance covered in monthly payment.

  • Recording of Contract for Deed with County Recorder when necessary protecting the buyer.

 

The follow up

Once done when the family is settled in, we are prepared to offer assistance to those dreaming of a home-based business.  In the long run, the security we build for ourselves is the best security so when life becomes difficult having a plan B is wise.  Starting simply, we can help set up an Etsy or eBay store or dig right in to build a customized website for a longed for home-based business. 
Evolving technologies make it easy to become an entrepreneur so we fill in the gaps where the budding business owner may be lacking.  Grant writing, financial guidance, an optimized online presence and more is geared to teaching new skills. Where appropriate children looking on is educational as well.
Usually, there is no cost to the homeowner because volunteers help out.  Each situation is evaluated based on a probability of success.  We are not devil's advocate's.  We to provide encouragement and professional guidance.

Have a house you no longer need?  Consider donating it so we can turn it into a home for someone deserving a break in life.  Let's talk about it.

Contact Me

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PalPal General Fund

PalPal General Fund

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SPIRIT OF FREEDOM FOUNDATION is a NONPROFIT ORGANIZATION · NON-GOVERNMENTAL ORGANIZATION (NGO)

© 2020 by Rod Miller and the Spirit of Freedom Foundation