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Lock In Big Profits By Offering Rent To Own Deals
Why would anyone accept a lease option, rent to own deal? Why would you, as a seller/investor look to find rent to own tenants? How can you use this technique to LOCK IN profits that are much greater than would be found in a straight sale? Basically, the advantages depend on which of two end results occur: either the rent to own tenant completes on the property, or they don't. You make money either way! There are MANY people who have less than sterling credit, might not have a long time on the job, or not have a ton of money for down payment, closing, etc. Many people WANT to buy a house - and they expect their credit, job conditions, down payment amount to improve over time. They LOVE the idea of being able to buy NOW, on a rent to own basis. You can help these people out, and be paid handsomely for your efforts. I'll assume a $100,000 property, and you would offer $5-10,000 down, but be willing to take even less, even possibly take monthly payments for the down payment. Because of providing "easy credit", you can increase the price by an amount of between 5 and 20%, depending on how long the rent to own period is, your local market, individual's credit situation, etc. Lets say you buy a property for $90,000 that is worth $100,000 in the open market, and is advertised at $110,000, with 5-10,000 down, and monthly payments of $750 over a 3 year period. Note that ALL of these numbers are variable - whatever works for YOU and your rent to own customer. You have LOCKED IN a profit of $20,000 in 3 years time, less mortgage pay down, with $750 a month to make any mortgage payments in the meantime. Use a mortgage table (it depends on the interest rate charged) but it wouldn't be any more than $100 a month that the mortgage is reduced by. Total profit would be $20,000 less $3600 mortgage paid down, with $750 a month to offset any carrying costs, mortgage, etc - not a bad deal! Should the tenant be unable to complete on the purchase at the end of the term, you can agree to renew the agreement for another period, with a higher purchase price. That sounds like a very good set up for the vendor, but what if the rent to own tenant bails out on the agreement? The majority of rent to own agreements fail to complete, so this is a fairly likely occurence, but can be reduced by picking your tenants well. In this case, you are left with the down payment of $5-10,000, payments that covered the mortgage and carrying costs for however long the tenant stayed for, and they probably took MUCH better care of the property than a normal tenant, as it was THEIR property! You can simply advertise for another rent to own tenant, and collect another deposit, continue collecting rental amounts, and continue carrying the property at no cost to you. You can carry a portfolio of properties with this method - there are virtually no maintenance requirements - its THEIR property, so THEY have to fix it, mow it, weed it, paint it, etc - and you can carry as many properties as you can get financing for, or even "buy" under a rent to own, lease option type of agreement and then rent out to other tenants at a higher purchase price! The options are endless - and it doesn't take a lot of ads to find a TON of willing rent to own tenants! You can set up the deals however you wish, and you can "give them a good deal" by reducing the deposit requirements, or extending the term - you win either way! Andrew Larder Creative Real Estate To receive free info on no or low money down real estate investing, send a blank email to: monopolyinvestments@getresponse.com
MORE RESOURCES: Jake Paul Closes One Of The Largest Real Estate Deals In Georgia History With $39 Million Purchase of 5,600-Acre Ranch Yahoo Finance A tale of two Floridas: Real estate industry torn over DeSantis' push to eliminate property taxes Fox Business These are the forgotten NYC nabes that became real estate hot spots in the last decade: report New York Post Dave Ramsey Saves Listener With $1 Million in Her 401(k) From Becoming a ‘Victim of the Real Estate Market’ Realtor.com Hoby Hanna: Zillow is ‘overstepping,’ limiting ‘creativity’ - Real Estate News by RealEstateNews.com Hoby Hanna: Zillow is ‘overstepping,’ limiting ‘creativity’ Real Estate News by RealEstateNews.com What renters really want | Real Estate Newsletter Inquirer.com Real estate inquiries by wealthy New Yorkers into Florida properties jump 50% after Mamdani primary win Fox Business RNR Real Estate Briefs — Texas & more Realty News Report Real Estate Newsletter Articles this Week: Months-of-supply is higher than the previous 8 years! Calculated Risk Real Estate: Immaculately Maintained & Move-In Ready Home sanangelolive.com NYC Real-Estate Execs Throw Money Behind Adams to Counter Rise of Mamdani The Wall Street Journal Golfer Bryson DeChambeau's Massive Real Estate Investment Has Eaten Up Most Of The $125 Million He Got Paid To Switch Tours Yahoo Finance Buyers wary of surprise HOA costs now have a safety net Real Estate News by RealEstateNews.com Compass to share exclusives — if brokers, MLSs play by 2 rules Real Estate News by RealEstateNews.com 'Married To Real Estate' Canceled After Four Seasons On HGTV, Say Hosts Egypt Sherrod & Mike Jackson Deadline Senior Spotlight: The Grand Junction Daily Sentinel Tampa real estate investment firm under investigation for potential deceptive practices Florida Politics Real estate investors are purchasing more U.S. homes as high prices lock out would-be buyers CBS News Mortgage Rates Predictions for the Next 6 Months: August to December 2025 Norada Real Estate Investments $400 Million Family Lawsuit Involving Prominent Fullerton Real Estate Figures Part 1 Fullerton Observer SERHANT. hits DC; Elliman snags ‘Million Dollar Listing’ star Real Estate News by RealEstateNews.com 2025-2030 Five-Year Housing Market Predictions U.S. News Real Estate Department of Taxation and Finance dos.ny.gov The Michael Houck Real Estate Guide for July 13th Oil City News Real estate sales in Peoria, Tazewell and Woodford counties for July 12, 2025 Peoria Journal Star Top 10 most expensive homes sold in Petaluma last week The Press Democrat OT Real Estate Spotlight of the Week: 1555 Graves Lane The Owensboro Times Mortgage Rates Today – July 12, 2025: Rates Rise Across the Board for All Loan Types Norada Real Estate Investments Here are recent property transfers up to $970,000 St. Albans Messenger Confusing housing stats & real estate nerds Sacramento Appraisal Blog Real estate boss targeted in San Francisco with smear campaign The San Francisco Standard Real estate CEO warns of growing ‘exodus’ as people have ‘given up’ on California — but where are they going? Yahoo Finance Agent Spotlight: Katie Coleman The Grand Junction Daily Sentinel How downtown Natick MA has become a focal point for redevelopment MetroWest Daily News Despite signs of market rebalancing, real estate in this NJ town remains hot. Here's why Bergen Record Here are businesses on the move in Marin, Solano, Napa, Sonoma and Mendocino counties The North Bay Business Journal Top B2B Platforms Transforming Tokenized Real Estate Markets Herald Where are home prices falling most in America? This SWFL community made top of the list Naples Daily News Property transfers: Marion County sales range from $20K to $390K The Marion Star Home prices in Colorado Springs hit record high, even with many homes for sale Colorado Public Radio Blackstone, PSP reportedly among consortium in talks to acquire H&R Real Estate Investment Trust Pensions & Investments Page C4 Post and Courier Page C2 Post and Courier Page C7 Post and Courier Page C6 Post and Courier Page C5 Post and Courier Page C10 Post and Courier Page C11 Post and Courier Page C3 Post and Courier Page C12 Post and Courier Landmark Tax Reform Brings Major Wins for Real Estate National Association of REALTORS® Wichita Falls ISD teams with Bishop Real Estate to sell Kirby Middle School Texomashomepage.com |
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