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

---

First Impressions Will Sell Property Fast!

First impressions count, buyers will have already formed an impression... Read More

Finding a Great Listing Agent for Your Home: 8 Tips

If you've decided to list your home, you'll be paying... Read More

Talk to a Lender Before You Sell Your Home

If you're looking to sell your home quickly, and for... Read More

Real Estate Development Feasibility Study (Income) - $1.2 Billion Developer Tells You How To Do One

There are two sides to a feasibility study and in... Read More

Real Estate Wealth Protection Through Short Sales

Is a sharp correction in store for the real estate... Read More

Home Staging: How to Make Your Tract Home Stand Out in the Crowd

Home sellers who wish to market their property in development... Read More

Cutting Edge Real Estate, Is the Bubble Ready To Burst?

Of course, this is the big question in real estate... Read More

Investment Real Estate Secret: Buy a House Today, With No Money Down

If you've read my article "Purchasing Property With No Money... Read More

Things To Consider Before Buying a Condo Hotel or Resort Residence

Resort home ownership, such as condo hotels and fractional shares... Read More

According To Sellers, Silence Isnt Always Golden?

When trying to sell a home, silence isn't always golden... Read More

Sell Your Home Without a Realtor and Save Thousand$$$

A typical real estate commission on a $234,000 home (national... Read More

5 Factors of Selling a Home

There are five major factors to consider when selling a... Read More

Vacation Homes Are Becoming A Reality For More Homeowners

Whether it's a lakefront cottage or a log cabin in... Read More

Property Investing Secrets 7

Property Investing Secrets:How Buying Real Estate Is Like Planning a... Read More

Why it is Important to Hire Just One Real Estate Agent to Buy a Home

In our fast paced and frantic real estate market, buying... Read More

Virtual Agent? Online Real Estate

When preparing to sell a house, you should always consider... Read More

How Much is that House in the Window?

With the recent release from the UK's biggest mortgage lender,... Read More

How to Sell Your Home Without a Real Estate Agent

Considering the rapid rise in home prices over the past... Read More

Seven Tips in Choosing Maui Income Properties

Aloha! If you are interested in choosing a Maui income... Read More

Real Estate Investing: America Rents

Most people in America rent a personal dwelling!Just think how... Read More

You Dont Need Health Insurance!

Seems almost every situation in our lives is centered on... Read More

How I Became a Real Estate Investor

Recently I closed on the sale of two homes. They... Read More

Decorating to Sell a House by Meeting Three Key Needs

Specific marketing campaigns are no longer just for automobiles and... Read More

California Home Seller Disclosure Duties

Property Condition - Seller's What to Expect During the Inspection... Read More

Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less

For decades, the real estate world turned in a predictable... Read More

Tax Deferred Exchanges of Investment and Business Real Estate

The Primary Residence taxation, the Residential Replacement Rollover, Sec. 1034... Read More

Searching for CLUEs: What Homebuyers & Sellers Need to Know About Homeowners Insurance

Homebuyers and sellers should be aware about issues involving homeowners... Read More

Top Tips for Buying and Selling a Home

BuyersLooking for a home-Use Internet for overview of properties, communities,... Read More

How to Make a Home for Sale Flyer Using Marketing Psychology

Want to sell your home right away, for the highest... Read More

10 ?No Money Down? Ways to Buy Real Estate

Turn the Television on any Sunday morning and you'll find... Read More

Hiring A Contractor - 10 Mistakes To Avoid

A very smart attorney I know paid $7,000 for a... Read More

You Wanna Get High With Me?

Being a home inspector is great. It's fun, it's interesting,... Read More

Feel At Home Faster After You Move

Moving to a new community can be a great adventure,... Read More