How to find Rent to Own Properties for Lease Options

The best time to invest in real estate was 20+ years ago. The second best time is now. If you’re young and in your 20s or 30s or 40s, in 20 years you’ll be glad you invested today. Based on my decades of experience, I know how true this is. And I know that leases with an option to purchase are the best low cost way to get started.

Another major advantage is that lease options are the least risky but highly profitable niche for investors getting started (short of being given a house). Although rent to own has been a popular way to invest in homes for several decades, it’s still unfamiliar to many people. That’s why I continue to help people understand how this works. And why I often explain how to find rent to own properties.

Finding these properties is different from finding traditionally financed sales. Almost always, the seller is motivated to immediately start generating cash flow and finalize a sale in the not too distant future. When you do find a RTO seller, you want to learn what that person’s motivation is before drawing up a lease/purchase offer. When you know their motivation, you can more easily put together an enticing offer.

How to Find Rent to Own Properties That Work for You

Today’s market is beginning to lean in favor of buyers. That’s an advantage for investors that know how to find rent to own properties. As the sellers’ market slightly softens, there will be more sellers looking for a way to generate cash flow from a house that didn’t sell quickly. But that doesn’t mean the seller has given a single thought about a lease option arrangement. Very few will be advertising for this opportunity.

What you need to do is find these people and educate them about why a rent to own or lease option is a good cash flow opportunity for them. Once you have their attention, you help them further with a sandwich lease option that minimizes the work the seller has to put into the deal. In exchange for you being in the middle, you create three distinct profit points for yourself.

You want to begin by talking to local real estate agents. Although agents don’t typically specialize in how to find rent to own properties, you need this group, that is the most active in your local market, to know what you are looking for. Agents know sellers with a listing that is getting long in the tooth who need to generate cash flow from the property. Agents also talk to each other a lot. Even if the two or three you talk with don’t have any leads, they probably know other agents that have what you are looking for.

Reluctant Landlords – How to Find Rent to Own Properties

While reluctant landlords are always worth pursuing for lease options, you’ll find even more of these as the sellers’ market softens. Reluctant landlords tend to be people who have already taken action to create cash flow from a vacant property. People who take action are open to other opportunities. You offer to not only keep their rent cash flowing but to also the real possibility of selling the property. A double win for the reluctant landlord.

“For Rent” signs can be an even better opportunity for how to find rent to own properties. These can be either an experienced landlord with yet another vacant house they need to clean and find a new tenant for, or a want-to-be seller reluctantly getting into the landlord business.

Experienced landlords with vacancies have familiarity both buying and renting real estate. They consider themselves to be professionals and will be open to creative types of real estate transactions. When the house is vacant, they also have motivation to sell creatively.

Key to how to find rent to own properties is about knowing the other person’s motivation and offering a creative solution that works for both you and the seller. What’s important is that you have a thorough understanding of what you are offering and can explain it in a way that both the new and the experienced landlord easily understands.

There are Many Ways for How to Find Rent to Own Properties

Another method for how to find rent to own properties is by searching for houses in your location of interest and simply asking the seller if they are interested in participating in a rent to own agreement. Again, be sure to have a solid pitch ready to go. Also, take the time to get to know the seller on a friendly basis. You’re likely going to have a relationship with him or her for a year or two.

These are only a few of the ways of how to find rent to own properties. Others include well-worded advertisements in local classified thrift newspapers, bandit signs, and of course craigslist. The sandwich lease option is the most attractive investing method I know of. You first take control of the property for a couple of hundred dollars. You then put an option buyer in place that takes on most of the homeownership responsibilities until they make the purchase and take on full ownership. The Sandwich Lease Option lets you make a big profit for a small investment.

Besides showing how to find rent to own properties, I’d enjoy showing you all of the other insider techniques I’ve developed over the years. Everything from effectively explaining the benefits to sellers to creatively writing deals that close.

Remember, the best time to invest in real estate was 20 years ago. The second best time is now.

By Wendy Patton

For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.

If you found this information useful, please visit again soon at wendypatton.com.

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How to Find a Seller Now

There are always sellers in the marketplace. There might not always be a lot of sellers motivated to sell on a lease option agreement but there will always be more than you need if you know how to find them! Today, the broad market is slowly changing from a seller’s market to a buyer’s market. This means more opportunities for investors.

This is the right time to learn how to find a seller now. There are several ways to go about this and if you’re an experienced investor you probably already have resources in place. If you building your investment business, these tips help you stay on the right track.

The Basics of How to Find a Seller Now

For the most part, investors aren’t looking for traditional “retail” houses. Investors are looking for properties that soon-to-be homeowners aren’t normally interested in. Investors want distressed properties and discount properties. Still, different investment strategies target different properties within these subcategories. For instance, fix and flip investors mostly target distressed properties. Properties that can be bought cheap, repaired, and flipped for a big profit.

Lease option investors are looking for a different property type. Sandwich lease option investors are not going to own the property. They don’t want to invest a bunch of money in repairs. How to find a seller now for a lease option generally comes down to the equity the seller has in the house. You are looking for either one of these conditions:

  1. The seller does not need their cash out of the house.

– Or –

  1. The seller does not have any equity in the house.

The other two common conditions that usually go along with these are that the seller needs to leave the house or the house is already vacant. These don’t guarantee the person will be interested in a lease option but if these conditions don’t exist, the seller isn’t likely to consider a lease option. If you don’t have these conditions, save yourself a lot of time and effort by moving on to another prospect.

How to Find a Seller Now Means You Offer a Solution

How to find a seller now means that you need to be offering the seller a solution that she/he is looking for. Your offer is what I call “Good Debt Relief”. You must understand what you bring to the table so that you can fully explain it to the seller. She/he needs to understand what’s in it for them.

Good Debt Relief is pretty simple. The seller has an already vacant or soon to be vacant house that they have to make mortgage payments on. The house is not producing an income. The debt payment is a big rock they have to carry without relief. When you offer a lease option, you offer an income stream to pay that debt. That income stream is Good Debt Relief.

You might think that severely limits the number of sellers interested in a lease option. It does thin the crowd but that’s a good thing because this enables you to focus your energy and efforts to sellers that are much more likely to close the deal. And there are a lot more candidates out there than you might first realize.

Good Lease Option Seller Candidates

How to find a seller now has an abundant number of candidates. People or couples that own two or more houses but only live in one of them make great candidates and there are more than you might think. How many people in these situations do you think you can find?

  • Recently or are about to transfer to a job in another city.
  • Recently married with the bride and groom both previously owning a home.
  • Built or bought a new home without selling their previous home.
  • Inherited a home in another city or the person has no need for the inherited home.
  • Landlords that are burned out from dealing with calls about a plugged kitchen sink on Thanksgiving from tenants who never pay the rent on time.
  • Landlords that are ready to retire.
  • Vacation homes that are not used or the owner retired to it and has a vacant second home back in the city.
  • There are many others.

Do you see the common thread here about how to find a seller now? That thread is that these people own at least two homes but are living in only one. They probably don’t need the money because they can afford to pay two mortgage although they probably don’t want to pay two mortgages.

These make natural headlines for your marketing campaign to find qualified sellers. Especially in free classified ads where you can run multiple advertisements with different headlines. Most of these people won’t see themselves in classified ad headlines reading, “Lease Option Sellers Wanted” or “Looking for Seller Contracts”. However, they do see themselves in more targeted headlines like “Do You Want to Sell Your Second Home?” or “Do You Want to Sell Your Rental House?”, or “Stop Paying Two Mortgages”.

There are still many, many possibilities for how to find a seller now. Others worth considering include real estate brokers, estate lawyers, maybe even mortgage brokers who turned down a loan for a second home. Real estate brokers can easily be shown how to find a seller now. Your local MLS probably doesn’t indicate if a house is vacant but brokers usually know or can find out. You can also look at interior photos on MLS to see if the furniture has been moved out.

Do you want to know more ways of how to find a seller now? The entire second category of “The seller does not have any equity in the house” wasn’t even covered here. To learn more about how to find a seller or other real estate investing strategies please visit my website www.wendypatton.com or email info@wendypatton.com.

What you need to do is TAKE ACTION NOW!

By Wendy Patton

For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.

If you found this information useful, please visit again soon at wendypatton.com.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

What did you think of this article? Please leave a comment below.

 

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