For most people, the purchase of a home is the single largest investment that will be made in a life time. Your first purchase can especially be a financial challenge when you need closing costs, the down payment, and an acceptable the credit score to get a mortgage. If you are facing these types of obstacles to homeownership, you probably want to consider how to find rent to own properties. A rent-to-own property allows you to rent a home while partially pay for it at the same time.
How to Find Rent to Own Properties – What Buyers Need to Know
Rent to own contracts are much more flexible than traditional purchase contracts. Some rent to purchase contracts allow the buyer the ability to walk away if they find something wrong with the home. This is a huge advantage for most potential buyers as it allows them to more or less test-drive the home before buying (if the contract allows). If a buyer does walk away from the home under such a circumstance, they usually lose their option fee and any rent credit they have built up. You can minimize your risk by having a home inspection done before signing the contract. When compared to the alternative of buying the house outright and leaving it at a later date, the cost is considerably less.
Discovering how to find rent to own properties enables buyers to build future-equity while increasing their credit score and simultaneously living in the rental property. Renting a home with an option to buy is a great alternative. Renters wanting to eventually own their own home should consider “rent to own” homes (also referred to as “lease to own”, “lease to purchase”, “rent to purchase”, or “rent to buy”).
A rent to own home contract can apply a portion of your monthly rent towards lowering the final down payment of the home. Therefore, every time you make a monthly payment, you are really building equity!
If real estate values are increasing, buyers can lock in a purchase price at today’s value and receive instant equity at the time the home becomes theirs at a later date.
Learn how to control real estate using a piece of paper! Yes! NOT cash! NOT credit! NOT a personal guarantee! An “option” is one of the best but uncommon secrets that I share. Now, is when you want to learn how to find rent to own properties.
How to Find Rent to Own Properties is Nothing New
Although rent to own has been a popular way to purchase a home for several decades, rent to own is still unfamiliar to many people. That’s why I continue to help people understand how this works. I repeatedly explain how to find rent to own properties.
Finding rent to own properties is different than finding traditionally financed sales. Almost always, the seller is motivated to immediately start generating cash flow and finalize the 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.
One option for how to find rent to own properties is talking with landlords that have vacancies. Landlords with vacancies make a good option because they have experience both buying and renting real estate. They consider themselves to be professionals and will often be open to the more creative types of real estate transactions. When the house is vacant, they also have motivation to sell creatively.
Another method is searching for homes in your location of interest and simply asking the seller if they are interested in participating in a rent-to-own agreement. If you take this approach, 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.
You can also talk to real estate agents about how to find rent to own properties. Specifically ask them about vacant houses that have been on the market for 90 days or more. These will be your more motivated sellers that need to generate cash from the property. You may want to be very specific about neighborhoods or you may want to see everything on the market in the local vicinity or even out of town opportunities.
How to Find Rent to Own Properties – The Sandwich Lease Option
I’m clearly a big fan of how to find rent to own properties and lease options. There are many ways you can go about finding these properties. For investors, I strongly recommend the sandwich lease option.
Whether investing or living in the house, be sure you consider the many variables that come with different houses and neighborhoods. If you have a large family, you may want a house with a large kitchen. If you have school age children, you’ll want to know about the school district. You might not want to live under the flight path of a busy airport or next to landfill or factory because of bad odors. Use the methods you learn here to find the right house for you.
Real estate investing does not need to be about owning as much property as possible. It should be about controlling as much property as possible for the least amount of money and risk. That makes the Sandwich Lease Option the most attractive investing method I know of. You can take control of the property for a couple of hundred dollars.
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.
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