As a real estate investor, you truly do have an arsenal of options available when it comes to your investing strategy. You may think of rent to own properties as a method best suited to credit-challenged homebuyers rather than savvy investors. The often-overlooked fact by traditional investors is that those soon-to-be homebuyers are contracting with savvy investors that have found a wealthy niche in rent to own properties that pay profits for years to come!
Years of passive income is created from rent to own properties!
Getting Answers to Your Questions About Rent to Own Properties
When you are beginning your real estate investing career, you should be asking plenty of questions. One of the most important questions that beginning property investors ask is which investment strategy is the right one to start with? The answer is found by considering which strategy best fits your current and future needs. Several variables go into making your decision:
- Amount of investment funds you have available or can raise?
- How much do you want to make in profits?
- How much risk do you want to take?
- How fast do you want to pocket your profits?
- Other variables specific to your needs?
Rent to own investing is low/no risk, low/no cost, and brings nearly instant profits!
Rent to Own Properties for Today’s Changing Market
Rent to own properties work well in all real-life scenarios. Especially my favorite for investors – the sandwich lease option. These give you the opportunity to collect reliable monthly rent as a landlord without the hassle of making most of the repairs. Once the deal is in place it becomes a mostly passive income stream. Based on my decades of real estate investing experience, I’m firmly convinced that lease options are the least risky but highly profitable niche for investors.
You want buyers to treat rent to own properties almost as a purchase agreement. Although they are renting, the intention to purchase is very real. Tenant-buyers should have an inspection done before signing the contract. Next, the tenant-buyer needs to take the step of working with a mortgage professional to develop a plan enabling him/her to qualify for a mortgage before the option period expires. This creates the mindset of buying the home. The tenant-buyer takes better care of the home. Your contract specifies they make and pay for most repairs, which saves you the time and money that other landlords anguish over.
At the same time, you collect a higher than market rent with the full expectation of a big profit when the sale closes in a year or two. This is the best of two worlds (being a landlord and flipping houses). The third best part of the rent to own properties world for investors is that the house is appreciating in value the entire rent to own period of time – even if a purchase isn’t completed.
2022 is a wonderful time to be a rent to own investor.
Rent to Own Properties is a Solid All-Around Strategy
Real estate markets change. They go through a well-known cycle. There are hot market conditions, normal markets, and cool or cold markets. Market conditions don’t change overnight but there are leading indicators. We’ve been enjoying the current hot market since about 2012. This is both a sellers’ and landlords’ market. Landlords have been bringing in ever-increasing rents. Rent to own investors are also. Rehab flippers are enjoying ever-increasing sales prices. Rent to own investors do also. In today’s market, rent to own properties will continue flourishing even if the market moves from hot to normal and will continue prospering even when the market eventually cools off.
Rent to own investment properties flourish in all real estate markets.
Something good for tenant-buyers (and rent to own investors) is that almost all of the foreclosures, short sales, job losses, and other credit misfortunes from years gone by are now deleted from credit reports. But that doesn’t make it clear sailing for many homebuyers. As the mortgage market changes, interest rates are again rising. Just as important (as a result of past credit troubles), banks continue requiring people to have better credit and longer employment histories than in past years. This all means that rent to own properties will continue thriving in this evolving environment while other investment strategies struggle.
Why Rent to Own Properties Will Continue to Prosper
Improving credit scores and saving down payments will continue to be a major benefit for tenant-buyers in the evolving real estate market. This will continue to make rent to own homes attractive to tenant-buyers. Rent to own properties provide a built-in mechanism to help people rebuild their credit by making timely rental payments during the contract period. This increases the likelihood that they’ll be approved for a mortgage to buy the home a few years down the road. The lease option fee applies to the down payment. Even if that isn’t enough for the full down payment, the buyer now has time and incentive to save the rest during the option period.
At the same time, sandwich lease options continue to be highly favored by savvy investors…
As an investor, you don’t own it, no one can sue you for it, and no one can put a lien against your assets. This truly is low-risk investing. You have no expenses because the tenant-buyer pays for repairs and maintenance. You pay a very small “option fee” to the seller for control rather than a hefty down payment for a mortgage. This makes it ultra-low-cost. Exactly what you’re looking for in the ultimate low-risk and low-cost investment strategy.
For whom is lease option investing best suited? The short answer is all investors. But beginning investors that are cash poor find it particularly appealing. As does the experienced investor that has maxed out his/her ability to obtain new financing. And every investor in between. Real estate investing is about “controlling” as many properties as you can. It is NOT about “owning” as many properties as you can. This makes rent to own properties the ideal investment strategy.
You want to “control” rent to own house without owning them.
Today is the Day to Become a Rent to Own Investor
We all know how sizzling hot the real estate investment business has been for many years and that it shows no signs of cooling off any time soon – or ever. I know of no other investment strategy that is better than rent to own homes. I’ve been doing this for many decades and have never looked back since day 1.
Getting started early in the New Year couldn’t be any easier for beginning investors. Continuing their hot streak with a proven long-term strategy couldn’t be easier for experienced investors. All you need to do is ACT NOW!
- Your Wealth Building Arsenal.
- Advanced strategies for Buying and Selling with Lease Options.
- Investing In Real Estate with Lease Options.
- Add Personalized Coaching.
- Cooperative Lease Options.
- Expand to Get the Deed “Subject To.”
- Round it all out by Working with Realtors.
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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