Investors: Whether you are looking to add to your existing portfolio or need an exit strategy to reduce your current holdings, utilizing a Rent to Own transaction is a great option.
How is Rent to Own Beneficial to an Investor?
There are a few specific ways a Rent to Own transaction can benefit investors:
1. Match investor with tenant/buyers to purchase homes.
2. Investors purchase Rent to Own properties from other investors at a discount.
3. Save thousands by selling your existing portfolio via Rent to Own.
1. Match Investor with Tenant/Buyers to Purchase Homes
I am currently looking to match investors with ready, willing, and able, tenant/buyers looking to find a home of their choice that meets their needs. These tenant/buyers have completed an application, reviewed their credit situation with a mortgage broker, determined the value of home they can afford, and understand how long it will take to secure the purchase. I will help these tenant/buyers locate a home on the open market that meets their needs and fits their affordability requirements.
1) Pre-negotiate purchase and sale terms between tenant/buyer and investor.
2) I will assist tenant/buyers in finding a home that suits their needs.
3) Work with the investor to negotiate purchase of property.
4) Investor and tenant/buyer sign Rent to Own agreement (contingent to investor closing on home purchase)
5) Investor closes on purchase of home, tenant/buyers given the keys to the home.
How Does the Investor Benefit?
The investor benefits by receiving a price premium and positive monthly cash flow. The typical sales price to the tenant/buyer is at a 5% premium over the investor’s acquisition cost after year 1 and 10% after year 2. Typically, the tenant/buyers monthly lease payment will be 10% higher than your mortgage payment.
For example, you purchase a home for $300,000 with a mortgage payment of $1,935. The tenant/buyers monthly payment would be $2,128 and they would have the option of purchasing it in 1 year for $315k or $330k after 2 years.
Essentially, the tenant/buyer is paying a premium to use your credit to get into a home of their choice today while improving their credit to eventually purchase the home.
2. Investors Purchase Rent to Own Properties From Other Investors at a Discount
On occasion, I have investors that have entered into assignable Rent to Own agreements that want or need sell before the option date. These investors understand that in order to move the properties quickly they need offer a discount to make the deal attractive to another investor. This is not like buying a traditional rental property. Instead, you are making a short term investment with a guaranteed profit target.. Contact me today for availability of these homes.
3. Save Thousands By Selling Your Existing Portfolio via Rent to Own
Have you considered reducing your existing portfolio? You can save thousands by utilizing a Rent to Own. How? In order to sell a rental home quickly and for top dollar it should be vacant and in market ready condition. This will cost you thousands in holding costs, repair and upgrade costs, and full real estate agent commissions (when using a full service agency). By setting up a Rent to Own through me we can plan for a 1 or 2 year exit strategy, almost eliminating any holding and upgrade costs. You will also save 50% on real estate agent commissions. Let me show you how!
Contact me today to get started!