Northwest Rent To Own/Lease To Own Homes LLC
Call Steph Bradshaw

If you are looking to sell your house fast or you are tired of owning traditional rental properties then this website is for you. I have a large pool of Rent to Own buyers looking to move quickly. I have been able to move properties in as little as 48 hours!

Why Rent to Own?

We are facing a difficult credit market and large inventories of available homes for sale. This has created fewer buyers and strong competition in selling your home. On average, homes are taking 180 days to sell. For the most part, homes that are selling are either bank owned or pre-foreclosures and sell for below value. To move a home quick in this market you have to be priced right, which typically means below the competition! How many thousands of dollars are you losing? With a Rent to Own not only will you have your home sold quickly, but typically at the sales price that you want!

Advantages of Selling Via Rent to Own

By offering a Rent to Own you are marketing your home to a much larger pool of buyers, which will result in selling your home in weeks vs. months.  Since you are offering a huge value and attractive terms to assist the tenant/buyer, they tend to be willing to pay a higher sales price and higher than average rent vs. a traditional sale. Tenant/buyers can easily understand the concept of trading price for time and value. This alone will save you several thousands of dollars!!

When you Rent to Own your home, you receive a non-refundable option deposit. This amount can be as much (or as little) as you wish. The typical rate is 1.5% to 2.5% of the sales price. You will receive a majority of your profits at closing when, and if, the tenant/buyer exercises their option to buy. You also win if the tenant/buyer allows the option to expire since the option deposit is non-refundable.

The earnings potential for the landlord/seller is tremendous since a well-negotiated deal will reap profits at every stage of the game. Review the “Benefits for Landlord/Sellers” for a complete list of benefits.  

How Does a Rent to Own Compare Financially to Selling Today?

Let’s assume you have been trying to sell your vacant home for $300,000 and your monthly payment is $1,600. However, after 3 months in this difficult market you have lowered the price to $285,000. A few more months go by and the only offer you have received is for $270,000 (this represents a 10% drop from your original asking price). When you listed your home a tenant/buyer was willing to Rent to Own your home at a sales price of $310,500 in 2 years. Their monthly payment would be $1,700 with $400/month credited towards the purchase price. They will also pay a $5,000 option deposit, which would be credited towards the purchase price. 

Sales Price $290,350 $270,000
Selling Commissions ($4,355) ($13,500)
Excise Tax ($5,168) ($4,806)
Title/Escrow ($1,200) ($1,200)
Carrying Costs ($1,578) ($4,734)
Net Price $278,048 $245,760 $32,289
Cost Basis $205,000 $205,000
Net Operating Profit/Loss $73,048 $40,760 $32,289
Sales Price $294,105 $270,000
Selling Commissions ($4,412) ($13,500)
Excise Tax ($5,235) ($4,806)
Title/Escrow ($1,200) ($1,200)
Carrying Costs ($1,578) ($4,734)
Net Price $281,681 $245,760 $35,921
Cost Basis $205,000 $205,000
Net Operating Profit/Loss $76,681 $40,760 $35,921
*Disclaimer: The figures used above are for comparison purposes only. Actual results will vary based on actual market conditions and buyers ability to execute the option to purchase.

At the end of 2 years the net selling price to the tenant/buyer would be $294,105 ($9,600 in monthly rental credits + $5,000 option deposit). Assuming your cost basis on the property was $205,000 you would net $35,921 more under this Rent to Own vs. if you had sold the home 2 years prior. What if the tenant/buyer does not exercise the option to purchase? All of the monthly credits and option deposit would be forfeited and you would have a home undoubtedly worth more. Or you can negotiate an extension with the tenant/buyers at newly created terms.

Contact me today! I can provide an analysis similar to the one above with assumptions for your particular situation. I may already have a tenant/buyer ready for your home!

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