Click to Book a Coaching Call

Why we Love offering Rent to Own Homes

We ❤️ Rent to Own!!!

I will preface this post by saying that a lot of people (IMO) don’t do rent to own the correct way. They don’t set up their tenant buyers for success. They are not properly trained in how to execute the deal from start to finish. A small down payment will not get them to home ownership!!

You get paid 3 ways:
1️⃣ Non Refundable Option Deposit
2️⃣ Monthly cash flow
3️⃣ Backend pay day when they purchase

AND you’re helping people own a home when over 80% can qualify right now. 💗

🟡 We switched our rentals to a rent to own business in 2017. Since then we have had 3 families get to the second closing table and actually OWN the home. How amazing is that?! (Swipe!) We received a nice back end check from the remaining equity of the homes.

🟡 Tenant buyer applies for a property, fills out an application & pays for it through Screen the Tenant.

🟡 Once approved we see how long it will take them to be mortgage ready and if they need credit repair, they sign up for that with our screening company.

🟡 Next they get their Non-refundable Option Deposit (around 10% of purchase price) and first month’s rent and head to the attorney for a close. Even in a title state like PA we still have them close with an attorney!!! Who better to go over all the important details than a lawyer? The tenant buyer pays for that. (Around $375).

🟡 Now we don’t have any responsibilities of typical land-lording, which makes doing these deals at a distance much easier! No maintenance or repairs. Set up electronic rent collection and go.

🟡 That NROD (the non refundable option deposit) is yours to keep. Have it on record and you will show it down the road as going towards the purchase of the home. But the money? It is yours to do whatever you want! 💰

🟡 We keep the rent as low as possible and anything over the rent can be added to their NROD. This is not a seller finance deal, we do not hold escrow.

🟡 Tenants have renters insurance. Owner (you) has the homeowners insurance. Do not list them additionally insured if they are RENTING.

🟡 Find a loan officer who understands how to work with your tenant buyers & get them across the finish line.

How would you spend your big check?? 💵