I wanted to see what other people think of this idea.
From one of the many REI Newsletter’s I am signed up to recieve one of them mentioned that a lot of people say it’s hard to find deal’s with so many Investors around.
This is what he said to do…
on Sunday morning, pick up the real estate section of your newspaper and look up the houses for rent in your target area. Notice he said “rent”…not “for sale.”
Then he says…
Simply pick a number, call the owner of the house and say, “I saw your house for rent, and I was wondering if you’d be interested in doing a rent-to-own.”
That’s it.
Don’t say another word.
He then says "you’ll have at least 3 houses you can pick up on a simple rent-to-own with tons of built in profit.
Then, you can flip these houses for instant profit or lease them out for cash flow.
How can you flip or rent these properties if your supposed to be renting them yourself? What kind of investing is this called?
Thanks!
Regarding my post above-
Is this what a lease option is? (renting to own)
And if it is, when you do a lease option, does the contract state somewhere that it can be purchased (by me or someone else if I flip it ) anytime during the lease period? (Is that how I could flip it?)
Sorry I’m confused with this…
Nobody has anything to say???
L/O is “rent to own”
I never buy with a L/O
I sell with a L/O I give them a 2year 364 day lease with an option to buy at what I feel the property will be worth in 3 years.
Bruce
Ok, Thanks.
How do you detirmine what it will be valued at in 3 yrs?
I get in it SUB TO so they pay me to take their home.
If it comps at $100,000 I will pull it out of the air and say $116,900. or $113,900 or $119,300 . It kind of depends on the projected appreciation in your area.
Don’t forget that the property will need to be appraised when it is sold.
Bruce
I need to do more reading about sub2 but I thought whatever price was agreed upon at the signing of the contract was their sale price when/if they exercised their option.
Are you saying at the end of their 3 years you have it appraised and that is the purchase price?
Another thing I don’t understand with what your saying is if you are getting it sub2, how is it that they are paying you to take their home?
I thought that is just taking over their payments, are they actually paying you or do you mean by any equity that is in the property is how your getting “paid”?
Sorry if these are ignorant questions. Like I said I need to do more reading about this.
Thanks!
In L/Oing it is the price agreed upon at the signing of the contracts.
When taking a home SubTo a lot of times there is little or know equity in the home. It might only be two or three years old. So they need to pay me to take there home.
If they went through a Realtor it could cost them up to 10% of the price of the home. That comes out of their pocket at closing all at once, when ever that is. 6 months or a year later. I can relieve them of there burden today for half that. if they do not have cash right now. I will take monthly payments.
Bruce
I see. Thank you very much for explaining! That make sense now.
:-[