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Author Topic: Wholesale vs rent to own property  (Read 9225 times)

Offline tbodley74

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Wholesale vs rent to own property
« on: January 26, 2011, 11:23:25 am »
If I wanted to make money in real estate investing, which of the two would be better for me? Making money from wholesale or making money from rent to own properties? I see people ahve alredy covered how making money from wholesale works, but I am concerned now with rent to own. Which of the two requires more hassle ove the other and more paper work to complete the deal and get paid?

I am beginning to think rent to own may be something I need to take advantage of for myself as for getting my own place to stay. Right now I don't work a full-time job making less than enough to survive on week to week. Then I am swamped with other debts too. Would rent to own not be a good idea considering my situation? How can I make money off the rent to own if I was to get one?

Offline atlaspm

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Re: Wholesale vs rent to own property
« Reply #1 on: January 26, 2011, 01:25:53 pm »
wholesaling will teach you how to get rent to owns at the right numbers.  i would suggest wholesaling if you are new.  rent-to-own is too easy to trick yourself into numbers that dont work in the real world.  do you have a plan for a rto tenant / buyers missing a month payment?

Offline tbodley74

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Re: Wholesale vs rent to own property
« Reply #2 on: January 26, 2011, 02:11:37 pm »
 I don't have a plan for rent to own tenant, which is why I was asking how do I go about making money from rent to own. I mean rent to own is something I am new and inexeperienced in. I was suggesting I use rent to own for my sake as a way of having a place for me to live if I ever decided to get a place for myself. The bad news is I don't have a full-time job making enough money.

wholesaling will teach you how to get rent to owns at the right numbers.  i would suggest wholesaling if you are new.  rent-to-own is too easy to trick yourself into numbers that dont work in the real world.  do you have a plan for a rto tenant / buyers missing a month payment?

Offline atlaspm

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Re: Wholesale vs rent to own property
« Reply #3 on: January 26, 2011, 02:47:33 pm »
i dont really follow what you are asking.  rent to own, when broken down, is just leasing to a tenant with an option fee to buy the property with a certain amount of rent credits applied towards the sales price. 

Offline tbodley74

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Re: Wholesale vs rent to own property
« Reply #4 on: January 26, 2011, 03:16:19 pm »
I don't know a lot about rent to own, but the little I am aware of is the option to buy you are talking about.  I know this may be confusing but, I got the idea from somewhere on one these forums that there is money that can be made from the rent to own. Someone was saying something like get the rent to own property and find a tenant to put in there as soon as possible, which somehow I make profit from the rto property. I wish I could find that post but, I got this idea from some other poster and wanted to know if it is really possible to make money with rent to own.
i dont really follow what you are asking.  rent to own, when broken down, is just leasing to a tenant with an option fee to buy the property with a certain amount of rent credits applied towards the sales price. 

Offline atlaspm

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Re: Wholesale vs rent to own property
« Reply #5 on: January 26, 2011, 03:21:57 pm »
im guessing they are talking about keeping the option fee.  yes, you can make money doing this but you can tangled in a lot more mess than just wholesaling a deal.

Offline tbodley74

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Re: Wholesale vs rent to own property
« Reply #6 on: January 26, 2011, 03:35:11 pm »
That may be what they are referring to.
im guessing they are talking about keeping the option fee.  yes, you can make money doing this but you can tangled in a lot more mess than just wholesaling a deal.

Offline AJ290

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Re: Wholesale vs rent to own property
« Reply #7 on: January 28, 2011, 08:31:10 am »
No entaglement at all, if you know what you're doing.  You assign the deal and you're out of the loop.  It's called a Cooperative Assignment.  Much easier than wholesaling.  Do you think a homeowner will prefer to take .35 on the dollar for their house, (wholesaling), or full retail (Cooperative Assignment)? 
Two favorite sites:  this one, and
The Naked Investor

Offline tbodley74

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Re: Wholesale vs rent to own property
« Reply #8 on: January 28, 2011, 10:25:46 am »
I am placing my bet on full retail. is it really that easy? If it is, I need to try that.
No entaglement at all, if you know what you're doing.  You assign the deal and you're out of the loop.  It's called a Cooperative Assignment.  Much easier than wholesaling.  Do you think a homeowner will prefer to take .35 on the dollar for their house, (wholesaling), or full retail (Cooperative Assignment)? 

Offline AJ290

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Re: Wholesale vs rent to own property
« Reply #9 on: January 29, 2011, 11:24:52 am »
Easy is a relative term.  Compared to laying down hot tar in Florida in July, yeah, it's easy.  Compared to asking a homeowner to give you their home at a wholesale price, yeah, it's definitely easier.
But like any business, real estate requires effort.  Most importantly, it requires that you get out and take action.  Studying and analyzing and trying to know everything is simply an excuse for not taking action.  Do just one deal and you'll be surprised at just how much you know.
Two favorite sites:  this one, and
The Naked Investor

Offline tbodley74

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Re: Wholesale vs rent to own property
« Reply #10 on: January 29, 2011, 07:25:58 pm »
Now that's cool.
Easy is a relative term.  Compared to laying down hot tar in Florida in July, yeah, it's easy.  Compared to asking a homeowner to give you their home at a wholesale price, yeah, it's definitely easier.
But like any business, real estate requires effort.  Most importantly, it requires that you get out and take action.  Studying and analyzing and trying to know everything is simply an excuse for not taking action.  Do just one deal and you'll be surprised at just how much you know.

naomiliz9

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Re: Wholesale vs rent to own property
« Reply #11 on: January 30, 2011, 01:39:04 am »
i think its nice to be in wholesale

Offline Aces

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Re: Wholesale vs rent to own property
« Reply #12 on: February 02, 2011, 03:16:03 am »
You can also wholesale Rent to own property. The nice thing about wholesaling is you can pretty much wholesale ANYTHING as long as it's at a wholesale price  ;). If your just starting out I would say do a few simple, clean wholesale deals before you start doing anything more complicated.

 :beer
« Last Edit: February 02, 2011, 04:25:39 am by Mdhaas »

Offline tbodley74

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Re: Wholesale vs rent to own property
« Reply #13 on: February 02, 2011, 09:21:09 pm »
How long do people usually tend to keep wholesaling in order to be truely rich in the business?
You can also wholesale Rent to own property. The nice thing about wholesaling is you can pretty much wholesale ANYTHING as long as it's at a wholesale price  ;). If your just starting out I would say do a few simple, clean wholesale deals before you start doing anything more complicated.

 :beer

Offline lauraalamery

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Re: Wholesale vs rent to own property
« Reply #14 on: February 04, 2011, 09:45:22 am »
If your financial situation is unstable, I would suggest wholesaling in order to build some cash reserve. Rent to own puts you in a liability and responsibility position and it is riskier in your situation.
You probably will never get rich with wholesaling, but with the proper self discipline, you could build a nice cash reserve and then get into other real estate niches, like Buy and Hold or Commercial, to build long term wealth and monthly cash flow.
Laura Al-Amery is a seasoned real estate investor. Please visit www.lauraalamery.com for Free Training Webinars, Articles and Complimentary Coaching Consultation.

 




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