Buyer up front money

I have a property that I’ve advertised as rent to own and am having trouble getting potential buyers/tenants to go along with the large up front money. I’m asking for 5% of final purchase price. Very few argue about the rent or even the final purchase price, but once I mention the up front money the conversation is over. Any ideas on how to either sell it better or screen my prospects. Maybe I just answered my own question. I don’t mention the up front money in my ad.

Howdy Ben:

The only way to lower the objections is to lower the cash required. What is the price of the house? Also giving credit for part of the rent payment is used often to help sell the deals and also to collect early or on time payments.


Thanks Ted.

The sale price is $117,500 I’ve been asking for $6,000 which is slightly over 5%. I offer $100 credit to sale price for on time payment (which people like). $6,000 seems to stop them.

Your options are to lower it, or hold off until you find someone willing to pay it.

In a lot of cases it depends on your market… it sounds like you might be in a buyers market, where houses don’t move very quickly.

A lot of people tend to try to get closer to 3% than 5%.

Another option is to split it up if you have someone you feel is serious, yet won’t “bite”. Tell them you will take $2k up front and an additional $500 or $1k a month until you collect the $5k. NO, this is not ideal… but it’s a possibility if you feel you’re turning into a motivated seller, lol!


Hey Bed,

Try changing your ad to include the option money. that way it will weed out the people who don’t have or don’t want to put the money up front. also let them know this will lower the final price of the house. this is for them to get a better deal on their mortgage… remind them that you are their helping them to live in a place part time before they buy the place. finding a T/B is like finding a motivated seller… Don’t waist your time on people who don’t want to put any money down for the option. thats why it is key that you put it in your ad!!!

Good luck!!!