Edina, MN Rent to Own Wholesale Deal

2 Replies

Investment Info:

Single-family residence wholesale investment.

Purchase price: $325,000
Sale price: $331,500

This was a Wholesale Rent to Own property. Tenant put down $6500 and paid $1900 per month on a 3 year lease.

What made you interested in investing in this type of deal?

Very big property. Nice place for a family to Rent to Own.

How did you find this deal and how did you negotiate it?

Contacted owner from a craiglist post. The owner had it for rent.

How did you finance this deal?

Rent to Own Wholesale deal. No money into the deal.

What was the outcome?

Tenant buyer put $6500 on a Rent to Own contract for 3 years.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

@Eric Janson Sooo..... if I am reading this correct, it's a sandwich deal, not a sale or a wholesale, sandwich, correct? 

And, you are clearing $6,500.00 on the sale, over 3 years?! That's a crazy huge amount of liability for a pittance of potential profit. I wouldn't ever let a client do such a deal, never ever. I require a minimum $10k down on a terms deal and never ever allow rent-2-own, that 100% pro tenant and double negative for seller. 

On a scale of 0-10 I would rate this a -11 if being honest. 

This was strictly a wholesale deal.  Not a sandwich deal.  I was in an out in a month. 

I disagree with your take on it being a double negative for the seller.  It depends on how you set it up. 

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