Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
Be realistic. There's very little money on the table in a typical "rent to own". The option fee might be 3% or some such. The landlord/seller is going to want that cash to go into the deal. Even if they give you half that money you're getting 1.5% of the purchase price.
Sellers who are selling with a rent-to-own situation are either investors who know what they're doing or desperate sellers who are willing to jump through a few hoops to get rid of their property. Only the latter needs your help. It sounds like you're been contacted by someone who wants to buy a house with a rent-to-own deal. Do you have some desperate sellers that would do such a deal and give you a cut of the up front cash?
If not, and you're going to start searching for such a deal, is the tenant/buyer willing to pay you out of their own pocket if you find something?
Wholesaling means finding good deals and passing them along to investors. If you want to deal with retail buyers, or, in this case, tenants, why not just get licensed?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
Be realistic. There's very little money on the table in a typical "rent to own". The option fee might be 3% or some such. The landlord/seller is going to want that cash to go into the deal. Even if they give you half that money you're getting 1.5% of the purchase price.
Sellers who are selling with a rent-to-own situation are either investors who know what they're doing or desperate sellers who are willing to jump through a few hoops to get rid of their property. Only the latter needs your help. It sounds like you're been contacted by someone who wants to buy a house with a rent-to-own deal. Do you have some desperate sellers that would do such a deal and give you a cut of the up front cash?
If not, and you're going to start searching for such a deal, is the tenant/buyer willing to pay you out of their own pocket if you find something?
Wholesaling means finding good deals and passing them along to investors. If you want to deal with retail buyers, or, in this case, tenants, why not just get licensed?
Wholesaler · Salt Lake City, UT · Member since 2009 · 1k+ posts · 401 votes
14y
Sheka
Don't give up yet, there are several people out there doing this everyday. I don't think the world will come to an end if you google the naked-investor site and check their archives as a starter.
Thank you!!!!! Brian. Appreciate it a lot. I just googled and bookmarked the naked- investors site. Thanks foe the lead. I will look into soon!
Its really hard building a buyers list. I have 1 buyer and 3 wholesales looking to do 50/50 split. Only been in it for a month, definitely not giving up, for sure.
I had two Realtor email mme a list of sold property for cash in the last 90 days. I found about a good 20 investors, search the assessors site to see who many bought total and Google's companies numbers and called 10. Non where interest.. but I will keep trying
Atlanta, GA · Member since 2011 · 2 posts · 0 votes
14y
There are several ways to make some dynamic profit from rent to own wholesale, it is all depending on paperwork and agreement. You should offer 6 month, 12 month, and 18 month then move on to the next if they do not purchase offer your wholesale price but list a higher rent until you have a commitment and ADVERTISE IT, SOMEONE WILL TAKE IT !!!
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
14y
Originally posted by N.A N.A:
There are several ways to make some dynamic profit from rent to own wholesale, it is all depending on paperwork and agreement. You should offer 6 month, 12 month, and 18 month then move on to the next if they do not purchase offer your wholesale price but list a higher rent until you have a commitment and ADVERTISE IT, SOMEONE WILL TAKE IT !!!
The old rinse and repeat scam? :roll:
If you do it right and ethically to a qualified buyer who has a chance of performing (seek your own legal advice) you will sell it, have it refinanced and be rid of it!
Are you going to be an investor or a scam artist? Good luck...
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
Originally posted by N.A N.A:
There are several ways to make some dynamic profit from rent to own wholesale, it is all depending on paperwork and agreement. You should offer 6 month, 12 month, and 18 month then move on to the next if they do not purchase offer your wholesale price but list a higher rent until you have a commitment and ADVERTISE IT, SOMEONE WILL TAKE IT !!!
Even neglecting the scamminess of signing someone up and then letting them not perform, you would need to own the house to do the rent-to-own. Sheka's asking how to wholesale a property, not offer a property at a wholesale price. Wholesalers, like agents, make money from the transaction. A rent-to-own or lease/option situation is difficult even in an agent situation because there's little money on the table when the transaction is done. The agents involved might end up taking a note (IOU) for their fees, to be paid when the tenant/buyer actually buys. So, that might be something to consider, Sheka, but then you'll have to wait for money that may never come if the tenant/buyer doesn't perform.
Real Estate Investor · L.A., CA · Member since 2011 · 29 posts · 9 votes
14y
Sheka,
I do lease option flips remotely in a few states. There's definitely money to be made.
If you are looking to do lease option flips (not straight wholesaling), I would look at Adam King's stuff, google [REMOVED]. Michael Carbonare's stuff is great also (He's the link Brian P posted for you).
The sellers don't need to be that desperate in this market. You can market to local "for rent" & fsbo's right off craigslist.