All Forum Posts by: Krishna Chava

Great insight! I don't see as much caution as is warranted by long boom that we experienced. 

This is an old thread, but quite an eye opener.. I am planning on starting a company that utilizes good points of this concept: find your own home but an investor buys it for you and leases back with a right to purchase etc. Of course,we  want to be transparent and typical investor here is a individual who is trying to invest in real estate like many of us on BP. My company just connects these two parties.. Any feedback on the idea appreciated.

Hi Chris,

Thanks for the input and recommendation. I am not looking to collect any option money. I want to give renter a right to purchase at market price at end of lease and they would also get credited towards 25% of appreciation if they finish lease term and choose to buy. They can walk away free if they don't want to buy. I am trying to attract high end renters for higher rent properties. I want to discuss if terms I am speaking of are a possibility.

I didn't pull these out of thin air tough.. There is company by name "homelpc" that does this kind of lease options. They even collect option money and operate in Texas.

Krishna.

Can some suggest me a good attorney in DFW area that can guide me how to rent to buy deals? I have gathered there are lot of pitfalls doing these in Texas.

My partner and I want to start a website that connects part-time real estate investors like me with rent to buy clients that have good credit and income. I am targeting people who recently moved to US (high tech visa) OR influx of out of state people who are moving into DFW area for new jobs. Idea is similar to "home partners of america" with some changes:

1) Renter finds a home of his choice from MLS listings. These homes are expected to be newer homes with >200k list price and in move-in ready condition.

2) Renter works with a real estate agent and an investor who will buy the property. 

3) Renter signs a 2-year lease at a price that is linked to purchase price by a calculator formula. (slightly above market rent).

4) At the end of 2 year lease, renter has right of purchase to the property at market price. Renter will also get credited for 25% of property appreciation in these 2 years as a incentive for maintaining 2 year lease. Unlike conventional rent to buy, there is no option fee and none of monthly rent goes into option deposit.

There are more details to the scheme but the gist is this: We want to attract high quality renters to homes in good neighborhoods and create a very low risk investment product that has predictable return for the investor. We will also manage the properties for out of state investors making this turnkey for them.

I appreciate your feedback on this scheme. Obviously, I wouldn't be making a lot of money on the scheme and there probably are much better avenues to get rich quicker in real estate. However, I want to spend some time and effort on this idea and explore if I can scale it up.

Hi Mark,

I have started off looking for income returns above stock market. We have started investing in 2011 and acquired 7 properties, most of them 2 family homes. 

I want to start a website that connects small investors (someone just trying to buy first rental investment) with high quality tenants interested in rent to buy. However, I have read that these contracts would be executionary contracts in Texas with lot of risk. I am looking at if right to purchase at the end of lease term with market price is also an issue. I will start a separate thread.

Hello to all the great folks at bigger pockets! 

I am a part-time  investor and did single and multi-family rentals with a partner for last 5 years. So far, returns have been good and we didn't have major issues. I found these forums few moths ago and lurking around reading all the great information posted here. I would like to join the discussion and start networking.