Encore presentation for Than Merrill - Star of A&Es “Flip This House” - Tonight

Tuesday’s webinar was a blow out! So many signed up that many of you missed the webinar and emailed me begging me to send you the replay information! It was such a popular call and the feedback was so great that I decided to ask Than to come back again for a special encore presentation TONIGHT, July 30th at 8PM EST.

This is your last chance so don’t miss it. Sign up now!

To register for Than’s “How to Automate your Marketing and Find Tons of Motivated Sellers and Buyers” go to:

https://www2.gotomeeting.com/register/788541282

Wendy Patton interviews Than Merrill tonight

We only have a few lines left for tonight’s webinar with Than Merrill at 8PM EST so don’t miss out! The response has been absolutely amazing for tonight’s webinar!

Than has agreed to do this webinar for us on his “Top Secrety Strategies for Finding Killer Real Estate Deals.”

He has also agreed to go over his top marketing strategies for finding buyers. He is currently bringing in over 130 buyer leads a month using the techniques and systems he will share with you tonight!

Plus we will be giving out some awesome gifts for everyone who attends!

Click the link below to Register for this event:

https://www2.gotomeeting.com/register/730483594

I look forward to having you on the webinar!

Wendy Patton

Lease option investing and rent to own trainer

P.S. Everyone who attends the webinar is going to receive a FREE video training on “how to Raise Money from Private Investors” for your next real estate deals! You will also get a copy of a custom Power Point presentation you can use when you meet with private lenders!

P.P.S. Than and I will also be raffling off two seats to a 4 day Intensive Marketing & Wholesaling training to one lucky person!!! This is a $3,500 gift so don’t miss your chance!

Click here to register:

https://www2.gotomeeting.com/register/730483594

Webinar with A&E’s Flip that House star Than Merrill

Tuesday, July 28 at 8:00PM Eastern I will be interviewing one of the top real estate investors in the nation, Than Merrill, to find out all his “Secrets to Finding Killer Real Estate Deals.”

Many of you may know Than as he is the star of A&E’s hit TV show “Flip this House.” Than is one of the nations most successful investors and is known as the “Marketing Maven” when it comes to finding under market value real estate. The marketing strategies he will share with us on this webinar will drastically change the future of your investing career.

Plus, we will be giving out some awesome gifts for everyone who attends! Why, because I love you…that’s why!

Click The Link Below To Register For The Event:
https://www2.gotomeeting.com/register/730483594

Here is just a short list of what Than and I will be covering on the webinar…

• How to find deals 30% to 50% below market value consistently
• The secrets behind finding the BEST lists of motivated sellers
• How to get any marketing campaign done for you
• How to build your buyers list and qualify buyers so you don’t have to worry about getting properties sold in today’s market
• How to be successful even if you are only investing on a part time basis
• How to jumpstart your real estate investing career and pick up a check for $20,000 in the next 30 days

For those of you who have never heard Than speak before prepare to be impressed. He has one of the best business minds and will really show you how to get your first deal done in the next 30 days as well as grow a highly profitable business.

Click The Link Below To Register For The Event:
https://www2.gotomeeting.com/register/730483594

We look forward to having you on the webinar!

Wendy Patton

Lease option and Rent to Own trainer

P.S. Here is a list of the killer bonuses…remember we only have 250 lines and I guarantee you they will be filled so register right away so you don’t miss your chance!

Bonus #1: Everyone who attends the webinar is going to receive a FREE Video training on “How to Raise Money from Private Investors” for your next real estate deals! You will also get a copy of a custom power point presentation you can use when you meet with private lenders!

Grand Prize: Than and I will be raffling off TWO seats to a 4 Day Intensive Marketing & Wholesaling training to one lucky person!!! This is a $3500 dollar gift so don’t miss your chance!

Rent to Own - Don't compromise on tenant selection

When it comes time to place a rent to own buyer in a home, sometimes the home owner or the lease option investor feel pressured to get someone in as quickly as possible. This usually happens because the mortgage payment for your home has become a financial burden.

Even if that is the case, you still need to make sure that when you screen your rent to own buyer that they meet the criteria on your qualifications list (by the way, you should always have your qualifications list in writing). Failing to make sure that rent to own buyer meets these qualifications can cause you problems for two reasons:

1. It could be a violation of Fair Housing Law - trust me, you don't want to go there.

2. You could end up placing a bad lease option tenant and have to evict them later. Don't go by gut feel. Approve a person because they meet the criteria on your qualifications list.

Want to learn more about rent to own buyer selection?

If you are a lease option investor read, "Investing in Real Estate with Lease Options and Subject To Deals"

If you are a real estate agent or home seller read, "Rent to Sell"

What makes a good rent to own seller?

If you are a real estate agent do you have any listings that aren't selling? Has the seller blamed you for it? Don't you hate wasting all that time and money trying to sell listings that you can't find buyers for?

Some of those sellers would make great rent to own sellers and that way you'll still get your full commission instead of losing the listing or just finding a renter.

So what makes a good rent to own seller?

1. When their home has been on the market for 90 days or longer - slow selling homes can be good candidates for rent to own because sellers become more open-minded to other ideas as they see their home languishing on the market.

2. Seller has already moved into their new home - whether the seller bought or built a new home and the old one hasn't sold yet, they have two homes and two house payments. No seller wants to pay for a home to sit empty for very long

3. Relocated to a new area - if a seller has relocated and their old home hasn't sold yet

4. New marriage - if the newlyweds were both homeowners and they move into one house and are selling the other

5. Owe as much on their home as it's worth - this lack of equity makes it difficult for a seller to sell their home outright because they'll have to bring money to closing. However, a rent to own home may bring a price premium that can cover some or all of this difference. Plus, the additional time of the rental period may allow the seller to pay down more principal on their mortgage

6. Landlord selling a rental property - landlords can make great rent to own sellers since they are already used to the idea of having tenants. Also, because the home isn't their primary residence, they aren't likely to need the money from the sale right away

7. Inherited the property - recently inherited property is usually sitting empty and the owners may not need the money right away. This works well with one or two heirs, but when you have many it tends to get more difficult to get them all to agree to anything

8. Vacation home or 2nd home - because this isn't the seller's principal residence, the home may be sitting empty. Getting rent to own buyers will give the seller some cash each month that they don't have now.

Remember, rent to owns or lease options are a great option for sellers who have trouble selling their home conventionally.

Lease Options - How to get more in rent

Market rent is what it is and you can’t change that as a home seller, lease option investor or real estate agent. You have a small amount of wiggle room but if you are asking too much in rent on your rent to own home it won’t rent. I can’t tell you how many real estate agents I talk to about doing a rent to own just assume the mortgage payment of the seller should be the asking price for rent.

Unfortunately in some markets the market rent just won’t be enough to cover a high mortgage payment. The seller has to understand that if their entire payment is more than the rent they will have to cover the difference.

So what can you do if the seller can’t afford to cover that difference each month? Are your rent to own sellers out of luck? Not necessarily. Here’s an idea to get buyers to pay more in monthly rent, which will work if your seller has equity in their home. When you are advertising the home, advertise for market rent. Once you find a buyer that wants the home ask them, “Would you like to earn 50% on your money?”

They’ll probably say, “Yes!” or “What do you mean?”

I would respond by saying, “If you pay $200 more in rent each month, meaning $1,400 instead of $1,200, the sellers will give you that $200 each month as an option credit on this home, plus an additional $100 option credit. This would give you a 50% return on your money and help you buy this home much more quickly by building up option credits. Would this work for you?”

This gives your seller an extra $200 per month to cover the mortgage payment, but they will credit it back to the rent to own buyer at closing. If the buyer doesn’t purchase the home, the seller keeps the extra money.

Rent to Owns - Key Points to Negotiate

Whether your are a lease option investor, a real estate agent or a home seller or home buyer, anyone involved in a rent to own transaction has the same points to look out for in negotiation. I’m not going to cover all of the negotiation points here but I’ll focus on a few of them.

1. Monthly option credit - This wold be a portion (or all) of the monthly rent which is credit towards the purchase price ONLY if the tenant-buyer exercises the option to purchase. This credit is in no way mandatory, but can be very helpful to the buyer when it comes time to purchase. If a seller is granting option credits they need to have enough equity in the home to cover them

2. Monthly rent amount - Typically rents are priced at market rent or a little bit more on a rent to own transaction. However, this amount can always be negotiated to make it better for you.

3. End purchase price - the amount the buyer will actually pay for the home once they exercise the right to purchase. This final amount will determine the buyer’s new mortgage payments. It will also reflect the net proceeds for the seller. Most rent to own sales command a slightly higher purchase price, possibly as much as 5% to 10% more depending on the strength of the real estate market in your area.

Want to know more about key points to negotiate in rent to owns?

If you are a lease option investor you’ll want to read “Investing in Real Estate with Lease Options and Subject To Deals”

If you are a home seller or real estate agent you’ll want to read “Rent-to-Sell”

If you are a home buyer or real estate agent you’ll want to read “Rent-to-Buy” (coming soon)

All of these books are available on Wendy Patton’s website

Home Sellers - How Rent to Own Benefits You

Here are some of the reasons rent-to-own can be beneficial for you as a home seller:

1. Higher Purchase Price - Rent to own sales typically command a price premium over traditional sales. The buyer is paying extra for the flexibility he receives by not having to do an outright purchase immediately.

2. Higher Rent - You may be able to charge more for monthly rent in a rent to own than you would for just a straight rental.

3. Cash Flow - If your monthly payments are less than the monthly rent, the difference goes in your pocket.

4. Option Fee - This upfront fee paid to you by your buyer is what secures the purchase price down the road. If the buyer closes on the home, it would be applied towards the purchase price. If the buyer elects to not purchase the home, the option fee is forfeited and still remains yours. Either way you win.

5. Eliminates the Burden of the Mortgage Payment - If you have already moved on to your next home and your old house is sitting empty while you try to sell it, then you are saddled with TWO mortgage payments. I feel your pain. Ouch! Placing a rent to own buyer that pays that extra mortgage can take away your pain.

6. Getting Your Home Sold Faster - In slow selling markets offering your home as a rent to own can help you get a buyer into the house much faster. This option will open up your pool of buyers significantly.

7. Getting Your Home Sold at All - If your home is just flat out not selling for whatever reason, offering it as a rent to own may be the only way to get it sold.

Want to learn more about selling your home as a rent to own? See Wendy Patton’s book, Rent to Sell, Your Hands on Guide to Sell Your Home When Buyers Are Scarce.

Rent to Own and Credit Repair

Let’s face it, as a rent to own investor having a good credit repair company on your team is a must. The vast majority of tenant-buyers NEED to improve their credit before they can qualify for a mortgage. Especially in today’s mortgage climate.

Another important reality is that we as a rent to own investor cannot leave credit repair up to the rent to own buyer. If you simply tell them to improve their credit so they can buy at the end of the option period what do you think will happen? Nothing. They’ll never get around to it. Mostly, despite their good intentions, it will be because they don’t know what to do.

With as many years as I’ve been doing lease option or rent to own investing deals I still don’t know everything there is to know about credit repair. I hosted a webinar recently with a credit repair specialist and I learned a lot! One of the reasons I don’t know everything is because credit repair changes. Instead of trying to have to constantly stay on top of all the changes and then coach my rent to own buyers through every step I find it to me much easier, much less time consuming to simply require them to enroll in a credit repair program at the onset of the option period. If it becomes a requirement you are going to have a much higher success rate. And they’ll thank you for it! Rent to own buyers will be grateful because you helped them get through the steps they needed to homeownership.

If you want to learn more about credit repair, watch the webinar I was talking about. Also if you are looking for a reputable, quality credit repair company (because, trust me, not all of them are) - I recommend www.renttoowncreditrepair.com

Becoming a Realtor - the best reason

I did a big post yesterday on becoming a Realtor, looking at the pros (many) and cons (next to none in my opinion). But I left out one of the biggest, most important reasons for becoming a real estate agent when you are doing lease option investing - Networking.

Lease option homes are by and large pretty homes. The pretty home market is pretty much controlled by real estate agents. When I say controlled, I mean that they are the ones doing the massive majority of the listings for these homes. With that being the case you need to make real estate agents your friends to get deals in your pipeline. Becoming a Realtor gives you an inside track. For one thing you can start networking with other agents in the brokerage where you have your license.

Then you can expand out to other offices from there. Just ask people in your office if they know of other agents who might have a home that isn’t selling where the seller told the agent that if it doesn’t sell they might have to rent their home. Those agents are bound to know other agents that have mentioned something like that to them.

In lease option investing all it really takes is a handful of good networked real estate agents to keep your deal pipeline full.

I recommend you become licensed and consider Keller Williams as an office for you. I will gladly sponsor you and also assist you in working as a Realtor. I can help you get started in the right direction. I have been licensed over 20 years. Let them know I am your sponsor and we can work together to help you as an investor and also to assist you to recruit other investors (Realtors) in your team. Please email me to find the closest Keller Williams office to you. Wendy@WendyPatton.com or call me at 248-394-0767 and I will assist you in making a great choice for your future.

Becoming a Realtor

I became a licensed agent in 1986. Why? I had started to invest in real estate and realized that I had to rely on a Realtor to get me in to see some of the properties I was interested in purchasing, and then I had to wait for them for the comparables. Comparables (aka Comps) can best be found on the MLS (Multiple Listing Service). Only Realtors have access to the MLS in most parts of the country. There are other websites and systems that have comparables in some parts of the country, but nothing is like the MLS. That is where the true sales information lies. After I purchased my first several homes, I decided that I did not want to wait for or rely on a Realtor to buy and sell my own properties.

Becoming a Realtor, as a real estate investor, will give you many advantages. There are no disadvantages that I know of. Investors tend to be adamant one way or the other about being a licensed Realtor. I am definitely on the side of becoming licensed. Being licensed has been one of the best tools that I have as an investor. Being licensed allows access to your database of ‘comps’ or comparables. This is the data you need to buy and sell real estate – with good information. If you have a great Realtor, or you can get access to the MLS (Multiple Listing Service) without being licensed, great, but I still think it is better to be licensed than not. I personally like to do my own comparables. (maybe that is the controlling part of me J ).

Some investors say it gives them more liability to be licensed. I have two answers to that:

1. What are they doing to create liability?
2. Don’t they think a judge is going to consider them as an ‘expert’ when they find that you buy and sell real estate for investment purposes?

Some investors say that sellers won’t sell to you if you are licensed. I find the opposite is true. Most sellers are happy that I am licensed and “know what I am doing”. If you are licensed you will also get commission on each deal you buy or sell (if it is listed on the MLS). Every office is different on how they split the commissions received by the office.

My recommendation is to GET LICENSED!!!

When becoming a real estate agent you must work directly under a licensed broker. To become a broker, each state has their own requirements. I have been a broker since 1997. When you are a broker you can have other Realtors work underneath you, but becoming a broker should not be the “be all end all”, unless you really choose to own a real estate company. There are many expenses when you own your own office.

As I travel all over the country, I am asked frequently how to locate a good broker. This is always an important part of working as a licensed Realtor. You will want to work in an office environment that encourages creativity, investing and entrepreneurship. You will also want an office that provides exceptional real estate training. The company that I have found to be the best overall, in all states, is Keller Williams. I personally owned 4 real estate offices prior to joining Keller Williams. I am now an associate broker in a Keller Williams (Keller Williams) office, as well. Why? For the above reasons. Keller Williams has a fantastic training program along with several other key ingredients. Keller Williams is open and focused on real estate investing and entrepreneurship. The founder of Keller Williams, Gary Keller, along with Jay Papasan and Dave Jenks, co-authored several books on real estate investing. I was featured in their book, “Millionaire Real Estate Investor”. Gary Keller also endorsed my book “Investing in Real Estate with Lease Options and Subject Tos”. Much of my investing strategies and techniques have personally been focused around working with Realtors. Being part of an office will give you access to listings and relationships with other Realtors.

Keller Williams hosts a radio show on Mondays called “Millionaire Mondays”. I have been on that show many times now. Keller Williams is the fastest growing real estate company in the U.S. and they are currently the 4th largest, with over 600 offices. Gary Keller invented a system that no one else has been able to reproduce. There are many companies that have tried. It is essentially a multi-level marketing company. Each person you recruit becomes part of your “downline” and you start to receive a small part of the commissions they earn as well as the ones you earn. It does not matter what office (market center in Keller Williams) they are a part of, you will be rewarded on who they bring in and how much they buy or sell. It is a fantastic approach to becoming a Realtor which gives incentives for Realtors to recruit other Realtors.

Some of the best advantages to becoming licensed are:

1. The training that comes with becoming a Realtor – especially in Keller Williams
2. Access to the MLS – to get comps
3. Part of the commission on each purchase or sale you make
4. A network of Realtors (many opportunities might come to you before anyone else even knows about them)

I recommend you become licensed and consider Keller Williams as an office for you. I will gladly sponsor you and also assist you in working as a Realtor. I can help you get started in the right direction. I have been licensed over 20 years. Let them know I am your sponsor and we can work together to help you as an investor and also to assist you to recruit other investors (Realtors) in your team. Please email me to find the closest Keller Williams office to you. Wendy@WendyPatton.com or call me at 248-394-0767 and I will assist you in making a great choice for your future.

Pre-Paid Legal for Selling on a rent to own

Pre-Paid Legal Services is one of the most overlooked, yet beneficial tools when selling on a rent to own. You will want to consult an experienced real estate attorney if there are any legal questions connected to the sale of your property that you are unclear about. For example, what are you required to disclose about the property under your state’s laws? What should you do if there are problems with illegal construction, permit and zoning issues, or with the deed? Consulting with a knowledgeable real estate lawyer before problems arise can save you a lot of money and trouble in the long run.

As a rent to own home seller Pre-Paid Legal Services is not only an outstanding tool, but also a necessity. If you have never needed legal representation for your personal matters or business, believe me it is just a matter of time.

The word “Attorney” puts a certain feeling of uncertainty and fear into our very being. Not many of us like to call an attorney for advice or help of any sort, because we surely know, the charges we incur can be astronomical. This puts many of us in a quandary as to whether we should spend the money for attorney fees or take the risk of not having council, by doing without the cost or expense and unfortunately without the professional assistance that we might need or require. But, like not protecting yourself and your family, house or car with insurance, the risk can prove to be disastrous.

Many of you have heard of Pre-Paid Legal Services but really know very little about how it can help you. Pre-Paid Legal offers a plan that is called the “Expanded Family Plan” which, among other things offers the benefits that I have listed below:

1. Unlimited questions answered for business or personal matters.

2. Unlimited calls or letters made for you and your family. (One per subject matter.)

3. You can have an unlimited number of contracts or documents reviewed by your provider law firm.

4. Included in your coverage with the “Expanded Family Plan” is pre-paid trial protection that is included as part of your membership. This benefit grows each year you stay a member with Pre-Paid Legal totaling up to 335 hours by your fifth year.

5. Automobile representation for you and your family no matter where you had the accident or the ticket occurred.

6. Once you have bought your new property, you will want to have your Last Will and Testament and your Living Will created as part of your Family Plan benefits. If you already have these important documents in place they can be updated free of charge with your membership.

Whether you are buying or selling real estate, there are always reasons to have the benefits of a team of experienced attorneys on your side, and ready to represent you.

I have no doubt that you have heard of horror stories from friends, family and co-workers about lawsuits for slips on sidewalks, worker injuries or other disputes. These can become nightmares that drain your energy and your wallet.

There are many more benefits for members of Pre-Paid Legal Services. What I have listed above encompasses some of the more significant benefits for the real estate buyer.

For only $25.00 per month is there any question anyone would not want or need this type of coverage and representation?

When you are selling on a rent to own, I strongly recommend making use of Pre-Paid Legal. If you are interested in hearing more about how Pre-Paid Legal can save you and your family money and grief, feel free to call Michael Gott at 248-227-3943. If you like what you hear and are interested in signing up now, visit www.prepaidlegal.com/hub/wendypatton

Subject To Investing - Seller Objections

Earlier this week I did a post on Lease to own training - seller objections, today I want to look at Subject To Investing and seller objections.

Here is a common seller objection when it comes to subject to investing: “Why should I give you the deed and control of the property when I’m left on the hook for the mortgage?”

This is a legitimate question and one I would certainly be asking if the roles were reversed. It demonstrates why it is so important to build rapport with the seller and make them feel comfortable with what you are suggesting (rapport is important whether you are doing subject to investing or lease options). Remember, subject tos will not work with everyone. To answer this question you might want to offer references or testimonials from other sellers. Here is an answer one of my students gives to their subject to sellers -

“I can understand your concern, and I would probably feel the same way if I were in your shoes. All I can tell you is this: The bank will not let me assume your mortgage, and in order for me to make a fair return on this deal, I can offer you$X. I’ll be glad to buy it right now at the price I’ve quoted, but then how would you cover the difference to pay off your current loan? You are actually being very savvy and getting top dollar for the property by letting me take over your payments; we both save all the costs that we’d incur - commissions, closing costs, and so on - if I were to just buy it from you. The minute you okay this paperwork, I kick into owner mode. I will be doing everything possible to sell this house as quickly as I can, using my expertise. I’ve spent thousands of dollars on training to do this business, legally and morally. It would be futile for me to let this property go back to the bank just because I didn’t make the payments.”

Remember, when a seller raises an objection either in a lease option or subject to investing deal it means they are considering your offer. Learn to love those objections!

Lease to Own Training - Due Diligence

When you are doing lease to own investing or rent to own investing a critical step when you find a deal is to do your due diligence. That means you, as the investor, need to do some checking on the home seller to make sure there aren’t going to be problems. What are some of the due diligence steps I take, or train my lease option students to take?

1. Order Pretitle Work - you need to look at the seller’s title to see if there are any clouds or other things that would prevent the seller from selling to you

2. Check IRS/State Tax liens - usually these will show up on the pretitle work. But the home can’t be sold without paying off these liens

3. Check if the Mortgage is up to date - get a signed bank authorization from the seller to allow you to verify that their mortgage is current. It’s also a good idea to verify the amount of the mortgage payment, because if the payment is higher than your agreed upon rent the seller will have to cover the difference.

4. Check if the property taxes are paid - The seller won’t be able to sell the home without satisfying these debts too so you need to make sure they are being properly taken care of.

Not only is it a good idea to verify these things before you sign the deal, but it’s not a bad idea to check up on some of them during the deal as well. You want to make sure that the seller is going to be able to sell you their home when it comes time. When you are doing lease option investing, or rent to own investing due diligence is a step you don’t want to ignore. For more on due diligence see my book, Investing in Real Estate with Lease Options and Subject to Deals.

Lease to own training - seller objection

As part of my lease option training I talk about how to handle seller objections. Sellers who raise objections are great. You know why? It means they are seriously considering your offer.

Here is an example: “What kind of people are going to rent my home?”

Here is the answer I give them - “The best kind.”

Some sellers want to discriminate regarding the types of tenants that move in, but I have to tell them that by law I can’t discriminate (neither can you). If discrimination issues are important to the seller, I tell them that I’m not the right person to buy their home. You need to take this approach too - no deal is worth violating the Fair Housing Act for.

But I do reassure the seller that I’m going to take care of their property and put someone qualified into their home.

Handling seller objections is an important part of your lease to own training, but they really aren’t anything to get worried about. A seller who objects is a seller who is considering your offer. Give them the best answer you can, mostly they are looking for reassurance.

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Selling on a rent to own - ads

When it comes to selling on a rent to own, or selling on a lease option one great way to generate response in your ads is to remember that romance sells. Beautiful sunsets, bring your canoe - think of something short and catchy for the ad, things that might reflect a holiday or time of the year. Or you can push on the credit issues, location or special features of the property. There are many ways to reach buyers. Try different approaches to see what works for you. If one ad doesn’t work, try another, if one advertising source doesn’t work, try another (use free sources, particularly the internet like Craigslist).

Here are a couple of sample ads for selling on a rent to own:

Sunset views with a bottle of wine help you celebrate your new home. Low monthly payments required. $1395. Small option fee gets you a new start. Call today (333)444-5555.

That ad evokes the romance. Most homes have a sunset view so it doesn’t take anything special, you just need to implant the romantic image in the tenant-buyer’s mind.

Here is another choice:

Buy your family a new home in 2009! Start out fresh! Own a home now! 3 bedroom 2 bath in XYZ town with great schools. $995 month and low amount required to get in. Call today. No bank qualifying. (333)444-6666.

In this ad we are selling on a lease option to a family. “Buy your family a home” “Great Schools” these are evocative phrases for the family oriented home buyers.

Rent to Own Investing

When it comes to rent to own investing - when you are buying on a lease option - I tell my students to follow three basic steps in writing a proposal or offer to the seller:

1. Keep it simple

2. Do your homework

3. Determine your offer

Keep it simple - Sometimes we get too formal. We want to make sure we have the proper letterhead and business cards and look official up front. We feel this gives us the legitimacy a seller expects. However, counterintuitively, there are times when too much polish may in fact be detrimental to us because the seller finds it impersonal. Save the formal documents for after the deal is negotiated, when it needs to be drawn up in detail. That’s how you keep it simple in rent to own investing.

Do your homework - you can’t put together a proposal without first doing some research when buying on a lease option. You can’t base your offer purely on what you think the home is worth; you must incorporate the comparables as well. Comparables are key in rent to own investing, if you don’t get the price right you won’t be able to complete the sale on the back end and get paid.

Determine your offer - When buying on a lease option I usually include terms that will limit my risk. One approach is to include a clause that says my lease option can be terminated within 60 days with written notice to the owner. This provides an agreeable exit to problematic transactions. Another method that I use even more frequently is to make the start of the lease option contract subject to finding a tenant-buyer. This significantly reduces your overall risk and avoids having to begin funding monthly payments before you have your own funding source in place.

Remember rent to own investing doesn’t have to be that complicated - keep it simple, do your homework and make your offer.