OfflineJust closed on my first Rent To Own deal which started May 1st of 2012.. I purchased the home for $5k down, $600 per month and total purchase price of $65,000. I sold it under option 1 week later to a tenant buyer for $10,000 down, $900 per month and a purchase price of $90,000. There were a few issues with the appraisal and we had to twerk some numbers for the bank but it all worked out great! I had to actually close the deal in June 2013 with the original owner which was a mistake that I made but it was a good lesson learned! I never paid a penny out of my own pocket and received $11k today at closing.. I have 2 more deals to close and I will have reached my goals for 2013. I already have those two deals now just waiting to sell.... Its amazing the things that can happen and what you can learn in only a years time!
John Trivett
I feel like too many people miss out on deals because they are not familiar with the process. And rightfully so, many of the creative techniques are not widely known. Most real estate agents you talk to will probably not even know about creative real estate purchases.
If you have some free time scour the internet in search of information on creative real estate deals. However, be picky don't believe everything you read on the internet. Implement this knowledge into your investing and you can expand your portfolio without much money out of your pocket.
I like to know what mistakes you have made during this creative deal, and why this deal was so much creative compares to the other deals.
Thank you~ ^ ^
I like John's story on using creative financing to do a deal. Getting his rent to own tenant in place before he had to even put 5K down on his purchase was very intelligent and meant no money out of his pocket. Using seller financing by leasing with the option to buy, or making monthly payments to the seller with a seller carry back loan or a rent to buy deal can tie a property up with little money down while you find a buyer for more money than you paid, especially if you negotiate a good price on the property. Remember, you never know if the seller will do something creative until you ask. Many sellers are motivated enough to give you a great price on the property and good terms.