subject: How To Get Cashed Out On Rent To Own Real Estate Deals [print this page] The process of buying and selling houses to tenant buyers can be both challenging and rewarding. The challenge is finding the right person for a rent-to-own deal. You need to have someone with good credit and who will be faithful to the entire process. You need someone who will live up to his or her end of the bargain.
But it can also be quite rewarding to place tenant buyers into homes. These are individuals who might not have a chance at home ownership otherwise. By allowing them the opportunity to purchase a house, you are giving them their down payment on the American dream. It's a win/win situation for both you and the tenant buyer.
Still, it's important to keep to specific timelines when dealing with tenant buyers. You will want them to purchase the home within a year's time. That's true whether you are operating under a lease option or a land contract. The idea is to get everyone cashed out within a year's time.
One way you can do that is to give the tenant buyer incentives for completing the transaction within a year. For instance, you can let tenant buyers know that their monthly payments or the price of the property will increase after a year. It's important to be up front about this, and not to hide information from the tenant buyer. You want him or her to be comfortable with the process, but you also don't want to lose money on the deal. In this way, the price hike does not come as a surprise to the tenant buyers.
If people don't understand the buying process, the entire process can slow down. That's why it's critically important to keep people informed every step of the way. Such an approach is of benefit to both you and the tenant buyer. If the tenant buyer knows that the price of the property might rise, he or she might work a little harder to qualify for a loan.
Once the closing is finished, the individual working with the tenant buyer will submit an invoice to the president of the company and will typically receive a $1,000 per transaction. It's important to note that the individual involved will not get paid until the house is sold. However, if you can arrange for a number of closings within a given month, you can certainly make a good living.
by: Alan Cowgill
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