How “Rent-to-Own” Can Increase Cash Flow and Maximize Equity with Bill Powers | BP Podcast 185

[@blplovinglife3131]

We had our home for sale for over a year. No offers. We put Rent to Own listing on Facebook Marketplace and got 40+ inquiries in two days; 7 confirmed appointments to view and one signed contract with $ down. We found that many of the inquiries were parents putting $ down for their kids. I should have done this months ago!

[@ZukoTheShinigami]

How are things going now? Would love for you to respond since I just recently graduated and would love to get some advice!!

[@gk2157]

First time listener. By far this is one of the best real estate investment shows I've heard in a long time. I learned a ton! Thank you and I'll stay tuned...

[@cheriebouker6132]

Bill, thank you for being so candid about your business model! I admire that you give back to fellow investors as well as the community. The guys drilled down for specifics that I have been shy to ask. I love your integrity for doing things the right way (like getting permits) and providing a quality product for the homeowner. So glad to see what has obviously worked so well for you!

[@tinawalker5335]

The nonprofit selling the houses to investors who jack up the rent is actually counterproductive if their mission is to assist in affordable housing. I’m an investor but that is why first time homebuyers are struggling to find homes.

[@cheriebouker6132]

IMHO, most buyers are not knowledgeable or equipped to make dilapidated houses livable. Investors provide an important service and deserve to benefit from the risk they take.

[@sergii_real_estate]

I also didn't get the scheme, how is it non-profit acquiring property first hand to help people to become homeowners reselling it to investors, who with all due respect putting profit first, we know how we are.

[@sergii_real_estate]

I'm completely lost on how they run operation... 1) That's why the success rate of program participants is low like 3-5% because they don't make any down payment so not much for them to lose if default happens. 2) Acquiring properties from affordable housing divisions first hand seems like a good scheme for investor, but I don't get how they sweettalked them to sell properties to investor. 3) Allowing tenants in the middle of rent-to-own program to switch to different property seems crazy, now you left with all extra cost to pay for turning property around (even if it's cosmetic) and vacancy there.

[@generalee72]

Loved this show, I like the things Bill is doing, he's doing things the way I have envisioned doing them myself.

[@ericv8395]

Rent to own personally bring me cash flow every month and I got it from super cheap

[@tonystarkcoins2014]

Hi great video. I have some questions. There are 2 contracts if I am not mistaken. 1. A rental contract 2. A Option to buy the house contract. Is it common that both require a separate down payment. For instance for the rental contract there is a deposit that is for in case you break stuff And for 2 there is a down payment which is like the premium you pay to have the right to purchase the home before set date at set price. Also what happens if after the option period, the renter can’t get his finances straight, does he forfeit his down payment and all the extra payments and rent credits he received? Is it common that the option period gets extended? Let say the renter, wants to extent with another 2 years, does he pay another premium and I suppose the price would be renegotiated? Also is there a maximum the renter can put towards the rent credits? Let say he gets 50% bonus, if he finds a way to get 100k, the landlord has to give him a bonus of 50k and then the renter buys the house next month.

[@sergii_real_estate]

Great questions, but none will respond you from here. It definitely gotta be consulted with attorney familiar with Dodd-Frank act. As far as I understand the terms of your contract are flexible as much as tenant qualifies for purchase according to Dodd-Frank act based on applicant DSCR and may be smth else? Once I made terms my own and negotiated with potential tenants/buyers who lived at the property I wanted to purchase, but they couldn't buy it because of low credit. Everything looked good on a paper for them and me, but didn't go through since I couldn't take seller down on the price to get the ownership of the property. However I believe I still had to turn all paperwork to attorney to review to make sure it doesn't go against those regulations imposed in 2014 for rent-to-own deals.

[@bahramx1]

thank you for shearing information. i have a question? new neighbor moved to next my property with 5 years payment plan with rent to owne deal that means they are not owne the property yet. and they start cut all big trees over 150ft tall and they traspass cut few of my big trees and solded. im wandering how is responsble for damage?rentals? or property owner? please halp thank you.

[@marcw.5492]

How much did you start with ? I may have missed that . "Debted out and cross collateralize" ... no idea . Good talk thanks

[@sergii_real_estate]

He had all cash to buy properties. Then started refinancing.

[@julietwahome6454]

thankyou for the info very helpful

[@ravjits]

I have someone who wants to rent to own my home. It's isn't even rehabbed yet and he said he'll take it as is and do the repairs himself. Willing to put 3% down.

[@therealstephenschott]

jeet s I know this comment was from a year ago. Did you end up doing a lease option with your property? How'd it work?

[@abballc1040]

Who done the maintenance on the property?

[@_CashFlowTy]

Hey what ended up happing with this ?

[@danlewis1603]

Great information, Thanks 🚀

[@johnym1]

I would love to find a rent to own property in my area. Not to sure where to start looking. Can someone help?

[@HjCrawford]

Where are you?

[@WAPKRUSHER]

Did he ever release the screening tenant info?

[@homesolutionsalternativesl2390]

I would love to know more about that NCST because I have a contracting company as well and this would be perfect! Long time ago when I called our local HUD to see if they have a similar program they transferred me all over the place and then when I finally got to the correct person she had no idea what I was talking about :-( . I called and left a msg for NCST I found them online, fingers crossed!!

[@MattBuysHouse]

is it true a lease-to-own eviction can take 6 months to 1.5 years because its looked at so differently by courts? how can we get around that?, (how can you do lease to own knowing eviction will wipe you out)

[@HjCrawford]

I would love to know about this as well!

[@monicap7547]

Its actually similar (basically the same) as having a tenant in the property. Depending on the location of the house will determine the length of time it will take. Its actually much easier to evict on a lease-option than with a land contract. Land contract would look more like the foreclosure process which can take a lot longer. (Knock on wood) I've never had to deal with either one of these but this is my understanding from what I've read and the people I've talked to about it.

[@dreamingcode]

You give them a lease contract separately and then an option to buy separately. If they fail to pay then it's a normal eviction because you're only leasing them the property the option to buy is totally separate it just prevents you from selling the house until they buy it they are still a tenant if you keep these agreements separate. If not then you could be in trouble as an owner

[@weekdae1032]

Adrees section 8 on authorising NJ. 07079

[@chachee15]

sounds like you are losing out on a lot of money

[@sergii_real_estate]

Exactly, I didn't get his mechanisms and how he makes money off the rent only without deposit + it's risky.