How to Sell Your House Rent to Own

[@freedom_mentor]

Every successful real estate investor has a mentor. Get your mentor here: www.freedommentor.com/apprentice

[@JuanGomez-sb6ux]

literally the best KZbin channel for people that would love to be in the real estate business in the future.so much info! thank you Phil!

[@ronjackson1934]

Hi Phil. Loved your bid on the rent to own. Prior to this, my wife and I had been trying to sell our home, but no luck after 6 months. We live in a small town in Tennessee where more people seem to be leaving than are coming to live. We own a 5 bedroom 1 bath home built in early 1900. After watching your video, I started to think "I can do this" Phil made it so simple. While talking to a neighbor who was looking to buy their own home, but, due to a recent divorce both had credit scores below 600. He was a registered nurse and she worked for an attorney. Good income, but needed time to increase their scores. We were asking $60000 and proposed this idea to this couple. I would let them rent my home, for 18 months to give them time. I proposed they put $5000 down, pay $500 per month rent then after the 18 months, secure the loan. Money was direct deposited to my account first of month from their account. My mortgage (PITI) was $385/ no. Giving us a $115/mo positive cash flow. This was a win/win for us both. The deposit would come off the purchase price but non refundable if they backed out. The principle they helped paid was also helped reduce the purchase price by an additional $1185. All this was accomplished within 10 days of watching your video.

[@richcascio]

@@ronjackson1934 thanks for sharing. Did your tenant buyers ever cash you out? If they did were the tenant buyer able to use the deposit they gave you credit towards their down payment? Thank you

[@EagleThirteenPropertiesLLC]

Another awesome and insightful video Phil! I'm in the process of finishing a total rehab on a house I purchased for $7500 in Louisville, Ky. I was planning on going the rental route but after watching your video I will definitely be trying this! In the last month we've had a landlord shot and killed while collecting rent from his tenant and a house that was burned to the ground after the tenants were evicted. Have to be more diligent about who you rent to these days for sure.. On a side note my copy of Real Estate Investing Gone Bad is supposed to arrive today and I can't wait to read it!

[@PowerofTruth66]

Great video Phil. There's a tremendous opportunity to use this strategy like you said when they are set up properly. I appreciate you taking the time to make this video.

[@mariofuentes4100]

Brilliant video...

[@mikedrake8684]

Best narrative for the situation I have seen. SIGNAL for sure, I hear ya Loud and clear Phil

[@MaApriletteSulib]

just subscribed to your channel, great info. I love the straightforward and simple way of explaining real estate lingo. Love the video.

[@savaven1]

coming from the person in the tenants position this is an amazing option to a massive amount of people and totally ethical

[@christinewalker-d2s]

Great video. Thank you

[@edwinestrada8715]

where can I download a contract for this?

[@ArupBhanja]

What an amazing channel with such a wealth of information. Stumbled upon this channel and boy am I happy.

[@HectorMAcevedo]

very good info thank you am not a owner but was thinking to get into rent to Own and this info open my eyes , to pros and cons

[@renegade382]

Fantastic video!

[@freedom_mentor]

Awesome! Glad you enjoyed it.

[@henrylacks9979]

Phil, if the market takes off (like it has here in Florida), then the tenant could purchase the home at the option agreement price even though the value of the home may have increased by $100k, correct? Or is there another strategy that investors can implement rather than hoping the tenant falls into the 90% who don’t end up taking the option?

[@Monoperty]

You have given us all a lot to think about. Great video with great tips! I will check how this works in the UK. My channel is very basic compared to yours. You are the Jedi Master in terms of knowledge! Thanks Phil.

[@heldaberaunleiva7172]

THANK YOU SO MUCH GOD BLESS YOU🙏

[@AUTODIDACTANY]

thank you phill.....

[@jimstheguy]

Dude, this video is packed! Thanks!

[@carolhazel]

I wish I had seen this video before I sold my house by Land Contract for 10 years. They buyer stopped paying the insurance after one year so I've been paying for their insurance for 5 years so my investment is protected.

[@freedom_mentor]

It should have been written into the Land Contract that the borrower maintain insurance.

[@carolhazel]

It was in the contract. Two months into the contract I came to the property and asked what insurance company they were using and he said: "none, we haven't gotten any". So I went out and got rental property insurance on the property that day. For the first 8 months he was reimbursing me for the insurance then he decided he didn't want to pay for it anymore. I told him he has NO chance fo ever receiving the deed until he pays me for the insurance and he said: "I know that". I wanted to evict them that day but my husband was worried that it would take a long time to get them out and in the meantime, they would destroy the place. I spoke to an attorney about this issue a couple of years ago and he said "the family has been paying on the contract for almost one-third of the life of the contract now so no judge will evict them this far into it. At this point, I'm not sure what my options are. I'd love to kick them out but not at the cost of my property being torn to rebel. I kind of feel I need to just pick my fights with them. At least the rest of their payments are on time. I know that next time I need to be smarter by becoming a member of your Mentor Program so I'll have access to better contracts & receive good advice on how to handle this kind of issue as soon as it starts. I feel this is a good example of what can go wrong when you try to go it alone. THANKS FOR ALL YOUR TEACHINGS PHIL!!

[@FreedomRyder]

Excellentvvideo. Tnk u

[@yoseffeissel6327]

Phil thank you for speaking in a very polite manner and not using dirty slang, I have been watching some other youtube people and it's not nice. Good luck

[@jamesharlanjohnson6882]

I am confused regarding the rent credits. If the 'rent' is $1200", the rental credit is $1300, is the entire $1300 credited towards the purchase price? @12:55 Phil refers to $5000 down payment. Is that separate from the Lease Option? As I understand it, the lease option payment is completely separate from everything else.

[@ishratkhan7451]

Great information. what the laws in Michigan for rent to own.

[@dwightfontenot9064]

"Go with a hand-written sign, this one is not hand-written but it looks hand-written." LOL! Love the vids, thanks! Any chance of you posting your Rental Agreement and Option Agreement somewhere?

[@bozodeniro]

If he was any funnier he'd be dangerous!

[@bozodeniro]

Talk about dangerous watch this! kzbin.info/www/bejne/eHPScp6dobGAZqs

[@awakeningjourneyalone1375]

I took your advice on creative investment n got two deals on rent to own. My problem is since i havent pay it off yet, do i have the right to sell it if im the one that is renting to own?

[@hendaragravante975]

Mz Tulip I like that question Mz Tulip - You are a smart thinker👍 -Darwin-

[@bjornolson21]

I don’t see why it would be any different than doing a for sale by owner or selling with an agent. It’ll still go throw escrow and closing and the bank will get their money at closing like any other time

[@707mamasboy]

Great information!!!

[@quintonabrahams3442]

Hi Phil !..quite interesting and very informative, thanks for sharing, I've made my notes.

[@dwaynesmith7338]

Do you offer contracts for lease/options to buy

[@modern.kidizens3672]

I like your video you have gave a chance for financial freedom (Each one teach one)thanks I've passed your info to other

[@serega4087]

Its always looks good on paper, but can be life a life changer if you have brain, some money and master it...thank you for reveling those secrets and yes market is tremendeous....

[@MultiMm2009]

This is I think what I need to put on offer of my Villa to be more attractive in selling it while renting it.

[@davidgittens6025]

Awesome information and tips! I look forward to your new video postings. Another pitfall that came to mind was if the leasee knew they would be evicted, and destroyed the house. Is that a likely scenario?

[@freedom_mentor]

+David Gittens At least you have a bunch of upfront money to pay for it. And then you could still sue them for the damages after the eviction.

[@sanchopancho7638]

Phil, GREAT video! Very informative. This is your first video I watched but definitely not the last. Subscribed! I am a homeowner, house was HUD, I flipped it (2 years ago), it's worth almost double now and is paid off. Thinking of what to do with it next... So, question: Is it possible/legal/advisable to combine rent-to-own with owner-financing? I'm asking this because I want to give my future renter the option to buy it at anytime. Even after 8 years. Not only 2 years. It is important for me that the renter has the responsibility for maintenance. What do you think? What should I do? Thanks in advance.

[@freedom_mentor]

Give him/her 2 years and if they treat your property well, you can always extend it.

[@janewilson5744]

Excellent video! Thank you!

[@davidpreston1811]

Great information. Thanks Phil.

[@MinhVu-fo6hd]

Great video! Thank you Phil! By the way, what is your experience on rent to own for townhouse/duplex/triplex? Thanks again.

[@freedom_mentor]

Very difficult. Tenant Buyers are typically wanting to move away from an apartment complex, duplex, triplex; and into a single family home, a home of their own, where they have no neighbors on either wall and where they can have the white picket fence. The Rent to Own model is perfect for single family homes but for any other residential property type, it can be very difficult.

[@ericv8395]

It's easier to sell it than to buy it. I've bought them for cheap from here and then flip it for 10x price.

[@tmickeyproductionsNC]

I’ve been learning from you for about 8 months. I bought and read both books. We decided to lease option our own home. We’re downsizing to a different situation. You were soooo right. We put up signs For sale or Rent to own exactly as you instructed. Our phone rang off the hook! For 3 exhausting non-stop days we showed our home. We chose the people and in 4 weeks we do the deal. We got a local real estate attorney to draw up and file the papers. My only question....since we will still own the house until they exercise their option to buy, what type of insurance do we need to keep on the property. P. S. Thanks for not using bad language and for keeping it fair for the potential tenant/buyers. There are scammers ruining this for honest people.

[@tmickeyproductionsNC]

Disregard my question about insurance. I found your video on that. Thanks Phil. You have taught me so much.

[@Kayy_SS]

Wow. This 22min video is so helpful. Really, I just wish that I have had seen this sooner. My parents bought a house for 70k 13yrs ago and last year we sold it for 79k :( ( was in time sensitive to buy this " better " house ). A friend of mine suggested us listing it for rent ( since we almost paid off the house) but at that time, we all just thought why would we want to do that ??

[@sam5miy]

Great video. You said there was a video about installment sales or this new law. Can you link the video or tell me the title of that video? Thanks!

[@freedom_mentor]

That's the Frank Dodd Act kzbin.info/www/bejne/oaPPl4OMh56YkKs

[@marcw.5492]

Is this a good idea when getting into a property ? i.e. Im buying a home and would be willing to initiate a rent to own upon purchase... is this a good idea ?

[@erichernandez6543]

Are you doing this option with homes bought or on mortgage?

[@freedom_mentor]

Absolutely.

[@wesleymitchellrealtor9919]

Good video

[@LakeyiaJoy]

Good stuff Phil‼️ Looking to do a rent-to-own on our primary residence. Great tips‼️

[@patriciadelarosa1834]

I sent to own right for a low income? Do you have to pay a deposit?

[@MarcusLeepapi]

Nice..Thank you..

[@jamesgilpin6379]

Phil - Would it be possible to rent-to-own from a landlord and then sub-lease it to another tenant with a mark up on the rent and purchase price?

[@freedom_mentor]

Yes. It is called a Sandwich Lease Option. The only thing that would prevent you from doing that is if your lease with your landlord restricts sub-leasing.

[@Gab1Bv]

Question. If there is already a mortgage on the house , will the person paying the mortgage able to do the Rent to Own on the property?

[@freedom_mentor]

Yes. Of course.

[@SanFrancisco-tour]

Thanks. Phil

[@myrongaines6875]

Thank you Phil - this is gold.

[@arabianprincess9396]

Can you please include forms you use for rent and lease agreement

[@asastovall]

Phil I live in Nashville. Do you have any recommendations for real estate lawyers in this area? I would like to look further into the paperwork for this strategy with a local lawyer. Thanks.

[@freedom_mentor]

Tom Bottorff

[@asastovall]

+Phil Pustejovsky great thanks!

[@RobinsonAriasRealEstate]

Hi Phil, Fantastic information! Is there any chance to get the lease agreement and the option agreement that you use. Thanks

[@Michael-qy1jz]

The other down fall is that in Florida we are in another major bubble again that is getting ready to pop, so most likely the rent to own people will not buy at the end. If we get a 30 to 50% drop again with hedge funds dumping rentals and etc, then the owner missed the opportunity to sell close to the peak.

[@freedom_mentor]

Hedge Funds are the smartest guys in the room. They haven't started dumping yet, which tells me, that either they think the market will continue to improve; OR, they are making so much money renting that they have no interest in selling in a very long time.

[@oracleestatellc9369]

I am interested in renting to own as soon as possible

[@jorgevelasquez9955]

Phil, Is option up front payment deducted from final sale price if they buy the property or is that separate from buying/selling price?

[@freedom_mentor]

Deducted from the final sales price

[@e.bellanca9830]

Thanks Phil.

[@renttoownhomes9896]

Great information, thanks Phil!

[@twis7edsoul378]

Thank you sir.

[@kyawlinthein1983]

Hello sir, Thank you so much for all the videos. I had learned a lot over the years. I was felt great to found out this video. But here are my questions, Do you think this is the best time for rent to own since interest rate are high and no one easy to buy the home ? I’m try to selling my house for last 7 months and not going nowhere. Everything remodel. New roof, new kitchen, new bathrooms so on. We are starting to thinking to make a rent to own. That how I found your video. Thanks.

[@autrychambliss4780]

clear and consise..

[@THEGABNER]

Hey Phil, What do you think of this technique after i condoize my duplexes? They are side by side townhouse style and very homelike. Thank you. Gary

[@freedom_mentor]

Great idea.

[@THEGABNER]

Thank you Phil! Great instruction on a concept that makes sense to me.

[@jamestuckeriv7269]

This is the best info on Real estate ive heard.

[@candysmith8724]

Phil - Can you do this in the state of Texas if your home has an existing mortgage and a tax lien on it? Thanks!

[@PhilipHew]

To do a lease to own do you need to finance this deal yourself? or can you use a mortgage?

[@freedom_mentor]

You can own the property free and clear or with a mortgage on it. You are renting to a tenant while also giving them an option to purchase the property from you. If you do have a mortgage, just make sure that you have enough equity so that if the Tenant does exercise their option to purchase, you don't go upside down.

[@MisteMiner]

Any rule of thumbs for the DP? A certain percentage of the option price perhaps?

[@freedom_mentor]

3% minimum; because that's the minimum down payment some lenders require

[@surindermander5095]

Nice,u doing good job.

[@erickjarquin2355]

Can you share a copy of the contract

[@robn.5932]

Where do you get your signs?

[@freedom_mentor]

There are tons of sign companies that will print them; or you can make them yourself

[@jayc4715]

Is this type of deal done with just a handshake and a notary, or is it done thru a title company as an actual lien?

[@freedom_mentor]

It's done with a notary; title companies have no need to insure title since title is not transferring.

[@jayc4715]

@@freedom_mentor thanks

[@smyths20]

Thank you, so good. I would not have known about rent to own.

[@isakwilkinson2491]

I know you're just making a short video I get that thank you so much. But the biggest headache for me is pulling double insurance not only have to have homeowners insurance myself on that property but I got to have renters insurance also on that property

[@freedom_mentor]

We invented a technique that avoids the double insurance issue but we only share it with those in our Apprentice Program. Over the past 20 years, we've solved most of the major issues that plague creative investors but those discoveries are proprietary and we keep them close to the vest.

[@asastovall]

+Phil Pustejovsky Is there a program out there you recommend or that you have that will teach the rent to own process?

[@freedom_mentor]

I teach my apprentices how to do it. I don't sell a separate program on it though.

[@mark.kendrick]

Do you have any rent to buy in LA?

[@anthonywheaton8982]

Hi Mark, I recently helped a client complete a Rent to Own transaction for a loft purchase in downtown Los Angeles. In the process, I located another seller who wishes to offer a Rent to Own scenario. If you're interested in discussing further then please feel free to send me a private message via my KZbin channel.

[@TempleoftheSon]

Can you report to credit bureaus to help tenants' credit (or hurt if they're bad tenants)?

[@freedom_mentor]

Yes

[@chiogigio2674]

Does the option agreement work for selling a manufactured home?

[@freedom_mentor]

Is it a manufactured home on it's own land and on a permanent foundation? Or is it a mobile home?

[@chiogigio2674]

Phil Pustejovsky It’s a double-wide sitting on a leased space.

[@freedom_mentor]

@@chiogigio2674 Then you have a mobile home. Most investors sell those on owner financing terms rather than rent to own arrangements.

[@chiogigio2674]

Phil Pustejovsky Thank you, I greatly appreciate the info.

[@chiogigio2674]

Phil Pustejovsky Do you recommend any financing terms on mobile homes?

[@reneenoelle18]

Phil, I can't say enough about you and the information that you share. You are truly amazing! I know you get these questions a lot but I just moved to Las Vegas and have been wanting to get into real estate investing for a very long time. I know that the RE laws in Vegas changed some last year and want to know if it is still possible to do these kind of deals here in Vegas?

[@freedom_mentor]

+Renee Noelle We do them in Las Vegas right now.

[@johng5295]

Phil, thank you very much. How can I get on board -- your mentorship?

[@freedom_mentor]

Apply here: www.freedommentor.com/apprentice

[@johng5295]

Thanks for replying. Read your book. Great book.

[@joncallis5678]

what happens after the 2 year contract is up and they haven't paid for the home. do you get a second deposit or just let them keep making payments?

[@freedom_mentor]

One, or the other, or neither. Your choice.

[@kreamwoo6450]

Hi Phil, On the Option to Purchase cancellation , how long should it be ? How much notice must be given on right to cancel ?

[@freedom_mentor]

I typically set my Option Agreement to be 2 years.

[@kreamwoo6450]

Phil Pustejovsky The investors want the Option Agreement to be 3 years.....I am now wondering if the investors want to drive the buyer/tenent into foreclose, sign a new lease deal with new buyer/tenent, and continue to drive the purchase price on my property down with the rent credits.....

[@jaywilson2685]

Question, the rent the tenant buyers pay monthly is not credited towards the price of the home?

[@freedom_mentor]

No. It's rent. You can provide a portion of that payment as a credit towards their option to purchase, if they purchase it.

[@noytheya]

That's sucks about TX, do you have a list of rent to own friendly states?

[@freedom_mentor]

Texas is the only state that I am aware of that restricts Rent to Owns to 6 months before it is automatically considered an installment sale.

[@newtonHP]

One could do two separate agreements. A lease agreement and a separate purchase agreement with close date, on or before, +24 months. Keep them separate on paper.

[@LupeShoes]

If they DO buy, do we return the deposit and rent credits, is it taken off at closing, or does it reduce price?

[@freedom_mentor]

Either use those credits to pay for closing costs, or to reduce the purchase price, or both.

[@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.

[@freedom_mentor]

Property Owner is responsible

[@bahramx1]

@@freedom_mentor thank you i have also they traspasse and set up my house in fire and i didt had home ensurance at that time and me and my familey came a homeless almost 2 years now the person usedlive next to my property he.s in jail but i dont have the money to deal with property oner i dont know what to do the curt in the couney im living chanching court dates every few months its just pain..can you please let me know you know any lowyer takes my cace,, i have all recorted on my seciurity camera

[@sethfischer8724]

Hey Phil! Quick question. If you find a home that you are able to do a Seller Finance, would you be able to turn around and do a rent to own on that same home and have a purchase price for a bit more than you are buying it for from the original seller? Thanks!

[@sheldons9475]

so Phil with the rent to own does the rent money that the tenant pays to you go towards the option payment or is the rent separate from them paying off the house

[@freedom_mentor]

Both; part goes to paying down the agreed upon purchase price in the form of rent credits; and the rest is considered rent.

[@jacklostoski6251]

Can you have a loan from a bank and do the rent to own technique or do you need to outright own the property?

[@freedom_mentor]

Absolutely you can have a loan.

[@BrandonWilliamsBinaryOptions]

Hey Phil, do you have a book specifically on house flipping for profit?

[@honduras1993]

mark loeffler - rent to own , Great book Read it cover to cover

[@clarkewi]

What about owner financing?

[@freedom_mentor]

The foreclosure process takes too long. If you offer owner financing, and that person doesn't pay you, it could take 1-2 years to get them out of the property.

[@flatpicker15]

Hey Phil, great content! I'm about to list my property rent to own and I was wondering if there is anything special I need to do about the pool. Is there any way I can structure it to absolve me, or do I even need to worry about that since they intend to purchase? thanks!

[@freedom_mentor]

Talk to an attorney so that your lease handles this potentially major liability. Also, make sure your insurance is correct. See this video: kzbin.info/www/bejne/iarIi5Rnebmcmrc

[@stevievelasquez9358]

Hi Phil, what about Texas? What would you do as far as rent to own in Texas if you lived here?

[@ivmid]

Amazing videos Phil!! Thank you so much for these great videos. May i ask you a question? How do you keep from getting too attached to a home you raised your children and are looking to sell so that you can move to a better area for your family. Thank you very much Phil.

[@freedom_mentor]

I don't get attached to anything I own. It's just sticks and bricks.

[@terrancesampson5988]

Hey I have a question so I have a rental property yet I still have a mortgage on it. Am I still able to pitch a rent to own option to my tenants?

[@freedom_mentor]

Yes

[@pherhymeswithamc6399]

do you have to, as the owner of the property selling to a tenant buyer, pay for the taxes and homeowners insurance, or would it be their responsibility since they are buying it as a future buyer

[@freedom_mentor]

You are responsible for Taxes and Insurance since you are the owner.

[@pherhymeswithamc6399]

@@freedom_mentor thanks

[@michaeletman2114]

6 YEARS AGO.. GOOD CONTENT. PHIL STILL A GOOD TIME?

[@freedom_mentor]

PERFECT TIME! Watch this video: kzbin.info/www/bejne/fqG7k5yIga2si7c

[@clout_chasing]

another great video Phil.. I've been having a lot of issues trying to sell one of my properties here in Hampton VA. I have a lot of little projects that need to be done in the house. I don't have the money to finish any other little projects so we're trying to sell it as is a real estate investor came by today and offered 75 thousand. or do a "subject to" agreement. I owe $80k and have a home improvement loan for $22k. so I want to break even and sale for $102k. we have new Cabnits and tile floor in the kitchen. both bath rooms have new tile and tub/showers & Vanities. Wooden floors have been sanded and stained..new furnace and new paint. (thats where the $23k all went) issues is the base boards need to be either paint or replace. the paint from the ceiling in the kitchen is like pilling off. needs new carpet in the small 4th bedroom. needs new interior doors for all rooms/ closets and laundry room...1 contractor said it would be $17k and another one said $10k..the house is just setting and its pretty frustrating.

[@clout_chasing]

redfin value is $131k...the city rehab the house across the street from my property and sold for $140K.

[@freedom_mentor]

Try selling it on a Rent to Own to someone who wants to take over your little projects. Don't try selling to another investor because they will never pay you as much as a Rent to Own Tenant Buyer looking to put some sweat equity into a property.

[@clout_chasing]

+Phil Pustejovsky will do. thanks for the advice 👍🙌🙌

[@helsolara558]

Hi Phil, great video very informative. Would I have to pay back the down payment and monthly rent credits if the renters decide to purchase?

[@freedom_mentor]

It's built into the final option price, so you don't "pay it back".

[@helsolara558]

Would the buyer have to pay a down payment to the lender?

[@freedom_mentor]

Depends on whether or not what the Tenant Buyer had already given you met or exceeded a lender's requirements. For example, oftentimes the non refundable option payment is at least 3% of the option price. That 3% is all the down payment that is needed for some first time homebuyer loans these days.

[@mr.ness_4u85]

right on man thanks!!

[@derekblades]

Im about to do this. where is a good place to get rent to own contracts?

[@freedom_mentor]

Eviction attorney for the lease, Real estate attorney for the Option Contract

[@PhilipHew]

Is it advisable to help the buyer repair their credit or build it up so they can qualify for a mortgage? If so would you use a company to do this or is there a way for landlords to report monthly payments to their credit file.

[@freedom_mentor]

I send my Tenant Buyers to a credit repair professional to fix it. However, if they don't follow the credit repair steps outlined for them, I stop the program.

[@taylorphillips5118]

Can the buyer/renter be made responsible for property tax, house insurance, water rates etc... ?

[@freedom_mentor]

You can structure the lease agreement to say that, but you as the owner as still ultimately responsible if the tenant doesn't pay them.