Rent-to-own investing strategy explained by the Rent to Own Queen-Rachel Oliver

[@fi_high]

Thanks for the video! I also shared the same surprise to find out that there's so much more to real estate investing than rental properties. What a great way for both investors and tenants to benefit!

[@RealEstateTaxTips]

It surely is!

[@williamtiffee3799]

The funds (i.e. fee) a "tenant buyer" puts down, is known (in the US) as "option consideration." This is non- refundable, and should therefore NEVER be considered as "a deposit," nor a "down payment..." and FULLY disclosed! (That said, IF the lessee ('optionee') DOES decide to, and CAN complete the purchase within the option agreement period... THEN the 2- 5% the speculator (investor) or home buyer (potential end- buyer = occupant) can usually 'deduct' the amount put down from the purchase price, at closing? Otherwise, the lease optioner (i.e. with the Option vs. Obligation, to purchase) only RISKS the amount invested in the option contract, and the contract can also then generally be 'resold' during the agreed timeframe (generally 1- 5 years) to another end- buyer "and/ or assigns...") if they opt NOT to complete the purchase, themselves? 😃😎😉

[@gailboucher4785]

What percentage of the monthly rental goes towards the baloon payment

[@rosscoceria7924]

HELLO! Just subscribed to your channel. Very informative video and thank you for sharing. This is a good balance for both investors and tenants. Does Rachel do mentorship program that you know of? Thank you in advance

[@RealEstateTaxTips]

Glad it was helpful! Not that we are aware of.

[@rosscoceria7924]

@@RealEstateTaxTips Thanks again. I'm now a fan and is watching your videos one by one. Can you somehow take a client far away in BC? If so, How does it work? We are in Vancouver Island.

[@RealEstateTaxTips]

@@rosscoceria7924 thanks for the love! You're welcome to reach out to my office at [e-mail] or call us at 416-548-4228. We work with everyone across Canada except in Quebec (sorry...)

[@shaynadavidovhansonrealtor]

How would you convince a seller who may not be in market to do this?

[@ernestharris8241]

is the rent to own down payment now the rent agreement down payment. or do you get both down payments

[@prasadm3]

Great video! 30% annual return is incredible

[@RealEstateTaxTips]

100%. I was shocked by the ROI myself too!

[@vamshipalavalasa3465]

Amazing strategy, and great video 👍

[@Swiss2thfairy]

Basically, are you allowing the tenant to buy time to qualify for a regular bank loan? Do I understand this correctly?

[@RealEstateTaxTips]

High level - yep

[@karinazhu8462]

In rent to own, the owner takes down payment and month payment over rent. How are these two items taxed? Are they income to the owners and taxed as income tax rate? I hope some are capital gains.

[@RealEstateTaxTips]

Rent to Own is considered a business. I would recommend you schedule a meeting with my team to go over the tax treatment of the income generated by Rent To Own so you can better understand the tax treatment of the income stream and set yourself up accordingly.

[@vjockin]

This interview was encouraging about the rent-to-own process, but it was also very short on specifics. After watching it I don't really know how exactly these deals are structured.

[@RealEstateTaxTips]

I do have some inside information myself as I was doing a presentation to many of Rachel's clients. You're welcome to check out there website directly to find out more about rent to own: renting2own.ca/

[@williamtiffee3799]

I just posted some more 'detailed' info. if the 'comment' here, is visible? (I also do these and other interrelated types of "creative terms" deals in the US... and may also start doing so in other places, soon.) You might also do a video on Sandwich vs. Cooperative lease options, and cover the (LO=) "lease purchase," vs. (LP=) a "lease option" (i.e. with the option, vs. obligation...) to buy!

[@DarceyPaziuk]

What percent of your rent to owns have ended successfully for the renter?

[@godisalllove8602]

Sounds terrible for the buyer. They put in 5% just like a loan where they actually own the home. They also have to make all the repairs and don’t really own the home.

[@RealEstateTaxTips]

Maybe the video didn't do the program the justice. Generally speaking tenant buyers do not have the credit or the savings for the initial downpayment. Throughout the course of the lease, they get to contribute monthly toward their 5% downpayment. In certain situations, the tenant buyers would also be improving their credit score through out the term of the agreement. The entire goal is to give them enough time to work through their issues and get into home ownership in 3 years term. I've seen so many cases that the appreciation of the property has gone way above and beyond what was used to calculate the sale price. From a tax perspective and investment perspective, the program provides a great entry opportunity to the tenant buyer.

[@RedLeo-pf9yo]

Looks like they’re in a dentist office. 😂

[@Gid-J]

Sounds like the renter gets screwed. Not a good look for this lady's business.

[@RealEstateTaxTips]

The renters are not screwed. The renters would not otherwise have the ability to borrow from the bank.

[@gistech8777]

bewary that if the owner goes into trouble then high chance that you lose everything....