The first thing an investor needs in order to create a rent to own real estate investment is a seller. The more motivated the seller is the better it is for the investor. Ideally you would like to find a seller that is about to wash his hands of the property and is ready to give up. That seller will do just about anything to get rid of the property. There are many reasons for sellers to be extra motivated. Money or lack of it is usually the number one reason. The seller could also be moving and he needs to get the property off their hands so they don’t have to worry about it when they move. It could also be that the seller has been an investor and just wants to get out of the business. It doesn’t really matter what the reason is as long as the seller is motivated to sell.
Second, you must negotiate the deal. The best of both worlds would be to try and negotiate a deal that suits you, the investor, and the seller. That way both sides come out of the deal happy. Why is it important to try and keep the seller happy? What if the seller is indeed an investor or former investor? This means they probably have other properties they may want to sell. Also, it is just easier mentally if both side like the deal they are getting. Odds are it has to be this way anyway. If the seller don’t like what you are offering, guess what? They won’t sell to you.
Finally, you must find a tenant or buyer. It sounds easy, but it usually is not. You may go through many potential tenants or buyers before you find the ones that you like the best. Take your time with this step. It will save you lots of money in the long run.
There you have it. These steps make it sound easy but it is not. This can not only apply to rent to own investing, but also conventional real estate investing.
