Investors don’t get into real estate so they can mow lawns and fix leaky faucets. They want to make their investment properties as passive as possible. Sometimes beginning real estate investors start out with that plan in mind only to end up with a full time job as a property manager. Some of the below strategies have been used by investors that maintained properties on a lease purchase/rent to own basis but they can be used with just about any strategy.
The property investor will negotiate with the seller to let them take care of the everyday property maintenance. The seller will agree to this %100 of the time. All they have to do is sign on the dotted line and sit back and collect a check from the new investor each month.
The next thing the new investor does is they go to the new tenants that will be occupying their new property. Ask the tenants to treat this property as their own. They will agree to this since they are renting to own the property from you. Some investors will negotiate a specific dollar amount with the tenants. For instance, an investor may negotiate $300 a month that the tenant will pay in maintenance fees. Once that amount is surpassed in any one month, the investor will take care of those expenses. It will be rare that this happens and the investor’s out of pocket is minimal.
To take it a step further, an investor may go to the seller and negotiate the same thing with them, passing any extra costs to the seller, avoiding any out of pocket expenses. If the seller is motivated enough, they will agree to this.
