Welcome back to the Women Invest In Real Estate podcast! This is episode three is our four-part mini-series with Jenn and Joe Delle Fave and we are so excited to dive into today's topic: rent to own. Rent to own has a very specific creative financing strategy that Jenn and Joe are well-versed in.
But, before we get started if you haven't listened to the first two episodes in this mini-series follow these links to check them out:
Jenn and Joe began implementing the rent-to-own strategy in 2017. They had a handful of single-family homes rentals at the time and the thought of being a landlord became overwhelming and simply put, daunting. They were self-managing all of their rentals when they stumbled upon this new process and they decided to take it head-on. The summer of 2017 was a crazy summer for Jenn and Joe. all of their leases were coming due so they decided to give their tenants first right if they wanted to purchase the homes, which none of them did. They all moved out and Jenn and Joe converted all of the single-family homes into rent-to-own properties.
The reason why they love this strategy so much is that they get to help their renters turn themselves into homeowners; what many would call the American dream. While they’re technically losing doors if tenants buy the property but that's okay because they can always get more doors. Their goal is to work with tenant-buyers and collect a large non-refundable option deposit upfront before they move in.
The tenants then continue to pay monthly rent and Jenn and Joe make cash flow each month. also with rent to own the tenant-buyer is responsible for items such as maintenance, any repairs to the property, and all utilities. Also, the tenant is more likely to keep up with all of the repairs and home maintenance when they're planning to purchase the home in the long run and they've already paid the non-refundable option deposit. Those tenants are treating the home like their very own, decorating landscaping and making it theirs and that is a really cool thing to be able to do for someone who might not otherwise have the opportunity to purchase a home.
Some of their favorite ways to advertise their rent-to-own properties are:
With all of these methods, you can typically expect a huge influx of interest, but the key to filtering through all of them is to look specifically for the people who have that non-refundable option deposit, in hand.
That concludes episode three of our four-part creative financing series with Jenn and Joe, make sure you tune in next week for the fourth and final episode! We’ll catch you next week, friends!
Resources:
WIIRE 120: What Should You Be Looking For When You Do a Property Walk-Through?
WIIRE 119: Balancing CEO and Stay-At-Home Mom Life with Kristen Witalka
WIIRE 118: What Financial Tasks Should I Be Doing Weekly, Monthly, & Yearly in my Rental Business?
WIIRE 117: Small and Mighty Real Estate Investing with Chad Carson
WIIRE 116: How to Use Free Marketing for Your Rental Business
WIIRE 115: How to Implement the Entrepreneurial Operating System in Your Business with Maya Bovshow
WIIRE 114: Our CEO Roles as Full Time Real Estate Investors
WIIRE 113: Fourplex From Hell: Resilience as a Rookie Investor with Katie Hofer
WIIRE 112: Legal Contracts You Need in Your Real Estate Business
WIIRE 111: Lessons Learned While Self Managing Rental Properties
WIIRE 110: Ask A&G: Midterm Rental Frequently Asked Questions
WIIRE 109: House-hacking New Build Homes Tax Free with Monica Fullerton
WIIRE 108: Best Tenant Screening Practices
WIIRE 107: Starting Your Real Estate Journey At Any Age with Liz Connelly
WIIRE 106: Increasing Your Profitability without Buying More Real Estate
WIIRE 105: Midterm Rental Operations with Jamie Banks
WIIRE 104: Handling Maintenance Requests Like a Pro
WIIRE 103: Midterm Rental Co-Hosting and Credit Card Hacking with Jaina Pallasigui
WIIRE 102: What Can You Expect At A WIIRE Retreat?
WIIRE 101: Serial Real Estate Entrepreneur with Erika Brown
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