185: How “Rent-to-Own” Can Increase Cash Flow and Maximize Equity with Bill Powers

On today’s episode of The BiggerPockets Podcast, Josh and Brandon sit down with Bill Powers, a real estate investor from the Chicago suburbs, to learn how he went from zero to over 70 units in five yearswhile focusing on lease options — also known as “rent to own.” This powerful strategy is one that anyone can begin using in their business to achieve more cash flow and equity — and today, you’ll learn all the details. Get your pen and paper out for this show — you’ll want to take some notes!

In This Episode We Cover:

• How Bill got started in real estate
• All the mistakes he made on his first house
• Tenant screening must-haves
• How exactly rent-to-own works
• What the first look program is
• What you should know about the 2% rule
• How to not be a predatory investor
• Tips for running your business the right way
• A discussion on “instant equity“
• Why some people are not fulfilling their lease options
• A profile of common tenants who go for rent to own
• What is Dodd-Frank is and how it affects people who use lease options
• Things to note before going for a lease option
• What the future of his business is
• How many hours he works in a week
• And SO much more!

Links from the Show

• How I Found My Five Latest Real Estate Deals! (Five Different Strategies)
• BiggerPockets Webinar
• BiggerPockets Forums
• Zillow
• Rent.com
• Trulia
• Secure Pay One

Books Mentioned in this Show

• The Book on No or Low Money Down by Brandon Turner
• The Book on Estimating Rehab Cost by J. Scott
• The Golden Rules by Bob Bowman

Tweetable Topics:

• “Where rents are highest and acquisition of capital is lowest, that’s where we focus.” (Tweet This!)
• “I think you can always flip. I think there’s spread on properties all the time.” (Tweet This!)
• “There are ways to lose money on flips even if you make money — because opportunity cost is a big factor on that.” (Tweet This!)
• “Don’t be enticed completely by the flip side of things. Look long term.” (Tweet This!)

Connect with Bill

• Bill’s BiggerPockets Profile
• Bill’s Company Website

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