A guy my age also got started in the rent to own business by accident. He tried, and tried, and tried, and tried to sell his home.Then, he had a guy offer him $5000 down and to buy his home from him in 12 months.
He then had to move again, and same thing. He couldn't sell his home, and again, someone offer him a similar deal.
The third time he moved. He just advertised rent to own and had it sold the same day the ad hit the paper.
One thing I like about the way he does his rent to owns is he really doesn't care if he makes very much money over what his payment is. He will rent it to him for his cost, but he puts the lease option out 2 to 3 years.
He was telling me one month that he had two people exercising their option, and that he planned on making about $40,000 to $60,000 on the back end.
He was discouraged because now he would have to go find another home.
What a problem to have?
I like the fact that he isn't in a hurry to sell, and that his pay day is huge on the back end.
He also puts at least 20% down so he doesn't have to pay mortgage insurance. This definitely helps keep the payment low, and helps him build equity faster since he isn't quite so leveraged.
He now just buys a home that is bread and butter. "3 bedroom 2 bath, and at least a double car garage", but he gets a really good deal.
That is the key because you make your money when you buy.
He actually buys in the higher price ranges which I think isn't totally smart since most of your buyers are wherever the median home range is in your market. Currently in Bonneville county our median price range is about $154,000.
Then he finds the buyer.
BUYERS BUYERS BUYERS BUYERS BUYERS BUYERS
http://www.seidahohomes.com/
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