\I never have really had any competition in the rent to own business other than I have observed how other people do it, and I would like to share some of their strategies.An older guy had quit his really high paying job working at the site. Let's call him Ed. He had developed software that he was trying to sell to people wanting to do rent to owns for $50 to figure rate of returns.
I kind of thought this was a silly idea, but maybe he will hit it big. Who knows?
He networked with bankers, and investors to get his leads. One bank in particular would give him about a deal a month. He would then take the people out with a realtor or to for sale by owners and pick the house that he thought was best.
What I like about his strategy is that he would say you pick a house, if I don't like it, I will pick a better one for you.
The couple of experiences I had with him, he did this very thing. The clients would pick a house he would say, I will only buy this if you pick this one over here, and explain why to them it is a better home.
He would do a 1 year, 2 year, or 3 year lease. He had more money and so he put more down. He would put down at least 20% which got him out of paying the mortgage insurance.
I emailed him several times saying he should become a realtor because then he would get paid 3% on top of that, but he was totally content with doing it the way he has done it.
He also thought that being a realtor and doing it the way he was doing it, was a conflict of interest.
I know from reading Robert Allen's real estate books that he kind of felt the same way.
I on the other hand have mixed feelings about that. See chapter 7.
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