Hey, glad you liked it! A lot of investors are not comfortable or have the resources to do properly all the advertising the property, showings, tenant screening, lease prep, inspections, handling issues as they arise, etc. A lot of our investors are hands off and too busy in their own careers to learn how to do it or to even want to do it.
@@keyrentersaltlake Yeah I can see that. I got my first tenant buyer to give a $20k non refundable and it only took a few weeks. I have found that signs are very important as well as a good internet presence. I just closed on my second sub 2 so I will do it all over again. 😀
@@ChrisMonroeSTL You must be a very disgusting person. You could have said it differently but wow, banking on other people's miseries as if you've earned a trophy?
If you are able to get $5K upfront for a two year R-T-O lease but they want an extension of another 2 years and you ask for another $3K upfront, at the end when they buy the home, do you credit both upfronts, so you credit $8K or only the last $3K? Also, would you pass on a second upfront fee if they decide to release to own?
Hello and thank you! What is the benefit compared to selling the property right away if the leaser ends up buying let's say after 1 or 2 years. Any numbers? Many thanks
I think I have the most important question. The credits they get for the payments. Would they get $300 credit for paying $1200. Their net credit would be $100 compared to rent $1,000.Or would it be $300 net credit. So you would give them a $500 credit? 2:25
Great info, someone help please, if I buy a house and I have a mortgage, and I made a rent to own, every year taxes and insurance going up, so every year I need to raise that different amount to rent right?
Great video! Q-What if the renter lock in on purchase price of home in option status but the property value dropped due some unforseen economy say recession. Can the tenant walk away? What happens?
The tenant would be screwed, because no mortgage lender funds more than a certain percentage of a home's ACTUAL, appraised value. Either the tenant chooses to buy at the overinflated price and come up with a hunk of their own funding to cover what the bank won't. Or the tenant walks away because they can't get mortgage funding, and loses the downpayment as renter's credits, as described by the video maker.
After the monthy tax from your expense... what about the tax when transfering the property to the tenant who fully paid the terms. Will there be another tax for it?
I don't understand how people can rent to buy when you have written mortgage contract that your house can not be sold to anyone until you get the lenders approval. It is considered fraud to sale a house without getting lenders approval. You would be using a warranty or quick claim deed. I'm not talking about out right sale by a broker, but a private sale by a mortgage holder. Please correct me if l am wrong...Please give the legal facts.
I'm not aware of needing anyone's approval to sell. And I've bought and sold a few homes The major thing with a Mortgage Lender is they virtually have a lien against the house, and they get any outstanding mortgage FIRST. If you sell for more than the remaining mortgage, then you get the rest, less closing costs that can vary.
That's the same as asking what happens when a rental tenant's lease is up. lol. But mainly with lease/option, if they are not exercising their option to buy, they would have to leave...unless all parties renegotiate some new terms. they forfeit their option fee if they choose not to exercise though. The lease is totally separate from the option. They are two different instruments and have two different goals. Hope that helps if you haven't gotten your answer already.
That one cannot fully be answered with out 1 important detail...How did you acquire the house or the ability to control it? Knowing the acquisition gives me a better idea of how you can dispose it. In other words, I need to know your enter strategy to get that house before I can give you a good exit strategy.
what happens when appreciation doesn't go in your favor? lets say when lease term is up and tenant is ready to purchase the home appraises lower that what you purchased at. Is there a way to structure the contract so you don't lose in this scenario?
Wondering about the loss in capital growth until the center exercises their option. It may not be possible to build that into the purchase price. What if the renter is just gambling on capital growth and is intending to flip it one the value goes up.
What about high rental area but, condo the HOA is broke & doesn't qualify for VA or FHA? I could do owner finance but, what if they can't afford the HOA increases & walk?
Yes maybe 300USD out of 2000USD per month. In all honesty, the person who stands the most to win during these agreements are indeed the person providing the house
I have a question Sir. After the tenant failed to purchase the property at the end of 2 year rent to own terms and applied for renewal.. do I have still to impose the same market value of property way back two years ago? Or it has to be increase due to its appreciation. Please help. Thanks.
So the people who offer lease to own don't really have the intention to sell or would want tenants buying it? Like rinse and repeat, keep milking the cow? From some comments here I sensed, that's very predatory and vile.
You are essentually the "bank", the money is yours but you still are responsible for property taxes, insurance, assessments, HOA and mortgage/loan (if there is any).
Rent to own is misleading. Its basically a rent with an option to buy and if you wont buy or purchase then you will loss everything at a higher rental rate or payment. I would rather mortgage a house than have this option
You keep the option consideration payment and can re-rent the home or you can have them pay another option consideration payment to extend the contract. It would work just like a normal renter. They are purchasing the option to buy so if they don’t buy you can negotiate a new rental rate, another lease to purchase or have them move out.
He is giving this information for free. He isn't evil. Why are you judging him? Do you know this man? He is doing a great service to me and my family. I love his videos, he has helped me and my family out with the information he provides. I was able to find homes for Veterans and homeless people. I love to donate my profits to people in need. Thank you Keyrenter
I kinda agree, I get a sick feeling watching this. If the success rate was around 90% that is one thing, but 90% of the people lose their down payment. These are people who are already struggle with money. On top of that he states he uses the credits to lower the total cost of the house so they can pay $280,000 when it only appraises for $260,000. Very predatory and unfortunate. I would set this up to get them into the house even if I only made as much as a traditional rental. I guess I am one of the suckers born every minute.
I myself am looking for a rent to own as a buyer. There is nothing evil about it if I find my interest in it! Let's say I want this house but will only get the cash in 6 months then that is perfect. I know the risk and am willing to take it It is good for the owner too in case I don't get the cash in the end. Everyone is happy.
I agree that things are very much weighted to advantage the company that owns the house. I don't see much of any advantage for the tenant. In fact, they stand to lose, both their downpayment, AND the money they paid as inflated rent (in the form of the "rental credits".
I love that you care about people. So do I. That's why lease options are so great. We give people an opportunity to buy a home they need to rent for a while, rather than giving them notice and selling it out from under them. Whether or not they choose to buy in the end is completely up to them.
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Your statement on #6 tells me everything I need to know about who you prey on….
I'm doing this rent to own is a mobile home land. In California I get $2000 a month for 15 year's.
Wow! Thanks for this information. Now I know I want to be on the other side of the table. An Investor with properties to provide this option!
Great video. Why would you have a property management service on a rent to own? All I am doing at this point is collecting checks 💸💸💸
Hey, glad you liked it!
A lot of investors are not comfortable or have the resources to do properly all the advertising the property, showings, tenant screening, lease prep, inspections, handling issues as they arise, etc. A lot of our investors are hands off and too busy in their own careers to learn how to do it or to even want to do it.
@@keyrentersaltlake Yeah I can see that. I got my first tenant buyer to give a $20k non refundable and it only took a few weeks. I have found that signs are very important as well as a good internet presence. I just closed on my second sub 2 so I will do it all over again. 😀
@@ChrisMonroeSTL so wrong
@@phenitagomes1292 why you say that?
@@ChrisMonroeSTL You must be a very disgusting person. You could have said it differently but wow, banking on other people's miseries as if you've earned
a trophy?
Been wanting to test out a rent to own lease.
Would certainly try drafting one up then having a lawyer review everything. Seems interesting.
Can we ask how we can phrase that to the possible tenants. So that it will feap rhat it's a good deal for them?
Thank you so much for the detailed explanation .
If you are able to get $5K upfront for a two year R-T-O lease but they want an extension of another 2 years and you ask for another $3K upfront, at the end when they buy the home, do you credit both upfronts, so you credit $8K or only the last $3K? Also, would you pass on a second upfront fee if they decide to release to own?
Hello and thank you! What is the benefit compared to selling the property right away if the leaser ends up buying let's say after 1 or 2 years. Any numbers? Many thanks
What happens if I am the tenant and decided to sell the house if I got a good deal to make some money, Do I have that option ?
I think I have the most important question. The credits they get for the payments. Would they get $300 credit for paying $1200. Their net credit would be $100 compared to rent $1,000.Or would it be $300 net credit. So you would give them a $500 credit? 2:25
Does the downpayment your money or those it go into buying the home
Do you have sample/template agreement?
How can get more information on starting out? I have a VA loan to take advantage of?
Great info, someone help please, if I buy a house and I have a mortgage, and I made a rent to own, every year taxes and insurance going up, so every year I need to raise that different amount to rent right?
Great video! Q-What if the renter lock in on purchase price of home in option status but the property value dropped due some unforseen economy say recession. Can the tenant walk away? What happens?
Cathy yes but they will leave the past cash that they gave, On the table.
The tenant would be screwed, because no mortgage lender funds more than a certain percentage of a home's ACTUAL, appraised value. Either the tenant chooses to buy at the overinflated price and come up with a hunk of their own funding to cover what the bank won't.
Or the tenant walks away because they can't get mortgage funding, and loses the downpayment as renter's credits, as described by the video maker.
After the monthy tax from your expense... what about the tax when transfering the property to the tenant who fully paid the terms. Will there be another tax for it?
What happens with home owners insurance? Does the buyer obtain it?
I don't understand how people can rent to buy when you have written mortgage contract that your house can not be sold to anyone until you get the lenders approval. It is considered fraud to sale a house without getting lenders approval. You would be using a warranty or quick claim deed. I'm not talking about out right sale by a broker, but a private sale by a mortgage holder. Please correct me if l am wrong...Please give the legal facts.
I'm not aware of needing anyone's approval to sell. And I've bought and sold a few homes The major thing with a Mortgage Lender is they virtually have a lien against the house, and they get any outstanding mortgage FIRST.
If you sell for more than the remaining mortgage, then you get the rest, less closing costs that can vary.
It's not a mortgage contract, it's a lease contract. There is no sale until the contract is exercised according to how it was written.
Thanks for this video! When coming to end of lease and tenant transistions to buying, does the purchase price of home change with current market?
You can definitely structure your agreements to have a variable price based on market conditions.
If the tenant chooses not to buy how often do they just leave? Or do you have to start an eviction process
That's the same as asking what happens when a rental tenant's lease is up. lol. But mainly with lease/option, if they are not exercising their option to buy, they would have to leave...unless all parties renegotiate some new terms. they forfeit their option fee if they choose not to exercise though. The lease is totally separate from the option. They are two different instruments and have two different goals. Hope that helps if you haven't gotten your answer already.
Is this just good for single family homes or could I also have good investment in a duplex?
You could if the tenant wants to buy the whole property. They would basically own the building and live in one unit.
Great job
Wait so a lease doesn’t mean you are renting it To someone? So the difference is they buy it?
Do you keep the down payment as profit or is that down payment applied to the purchase price of the house??
It is not a deposit. It simply reduces the purchase price.
But so then if I haven’t completely payed off the mortgage how do I sell them the house? Sorry I’m new to this
That one cannot fully be answered with out 1 important detail...How did you acquire the house or the ability to control it? Knowing the acquisition gives me a better idea of how you can dispose it. In other words, I need to know your enter strategy to get that house before I can give you a good exit strategy.
@@jermaineartis4323can you explain both. Want to use both strategies.
The buyer's lender first pays out the outstanding mortgage to your lender. You get what's left, minus closing costs.
what happens when appreciation doesn't go in your favor? lets say when lease term is up and tenant is ready to purchase the home appraises lower that what you purchased at. Is there a way to structure the contract so you don't lose in this scenario?
Wouldnt setting a Sale Price before hand eliminate this issue?
Wondering about the loss in capital growth until the center exercises their option.
It may not be possible to build that into the purchase price.
What if the renter is just gambling on capital growth and is intending to flip it one the value goes up.
What about high rental area but, condo the HOA is broke & doesn't qualify for VA or FHA? I could do owner finance but, what if they can't afford the HOA increases & walk?
I would do 20% non refundable down payment 10% is not enough for the risk.
Does any of the tenants payment go toward the equity of the house?
Yes maybe 300USD out of 2000USD per month. In all honesty, the person who stands the most to win during these agreements are indeed the person providing the house
I have a question Sir. After the tenant failed to purchase the property at the end of 2 year rent to own terms and applied for renewal.. do I have still to impose the same market value of property way back two years ago? Or it has to be increase due to its appreciation. Please help. Thanks.
This is entirely up to how you structure the agreement and the renewal. You state these terms in the option agreement.
Thanks for watching! 🙏🏼
Great video
Where did you get the statistic that lease to owns don't end up buying? THANKS!
Hey! Years of experience and others reporting theirs.
@@keyrentersaltlake thanks!
@@keyrentersaltlake THANKS!
@@anthonysalters9800 You're welcome! we're glad to see that you find our content useful. Feel free to share it.
So the people who offer lease to own don't really have the intention to sell or would want tenants buying it? Like rinse and repeat, keep milking the cow? From some comments here I sensed, that's very predatory and vile.
Thanks great video! How can we get in touch with you
Wait, so who will get the $1,200 monthly renting, you or bank? I’m confused with that part
You are essentually the "bank", the money is yours but you still are responsible for property taxes, insurance, assessments, HOA and mortgage/loan (if there is any).
Does the money they are paying in rent go towards the value of the house for their purchase?
Do you work in St George?
Hey Ryan. Not officially. We have an office there that isn't officially open. Thanks for watching!
good presentation
Thanks!
Retitle the video "How to Legally Scam Tenants"
The rental credits are refundable?
No.
Justin pullin
Jessica massey
Rent to own is misleading. Its basically a rent with an option to buy and if you wont buy or purchase then you will loss everything at a higher rental rate or payment. I would rather mortgage a house than have this option
some families can't get a traditional mortgage from a bank, some families want to "option", even if they know they will loose everything.
Looks to me like you prey on poor people. 90% won't succeed, You know that going in. Their failure is your profit.
Rent to own is just another way to screw your fellow man. DONT DO IT! If you want an owner to be up your ass for years go ahead and RTO.
Illegal surveillance
What happens when the renters can't get a loan at the end of the contract?
You keep the option consideration payment and can re-rent the home or you can have them pay another option consideration payment to extend the contract. It would work just like a normal renter. They are purchasing the option to buy so if they don’t buy you can negotiate a new rental rate, another lease to purchase or have them move out.
This is so wrong on so many levels
why is it wrong?
It provides an Avenue for people who don’t have good credit to buy a property. How is that wrong?
I think lease options are better for the tenant than the traditional route.
This is just evil. Dont you people care about eternity? Its alot longer than you think.
With all due respect sir, what's so evil about a rent to own (a lease with an option to buy something)?
He is giving this information for free. He isn't evil. Why are you judging him? Do you know this man? He is doing a great service to me and my family. I love his videos, he has helped me and my family out with the information he provides. I was able to find homes for Veterans and homeless people. I love to donate my profits to people in need. Thank you Keyrenter
I kinda agree, I get a sick feeling watching this. If the success rate was around 90% that is one thing, but 90% of the people lose their down payment. These are people who are already struggle with money. On top of that he states he uses the credits to lower the total cost of the house so they can pay $280,000 when it only appraises for $260,000. Very predatory and unfortunate. I would set this up to get them into the house even if I only made as much as a traditional rental. I guess I am one of the suckers born every minute.
I myself am looking for a rent to own as a buyer. There is nothing evil about it if I find my interest in it! Let's say I want this house but will only get the cash in 6 months then that is perfect. I know the risk and am willing to take it It is good for the owner too in case I don't get the cash in the end. Everyone is happy.
I agree that things are very much weighted to advantage the company that owns the house. I don't see much of any advantage for the tenant. In fact, they stand to lose, both their downpayment, AND the money they paid as inflated rent (in the form of the "rental credits".
this is digusting!!!! preying on poor people who think their gonna get this house!! PREDATORS
I love that you care about people. So do I. That's why lease options are so great. We give people an opportunity to buy a home they need to rent for a while, rather than giving them notice and selling it out from under them. Whether or not they choose to buy in the end is completely up to them.