support. If they don’t care enough about their own flesh and blood, they surely won’t care about you! Why would you use the Rent to Own technique? In most cases you will use the Rent to Own strategy as an alternative to either renting your property or retailing your property. Some of the reasons you would use the rent to own technique are: a] Property may be located in an area that does not completely lend itself to an outright sale. Possibly an area where 50% of people are tenants and other 50% are owners. When you have the Rent to Own technique as part of your real estate arsenal you now have the ability to buy in tenant occupied areas and still realize the same profits you would in owner occupied areas. Having this broad of a market to buy in greatly increases your chances of buying at greatly reduced prices on a more consistent basis. b] Property was listed for retail sale but for whatever reason is not selling. c] Mortgage market has tightened up lending criteria making it more difficult for low to moderate income buyers to qualify for a mortgage d] To avoid the expense of current income tax bracket creep. e] To simply diversify your real estate strategy / portfolio. It’s all about “Multiple Streams of Income” in this business. The more streams the better. A perfect mix is accomplished by utilizing the Buy Fix and Sell technique, Buy and Hold technique and the Rent to Own technique at different times throughout the course of the year. F] To maximize your profits. When using the rent to own strategy you can usually command a premium sale price. Plus you will not be paying any real estate agent commissions. Benefits of Selling Your Properties Using the Rent to Own Technique Non Refundable Option Deposits – This deposit is the fee you charge to give your tenant/buyer the option of purchasing the property from you at a later date for a pre-determined price. The deposit should be priced at between 2-5% of the final sale price. This deposit should only be credited to your buyer if they decide to exercise their option to buy the property from you.
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