I've got 2 properties I want to sell as "Rent to Own". Ideas?

[Colton T.]

I haven't structured a lease-to-own deal before and have a couple of properties we've fixed up and want to sell this way, vs. listing as regular sales. I want the deals to be fair but desirable for the sellers/landlords as well. What are some good ways to structure a fair deal for the buyers with a good return for the holders? Current term types?

Thanks for your ideas in advance!

[Nathan Gesner]

I have a lot to say on this, but I'll keep it short.

Don't do it. I estimate more than 80% of all lease-option deals fall through. The people attempting to buy under a lease-option are unable to qualify with a traditional lender, which is why they show up on your door. Why won't the lenders work with them? Because they are unknown or high risk and banks know it's a waste of time. Why would you waste your time with someone the bank won't touch?

If you do decide to do it, do some Google research to learn the basics. Search for "structure a lease option" and try to read a lot of different articles to get a basic understanding. Then talk to an attorney so you're protected.

If you didn't hear me the first time, let me say it again: don't do it. Rent the house or sell the house.