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Updated over 13 years ago on . Most recent reply
How to Wholesale a "rent to own" Property
Hello BP!
How do I make an profit as a wholesaler, finding a deal for a family looking to rent to own only?
either through a FSBO or Broker?
Most Popular Reply
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Be realistic. There's very little money on the table in a typical "rent to own". The option fee might be 3% or some such. The landlord/seller is going to want that cash to go into the deal. Even if they give you half that money you're getting 1.5% of the purchase price.
Sellers who are selling with a rent-to-own situation are either investors who know what they're doing or desperate sellers who are willing to jump through a few hoops to get rid of their property. Only the latter needs your help. It sounds like you're been contacted by someone who wants to buy a house with a rent-to-own deal. Do you have some desperate sellers that would do such a deal and give you a cut of the up front cash?
If not, and you're going to start searching for such a deal, is the tenant/buyer willing to pay you out of their own pocket if you find something?
Wholesaling means finding good deals and passing them along to investors. If you want to deal with retail buyers, or, in this case, tenants, why not just get licensed?