Can You Turn Around a Rent-to-Own Deal in Just 7 Days?

With the right motivation and the right tactics, you can turn deals around faster than you ever thought possible.

Is it really possible to turn a deal around in seven days? Yep! Just look at this deal one of our High 6 Associates did. They made contact with the seller on a Friday, had a buyer lined up by Monday, and the rest is history.

Here’s how it all went down and some valuable lessons you can use to speed up your next deal.

Using motivation to your advantage

The source of this deal was a Slybroadcast. For those not in the know, this is an automated system we use to send out voicemails to large amounts of people.

In this case, our Associate was sending out voicemails to for-rent-by-owners, meaning people who currently own a property and are renting it out. The idea behind this is that some of these people may be interested in selling—but you’ll never know unless you reach out to them! The Slybroadcast does all the work for you, and in this case, they sent out a blast of somewhere around 150 messages.

They sent this broadcast out on Thursday and made contact with their owner on Friday.

The owner was a woman who owned multiple properties and had a few pain points, which she made clear right from the beginning. She had just had two evictions on another property, plus she had someone break their year lease on the property we were interested in.

That told us one thing right away—she had some motivation to get this property sold. She didn’t want to deal with it anymore and she was tired of these issues that crop up when you are constantly renting your properties.

This was a great opportunity for our Associate to come in and—literally—take the pain away. They decided on an AO deal, meaning we would help her find a buyer (on terms) and then she would take care of the rest.

This was a perfect fit for her, as she wanted it to be non-exclusive. She wanted to still be able to sell it or rent it on her own, so we made it a non-exclusive agreement—meaning, if she found a buyer before we did, she could go do the deal on her own.

(We don’t really mind doing this on AO deals because the chances of us selling it are a lot higher than the owner selling it!)

The fact that our Associate was able to recognize this seller’s motivation right from the beginning is one of the main reasons why we were able to turn this deal around so quickly. Now, with all that out of the way, let’s look at the rest of the deal…

Setting a price and finding a buyer

To quickly recap: the Slybroadcast was sent out on a Thursday, the owner was contacted on a Friday, and we saw the property two days later, on a Sunday.

The owner wanted $275,000 for the home, which was right on the money. We agreed to that and we guaranteed to give her a third of the down payment. (This is how we structure our AO deals. I’ll get into specifics later, but we usually do somewhere between 0% and 33%.)

We ended up selling this house for $300,000, and it took one day. Seriously!

Our associate had sent out an email blast to their list about a different property and got a response from an interested party… They knew this new property would be a good fit for the interested party, so they suggested checking it out as well. It happened to be closer to their work than the other property.

Long story short, the interested party saw the house on Monday and emailed our Associate that night saying it was the perfect home for them. They were ready to put a down payment on it.

And there you have it! We set up a down payment of $30,000, which the seller got a third of. In the end, the seller made an extra $13,250 on this deal compared to what they were expecting. Needless to say, they were pretty thrilled about that.

Because it’s an AO, the lease that our Associate signed over to the seller calls for the buyer to make the down payments to them, and then they disperse it to the seller. All rent payments are paid directly to the seller.

So, in the end, this is a simple and quick deal for everyone involved. We used standard AO forms and had an attorney close out the deal. All of it was taken care of in just seven days.

And there are a few lessons to take away here…

1. Motivation is key. Both the seller and the buyer had a lot of motivation in this deal. The seller didn’t want to keep dealing with the issues they were having, while the owner wanted to get into a house. Our Associate was able to recognize both of these motivations and act on them, which is why this deal came together so quickly. When people are ready, they’re ready—you just need to be able to recognize it and act on it!

2. Lockboxes! I didn’t mention this above, but there is another thing that helped this deal move along so smoothly. Our Associate didn’t go to the viewing with the buyer. In fact, they never do! They simply put a lockbox on all of their properties and give the buyer the code when they are interested in a property. This saves a ton of time for everyone as there is no need to schedule an appointment, drive to the property, and go through the entire viewing.

And THAT is how you turn around a rent-to-own deal in just seven days!

What’s the fastest deal you’ve ever done? Did you learn anything from this deal that you’re going to implement on your next one? I’d love to hear your thoughts.