Real Estate Investors Don’t Say Rent-to-Own

I admire people who choose to learn, and to change their lives with real estate investing. It’s the foundation of most great wealth, and a personal home represents the biggest investment most people will ever make in their lives.

But, I don’t admire the people who capitalize on aspiring real estate investors by selling classes filled with tips, techniques and big, big promises. Nobody can sell a course that’s 100% hard truth, because nobody would buy it. None of us want to hear how hard it is, especially at first.

We’ve had quite a few callers lately who ask, “Do you have any houses available on rent-to-own?” It makes me think somebody is teaching them to make those calls.

My first thought when I hear that question is, “oh boy, somebody sold you a fairy tale...”

If I’m driving around, looking at properties or traveling for a few hours, sometimes I’ll ask the caller where he or she got the idea that houses are the same as couches and refrigerators. Usually we get into a deeper conversation and the caller discovers there are better ways to find investment property than making rent-to-own phone calls, because I share some of my experience and what works in the real world.

If I don’t have time to chat, I don’t ask my question. I just say, “No,” and that’s the end of it.

Here’s the gist of many rent-to-own conversations over the years – If a seller advertises a house, and they call it a rent-to-own deal, run the other direction. Don’t even talk to them. They are either ignorant or crooked, and neither of those is good for you.

If you are looking for owner financing, then for heaven’s sake just ask, “Are you offering owner financing?” That’s a great question, and you’ll never know the answer until you ask. Owner financing is a legitimate real estate term, and sellers may offer it for their own reasons. They are not necessarily offering to help you out, but they have their own financial reasons to collect monthly payments as income, instead of a lump sum from a typical real estate transaction.

When I receive calls asking if we offer owner financing, I think the caller is smart. He or she is looking for an opportunity to buy a property without applying for a mortgage, and that’s perfectly fine.

People who are starting their journey into real estate investing might not realize that the words we use can make all the difference. Investors have their own, unique language, and it’s a wise use of your time to learn that language, for your own sake. Experienced investors will understand what you’re saying if you ask about rent-to-own, but they will judge you, as I do.

Using the right words can make all the difference to your success in finding and buying houses, to sell for a profit later. That’s what it’s all about now, just as it’s always been – buy low, sell high, or at least sell for more than you paid. And it’s a whole lot easier to succeed if you use the right words.