Harder to find TBs? Best way to educate them about RTO

Submitted by alfonso@JAAGproperties.com on Thu, 11/12/2020 - 22:44

This question was asked by Karim, on the Rent To Own Expert Webinar
Full Question: Is it harder to find RTO tenant buyers vs normal tenants? What is the best way to find/educate them about this win-win option?
--> YES, it is definitely harder to find Tenant Buyers versus normal tenants.... I like to think of them as motivated homeowners in training. I find the best way to educate is to explain the benefits of the RTO program and help them way out their options of what else is available.

- March 16, 2021

Where you get your tenant buyers from will depend on the conversion ratio between applicants vs qualified tenant buyers. For example if you market to realtors and mortgage brokers for all their good clients but dont currently qualify for a mortgage, then you just have to educate the potential tenant buyer but they are likely qualified. If you do a Kijiji add then that brings out the potential tenant buyers but also some crazies or delusional (I make $15 a hour and want to buy a $500,000 home!). This latter marketing strategy will have a much lower conversation ratio... likely super low - single digits maybe!

- March 16, 2021

To educate tenant buyers I think you start with webinars directly to people that cant get into the market and maybe buddy up with a mortgage broker or realtor who can use their existing datebase of challenged clients to provide RTO as an option to home ownership. For us we always include RTO as an allternative if we have to decline any of our clients.. if it intrigues them then we can start the discussion. Maybe start by asking mortgage brokers to offer this as a solution to their declines as opposed to just turning them away... not all will work out but the quality should be better than a kijiji add (nothing wrong with these ads by the way)

- March 16, 2021

I couldn't agree more Claire... the education piece is critical. If a MB or a Realtor can offer another way to qualify through a professionayl operated Rent To Own, its WIN - WIN - WIN

- March 16, 2021

This question was asked by Karim, on the Rent To Own Expert Webinar
Full Question: Is it harder to find RTO tenant buyers vs normal tenants? What is the best way to find/educate them about this win-win option?
--> YES, it is definitely harder to find Tenant Buyers versus normal tenants.... I like to think of them as motivated homeowners in training. I find the best way to educate is to explain the benefits of the RTO program and help them way out their options of what else is available.