What are best practices in structuring RTO deal?

Submitted by alfonso@JAAGproperties.com on Thu, 11/12/2020 - 22:45

This question was asked by Grant, on our Rent To Own Expert webinar
--> When you are structuring a Rent To Own you are trying to create a WIN - WIN - WIN scenario. The Expectations, Agreements and Contracts should be clearly laid our and all parties need to understand what they are getting into. Breakdowns happen when there is a lack of communication throughout the process.... thx for the Q Grant

- March 16, 2021

Adding to Alfonzo's comment its complete transparency up front... tell them the good (home owner in training), the bad (you have to still pay market rent adn a bit more) and the ugly (if this doesnt work out you are not going to get any of your deposits or credits back or hard work you put into the home back). Have that conversation up front - if the ugly part feels hidden until you are halfway thru the process then your potential tenant buyer may also wonder what else you are not telling them. Also make sure you include any familly members that may impact your tenant buyers decision e.g. these are what I call Influencers.. people you dont know but your potential tenants do that are going to be the naysayers, and tell them its a scam. Ask your tenant buyers "is there anyone close to you (friend family member) that you would like involved in our discussions who is going to play an important part in your decision to move forward or not? I'd rather have that individual in our discussions up front as well to avoid my tenant buyers going awol when things were going so well!

- March 16, 2021

This question was asked by Grant, on our Rent To Own Expert webinar
--> When you are structuring a Rent To Own you are trying to create a WIN - WIN - WIN scenario. The Expectations, Agreements and Contracts should be clearly laid our and all parties need to understand what they are getting into. Breakdowns happen when there is a lack of communication throughout the process.... thx for the Q Grant