I am looking to specialize in Lease to Own

[Lucas]

I am looking to take the next steps in becoming a "Lease to Own" expert. I just attended a Tony Peters workshop and was absolutley blown away by the potential and by the business model.

I am looking for forum recommendations on Lease-to-Own specialists and the systems that they have created. Please substantiate your recommendations with personal experience or something equivalent.

Also, I would love if the "Lease-to-Own" experts themselves would explain the benefits of their particular system.

I would like to keep this thread positive. Please refrain from steering it into an ethical debate or a combatative argument btw respective systems. I am just looking for recommendations.

Thanks in advance,

Lucas

 

[markl]

The problem with all your questions is one would have to write a novel to respond in fact I did.

What are you interested in? There are only 3 strategies I can see. Tenant first, Property first and Sandwich lease options.

What are you specializing in?

What are your goals you want to get out of specializing?

What are your goals in particular? not regarding LTO

Myself and my team have done a couple of hundred LTO`s over the last several years. People who I have taught have done numerous LTO`s as well. We do a couple a week at this point.

All the strategies work all have their upsides and their down sides. I believe my presentation I made to REIN is available for download I would suggest going through that it talks of benefits and risks involved with the different strategies.

Regards,

 

[Lucas]

Thanks Mark,



I appreciate you taking the time to respond.



I am still in the initial stages of planning. My first step was taking Tony's workshop. This is my next step...finding out what other people are doing!!



Thanks again and I will definitely check out the downloadable presentation.



Lucas




QUOTE (markl @ Jan 22 2010, 08:28 AM)
The problem with all your questions is one would have to write a novel to respond in fact I did.



What are you interested in? There are only 3 strategies I can see. Tenant first, Property first and Sandwich lease options.



What are you specializing in?



What are your goals you want to get out of specializing?



What are your goals in particular? not regarding LTO



Myself and my team have done a couple of hundred LTO's over the last several years. People who I have taught have done numerous LTO's as well. We do a couple a week at this point.



All the strategies work all have their upsides and their down sides. I believe my presentation I made to REIN is available for download I would suggest going through that it talks of benefits and risks involved with the different strategies.



Regards,

 

[GaryMcGowan]

Mark`s book is definitely a great resource and will add to what you have already started to learn.

 

[AndyLuchies]

Although I think Mark`s way is the best

,

A simple strategy for property first RTOs is as follows.

Buy a good property in a top 10 town.
Advertise in the paper/kijiji as a RTO opportunity and direct them to a 24hr message (evoice.com) which says what an RTO is and gives the time/date when you`ll be showing the property to everyone. Ask for them to leave their phone number/email so you can respond.
Phone them to confirm their attendance at the open house
Show up at open house, lead everyone through the property and sign the person who`s willing to give the biggest deposit down (after checking to make sure they can handle the payments).

Because of increased turnover with property first RTOs its essential to systematize your tenant selection process efficiently. And often you can fill your property in one afternoon.
The key is to buy nice properties that people want to live in.

(of course there`s much more detail than the above, but those are the basics. Just so you know, I`ve never done one of these but have a good system in place for if I do- courtesy of a rent to own organization that I`m a part of called "Income For Life")


The benefit to property first is that you choose the properties you want, and in effect, its a long-term buy and hold strategy with a funky way to get MUCH better cashflow, and a chance that someone will buy your property at a great ROI in the future.

The benefit to tenant first is your tenants are more likely to buy from you, are more committed to the house they chose, and sometimes can have more money to put down (because they`ve had more time to save up).

In general I prefer the tenant first strategy because over all, I think its more helpful to the tenant. One of the reasons my wife and I chose rent to owns was because of the positive impact you can have on a tenant.

Any others want to comment/correct my simple outlines?

 

[markl]

For a property first RTO some of the big reasons why

you get to pick the house you might get a great deal on it or buy it below market fix it up and raise the value instant equity. Most times these houses will cash flow or break even as normal rentals so worst case scenario you are not out of pocket.

Now you tell me if this is a positive or negative people are less likely to purchase the property at the end of the term. Therefore you put another tenant in and collect another deposit and you have paid down X years of mortgage and had X years of appreciation.

There are strong arguments to both ways.

To be honest we do a combination of the 2 although the majority is tenant first we like to find good deals and then fill them.

Regards,

 

[Lucas]

Thank you both (Andy and Mark)...



I am leaning toward tenant first RTO's. However, I still want the authority to make the final decision when purchase time comes.



The reason I like the tenant first is that they are likely to purchase the property at the end of the term. I like the idea of less time spent on the deal...Is this the case with tenant first?



I think one of my stipulations to the Realtor (who will be me for now...hehe) will be that EVERY propert the buyer/tenant looks at will make sense as a regular rental.



Mark: Do you have sellers approach you to purchase their homes? Ultimately this would be ideal...



Thanks again,



Lucas




QUOTE (markl @ Jan 22 2010, 03:54 PM)
For a property first RTO some of the big reasons why



you get to pick the house you might get a great deal on it or buy it below market fix it up and raise the value instant equity. Most times these houses will cash flow or break even as normal rentals so worst case scenario you are not out of pocket.



Now you tell me if this is a positive or negative people are less likely to purchase the property at the end of the term. Therefore you put another tenant in and collect another deposit and you have paid down X years of mortgage and had X years of appreciation.



There are strong arguments to both ways.



To be honest we do a combination of the 2 although the majority is tenant first we like to find good deals and then fill them.



Regards,

 

[Lucas]

The problem with all your questions is one would have to write a novel to respond in fact I did.

By the way...this is a funny line...

 

[MarkTorgerson]

QUOTE (markl @ Jan 22 2010, 07:28 AM)
The problem with all your questions is one would have to write a novel to respond in fact I did.



What are you interested in? There are only 3 strategies I can see. Tenant first, Property first and Sandwich lease options.



What are you specializing in?



What are your goals you want to get out of specializing?



What are your goals in particular? not regarding LTO



Myself and my team have done a couple of hundred LTO's over the last several years. People who I have taught have done numerous LTO's as well. We do a couple a week at this point.



All the strategies work all have their upsides and their down sides. I believe my presentation I made to REIN is available for download I would suggest going through that it talks of benefits and risks involved with the different strategies.



Regards,






Hi Mark



What do you mean by a sandwich lease?

 

[markl]

Sandwich lease is when the investor lease options the property off somebody and then re lease options it to the final tenant. Hence they are the meat in the sandwich.

This is a lot of what the American Seminar companies will teach you but they are very difficult to do and you have to be a very good salesperson on both ends of the transaction I like simpler and therefore more easily repeatable.

 

[markl]

QUOTE (Lucas @ Jan 22 2010, 10:59 PM) The problem with all your questions is one would have to write a novel to respond in fact I did.

By the way...this is a funny line...

I try to be funny in my own way

 

[Lucas]

Hey Mark,



Did you notice my questions/statements/assumptions in my previous post (3 posts up or so...)? Are the statements/assumptions accurate?



Which "type" of RTO transaction do you prefer? Which type do you do the most of?



Do sellers approach you to purchase their homes? If so, do you market specifically to these people (ie. I buy houses adverts)?



I suddenly feel like that annoying kid at the front of the class asking too many questions...lol



Thanks in advance!!



Lucas




QUOTE (markl @ Jan 22 2010, 10:59 PM)
I try to be funny in my own way

 

[markl]

QUOTE (Lucas @ Jan 23 2010, 01:07 AM) Hey Mark,

Did you notice my questions/statements/assumptions in my previous post (3 posts up or so...)? Are the statements/assumptions accurate?

Which "type" of RTO transaction do you prefer? Which type do you do the most of?

Do sellers approach you to purchase their homes? If so, do you market specifically to these people (ie. I buy houses adverts)?

I suddenly feel like that annoying kid at the front of the class asking too many questions...lol

Thanks in advance!!

Lucas

90% of my LTO business is tenant first. I prefer this method.

I do get sellers approaching my to buy their houses. This is really just a bi-product of being active in different real estate markets. I do not advertise or market for these deals.

 

[MarkTorgerson]

QUOTE (markl @ Jan 22 2010, 09:59 PM) Sandwich lease is when the investor lease options the property off somebody and then re lease options it to the final tenant. Hence they are the meat in the sandwich.

This is a lot of what the American Seminar companies will teach you but they are very difficult to do and you have to be a very good salesperson on both ends of the transaction I like simpler and therefore more easily repeatable.


I have been doing lots of research on various lease-to-own companies and which ones seem to be successful. For the most part, the successful ones are very different than the Legrand style.
I have seen many of them being basically a "middle man" on the transaction. This is where they will say pay $300,000 to the seller (through lease to own) and then advertise the same property for around $350,000 on a 3 year lease-to-own (for example). What I am seeing is that they will advertise the sellers property but not committ to it until they find a buyer. If a buyer doesn`t committ to the property being advertised, it simply goes back to the seller. This does seem like a great business model as the inventory is always high with zero risk. Do you do these types of transactions and would you consider this a "sandwich lease"?

Thanks!

 

[Lucas]

Thanks!!




QUOTE (markl @ Jan 23 2010, 12:11 AM)
90% of my LTO business is tenant first. I prefer this method.



I do get sellers approaching my to buy their houses. This is really just a bi-product of being active in different real estate markets. I do not advertise or market for these deals.

 

[therealpotentials]

QUOTE (Lucas @ Jan 21 2010, 11:08 PM) I am looking to take the next steps in becoming a "Lease to Own" expert. I just attended a Tony Peters workshop and was absolutley blown away by the potential and by the business model.

I am looking for forum recommendations on Lease-to-Own specialists and the systems that they have created. Please substantiate your recommendations with personal experience or something equivalent.

Also, I would love if the "Lease-to-Own" experts themselves would explain the benefits of their particular system.

I would like to keep this thread positive. Please refrain from steering it into an ethical debate or a combatative argument btw respective systems. I am just looking for recommendations.

Thanks in advance,

Lucas

 

[therealpotentials]

You`re already blown away by Tony Peters, as you`ve said. Why not take his system? He`s a Least-To-Own specialist, isn`t he?






QUOTE (Lucas @ Jan 21 2010, 11:08 PM) I am looking to take the next steps in becoming a "Lease to Own" expert. I just attended a Tony Peters workshop and was absolutley blown away by the potential and by the business model.

I am looking for forum recommendations on Lease-to-Own specialists and the systems that they have created. Please substantiate your recommendations with personal experience or something equivalent.

Also, I would love if the "Lease-to-Own" experts themselves would explain the benefits of their particular system.

I would like to keep this thread positive. Please refrain from steering it into an ethical debate or a combatative argument btw respective systems. I am just looking for recommendations.

Thanks in advance,

Lucas

 

[Lucas]

Hi Vener,

I did enjoy Tony`s workshop. I just want to compare his system with others AND get as feel for what other people are doing.

Also, I wanted to create a thread where this type of investing is discussed as I am very serious about moving forward into the industry.

Thanks,

Lucas



QUOTE (therealpotentials @ Jan 23 2010, 10:00 AM) You`re already blown away by Tony Peters, as you`ve said. Why not take his system? He`s a Least-To-Own specialist, isn`t he?

 

[tonypeters]

Lucas,

As you are already aware, there are many different things that will help to create success for a Tenant/Buyer and the Investor in a "Lease To Own" transaction. If certain steps and or procedures are not followed, it is so easy to create failure for all stakeholders involved. To put things into perspective for you, it has personally taken me over seven years to perfect my own way of doing business. Did we have failure in the early going...ABSOLUTELY!

You have probably heard this saying before...The path to success is paved with failure! This statement could not be any closer to the truth!

Sir Winston Churchill was once quoted as saying..."Success consists of going from failure to failure without loss of enthusiasm." I am sure glad I maintained my enthusiasm in the early going!

This business can be very lucrative and extremely rewarding from both a "financial", and a "helping others achieve the ultimate dream of home ownership" perspective, but in order to achieve this, it is imperative that you go about the business with the correct attitude and with a solid understanding of the concept.

I could write a book (as Mark Loeffler has already done, and I will be doing myself) on this particular subject, so I will not attempt to do this on this particular thread, not to mention the fact that I can cover a lot more ground verbally than I could ever do trying to type. I don`t mind admitting it, I am one of those "two fingered" typers. The funny thing is, I can type at an amazing speed!

With this in mind, I would be more than happy to sit down with you over a coffee and spend some time reviewing the "what you should know" before you step into the "Lease To Own" arena with you if you would like?



QUOTE (Lucas @ Jan 23 2010, 01:58 PM) Hi Vener,

I did enjoy Tony`s workshop. I just want to compare his system with others AND get as feel for what other people are doing.

Also, I wanted to create a thread where this type of investing is discussed as I am very serious about moving forward into the industry.

Thanks,

Lucas

 

[Lucas]

Thanks Tony,

I appreciate your thoughts...I definitely see the benefit in creating successful situations for both Tenant/Buyer and myslef in these transactions. Obviously, this model would lend to a much more sustainable business...and ultimately a much more profitable one.

I will definitely take you up on coffee...

Thanks again,

Lucas


QUOTE (tonypeters @ Jan 23 2010, 03:55 PM) Lucas,

As you are already aware, there are many different things that will help to create success for a Tenant/Buyer and the Investor in a "Lease To Own" transaction. If certain steps and or procedures are not followed, it is so easy to create failure for all stakeholders involved. To put things into perspective for you, it has personally taken me over seven years to perfect my own way of doing business. Did we have failure in the early going...ABSOLUTELY!

You have probably heard this saying before...The path to success is paved with failure! This statement could not be any closer to the truth!

Sir Winston Churchill was once quoted as saying..."Success consists of going from failure to failure without loss of enthusiasm." I am sure glad I maintained my enthusiasm in the early going!

This business can be very lucrative and extremely rewarding from both a "financial", and a "helping others achieve the ultimate dream of home ownership" perspective, but in order to achieve this, it is imperative that you go about the business with the correct attitude and with a solid understanding of the concept.

I could write a book (as Mark Loeffler has already done, and I will be doing myself) on this particular subject, so I will not attempt to do this on this particular thread, not to mention the fact that I can cover a lot more ground verbally than I could ever do trying to type. I don`t mind admitting it, I am one of those "two fingered" typers. The funny thing is, I can type at an amazing speed!

With this in mind, I would be more than happy to sit down with you over a coffee and spend some time reviewing the "what you should know" before you step into the "Lease To Own" arena with you if you would like?