Home Buying in Philadelphia>Question Details

Shamrock, Home Buyer in Philadelphia, PA

how do you find an investor for a rent to own house?

Asked by Shamrock, Philadelphia, PA Fri May 28, 2010

Help the community by answering this question:


What do you mean? Are you looking for an investor to buy a house that you, the homeowner, has leased out to tenant in a rent-to-own situation?

Or are you looking for a rent-to-own opportunity for yourself to lease a house with an option to purchase, or a lease/purchase agreement?

Either way, I can help you achieve your goal. Please feel free to call me to discuss how I can assist you.
Have a great weekend!

All the best,
Larry Lichtman
REALTOR, Property Manager
Your Real Estate Resource For Life
Cell (267) 254-7994
1 vote Thank Flag Link Sat May 29, 2010
I went into a eviction and my lawyer said I need a investor to get it back do you know someone so I can rent to own my house back
0 votes Thank Flag Link Sun May 31, 2015
Rent to own homes. All areas, all prices ranges. Low Down, huge rent credits, price protection http://rent2ownprograms.weebly.com
0 votes Thank Flag Link Tue Jul 23, 2013
hi larry my name is jackie and i am looking for an investor to purchase a home for me. I can get a mortgage in 1 year.
0 votes Thank Flag Link Sat Sep 1, 2012
Well, people like SHAMROCK contact my office all the time asking about lease-to-own options. They are most often seeking properties of at least 3 bedrooms in various neighborhoods of Philadelphia. I don't have a lot to offer them most of the time. I'd be glad to know you, Dp2, and others like you, to whom I might turn when the opportunity arises.

Hannah Angert

William Festa Realty
3001 S. Sydenham St.
Philadelphia PA 19145

(215) 271-3000
0 votes Thank Flag Link Sat May 29, 2010
Although most sales in Philly don't involve these kinds of transactions, I know that some investors (myself included [every now and then]) are doing lease-options in Philly. One can find some of them via various posts on Craigslist.com, Backpage.com, Kijili.com, etc. One can also see some of those "bandit" signs posted along various streets with advertising for rent-to-own properties. Plus, some investors PREFER to market their lease-option deals directly (meaning without a listing agent). (I prefer to let an agent handle the marketing, so that I can focus on what I do best.)
0 votes Thank Flag Link Sat May 29, 2010
All of the commentary and education here is wonderful, and enlightening. I think that what Mr Tepper describes below is uncommon in our market, though. It's been my experience in Philadelphia that both parties have already decided what they want to do before contacting the Realtor for advise and transaction management, paperwork, lease agrements for a rent-to-own. I've seen it between long term tenants and owners, family members and owners, etc. I'm curious if others in the conversation have found the same thing?
0 votes Thank Flag Link Sat May 29, 2010
Hi, Shamrock.

Don provided a very good answer to your question. There's not much left to educate you on except for the fact that you need to find a seller/investor who would entertain this option. How can you do that? Make sure you have a trusted real estate agent that understands all of your needs and will do some extra leg work. Since finding this particular situation is not as easy as just renting or buying on their own, you will need to search more for the right opportunity.

Please let me know if you have any more questions that I can help with (tgarrity@brownmckinney.com).

0 votes Thank Flag Link Fri May 28, 2010

Since you describe yourself as a "Home Buyer," I assume you're looking for an investor to put together a rent-to-own deal, or to sell you a rent-to-own home.

As Temi says, if you're interested in a rent-to-own home, you can search one out yourself. Here's a blog I wrote on how to find lease-option and rent-to-own homes: http://www.trulia.com/blog/don_tepper/2010/03/how_you_can_fi…

If you're interested in finding a deal already put together, you can find investors who do that at local real estate investment clubs. Here's a link to the clubs in Pennsylvania: http://www.creonline.com/real-estate-clubs/pa.html

If you were interested in having an investor take your current home (as Hannah thought you were asking), the investment clubs are a great place for that, too. To answer Hannah's question: Many investors LOVE lease-options. It's called a sandwich lease-option.

Just a quick scenario: Suppose someone wants to rent their home for $1,000 a month or sell it for $300,000. I negotiate a 4-year lease-option with them. Just making these numbers up, but let's say I agree to rent it for $950 a month with an option to purchase for $295,000. I don't pay an option fee. (Yes, it's possible to do that.)

I turn around and advertise the home: "No bank qualifying! Nice 3 bed/2 bath in Chantilly available now. Payments as low as $1,250 a month. Just 3 payments moves you in! Poor credit OK." So, what am I doing here? I'm getting an up-front option fee of $4,200 (the "3 payments moves you in!") I'm getting $300 a month positive cash flow. Oh, and I've priced the house as $315,000. So if the tenant-buyer exercises the option, I make an additional $20,000 (the spread between $295,000 and $315,000). Will its value rise from $300,000 to $315,000 (for it to appraise) in 4 years? Probably. If not, we can extend the option. Or the tenant-buyer has the option of simply walking away. What if property values climb and it's worth more than $315,000--say $330,000. Well, I've still made $300 a month and $20,000. And the tenant-buyer can buy a property worth $330,000 for only $315,000. Not a bad deal for the tenant-buyer.

What's my rate of return? Impossible to calculate since I didn't put any money into the deal. But, as some would say, "It's good enough."

Yes, investors love rent-to-own situations.

Anyhow, Shamrock, that's how you find rent-to-own houses. Whether you do it on your own or use an investor.

Hope that helps.
0 votes Thank Flag Link Fri May 28, 2010
Don Tepper, Real Estate Pro in Burke, VA

I'm trying to understand your question. Are you looking to rent to own a home and think only an investor can offer that or are you looking to rent your own home and think only an investor can do a rent to own? I see you're in Philly I actually have a rental in Philly that the tenant just moved out of so if you want to rent to own that you could. But clarify your question a bit and I can see what I can do to help.
Web Reference: http://www.tahomesearch.com
0 votes Thank Flag Link Fri May 28, 2010
Why would an investor rent to own? An investor wants to buy, not rent.
0 votes Thank Flag Link Fri May 28, 2010
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