How do I find rent to own properties?

Asked by Heather Williams, Normal, IL Tue Jul 15, 2008

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8
Don Tepper, Agent, Burke, VA
Wed Jul 16, 2008
There are many ways to find rent-to-own properties. It depends on your neighborhood, what you're looking for, what you can afford, your comfort zone. So, read through the list and pick 3 or 4 that make sense to you.

Here's how to do it.

To find rent-to-own properties, you often have to use some creativity. Most aren't listed on the MLS.

**Using a Realtor**
[Note: If you use a Realtor--which is fine--ask them how they'd find properties where the seller is willing to do some of the financing. If they can't come up with more than 1 or 2 of the answers below, find another Realtor.]

--Some rent-to-own properties (for simplicity's sake, from here on I'll refer to finding lease-options--in other parts of the country, similar arrangements may be called land contracts or contracts for deed) are listed in the MLS. Not too many, but some. That's where to begin. However, that's not where to end.

--Search for homes that are listed both to rent and to sell. There may not be any comment that the property is a lease-option, and maybe it didn't even occur to the seller. But a property that a seller is willing to lease, but is also willing to sell is a perfect candidate for a lease-option.

--Search for homes that are listed for rent, but were previously listed for sale. It's likely that the owner was trying to sell the house, but wasn't able to. Now he/she is willing to rent it. That's another perfect candidate for a lease-option.

--Search for homes that are listed for sale, but were previously listed for rent. In today's market, there will be fewer of them, but it happens.

--Search for homes with expired listings. The owners wanted to sell, but weren't able to. Many will consider renting the property, especially if it's vacant.

--Search for homes listed for sale that are vacant. The owners are hurting. They might appreciate the cash flow they'd receive from leasing the property.

--Search for homes listed for rent that are vacant. Again, the owners are hurting. And most owners of single family homes are "reluctant landlords." That wasn't their long-term strategy. Especially if they're bleeding, they may just want to get the property off their hands.

***Not Using a Realtor***

I'm not advising doing it yourself, but you certainly can. However, here are a few other ways to do it.

--Advertise on sites like CraigsList for a lease-option. Advertise under both the rental and purchase areas.

--Go through the papers and look for properties that owners are trying to rent out. A lot of them won't be listed in the MLS. Approach them and explain that you'd like to rent their property for awhile, then have the option to purchase it.

--Look for FSBOs. Same basic pitch to them. You'd like to buy their house, but would like to rent it first.

--Choose a neighborhood you like. Knock on doors. Ask, "Do you know anyone in this neighborhood who might be interested in selling their home?" Often, you'll turn up people before the home is listed. Again, you explain you're interested in buying, just renting awhile first.

--Put cards up in your local supermarket.

--Attend a meeting of your local real estate investors club. It may cost $10 or $15, or maybe nothing. There's usually a time near the beginning of the meeting when investors can stand up and offer or solicit deals. You can stand up, too, and announce that you're looking for a rent-to-own. Specify what you're looking for (number of bedrooms, baths), geographic location, type of property (townhouse, single family home, etc.), maximum amount you're willing to spend on rent and purchase, and anything else that's relevant. Print up some one-page factsheets with details. Make sure you put all your contact information on there. Go to http://www.creonline.com for a list of investment clubs.

Hope that helps
1 vote
Greg Zavitz, Agent, Bloomington, IL
Mon Apr 20, 2009
Hi Heather,

Call me and I can discuss the process with you 309-275-4734. No obligation... it's just too hard give someone all the correct info with out knowing what you really are looking for.
Web Reference:  http://www.gregzavitz.com
0 votes
Vicky Chrisn…, , 20176
Wed Jul 16, 2008
A seasoned agent is best to assist you with this - you'll want to make sure the "to own" part is done well. If you'd like a referral to an agent in your area, please email me directly with your contact information. vchrisner@Kw.com
0 votes
Ken Herrera…, Agent, Las Vegas, NV
Wed Jul 16, 2008
Hello Heather,

Have you tried contacting a local Realtor to help you find homes that are rent to own? Try a Realtor first, then look in your local newspaper.

Good Luck,
Web Reference:  http://www.C21Infinity.com
0 votes
Bill Eckler, Agent, Venice, FL
Wed Jul 16, 2008
Heather,
Your best bet is to identify a realtor to work with you. They will be able to focus your search on the specifics of your criteria.

Happy hunting,
The "Eckler Team"
0 votes
Don Tepper, Agent, Burke, VA
Wed Jul 16, 2008
There really is no "best" way to find them. It depends on your neighborhood, what you're looking for, what you can afford, your comfort zone. So, read through the list and pick 3 or 4 that make sense to you.

Here's how to do it.

To find rent-to-own properties, you often have to use some creativity. Most aren't listed on the MLS.

**Using a Realtor**
[Note: If you use a Realtor--which is fine--ask them how they'd find properties where the seller is willing to do some of the financing. If they can't come up with more than 1 or 2 of the answers below, find another Realtor.]

--Some rent-to-own properties (for simplicity's sake, from here on I'll refer to finding lease-options--in other parts of the country, similar arrangements may be called land contracts or contracts for deed) are listed in the MLS. Not too many, but some. That's where to begin. However, that's not where to end.

--Search for homes that are listed both to rent and to sell. There may not be any comment that the property is a lease-option, and maybe it didn't even occur to the seller. But a property that a seller is willing to lease, but is also willing to sell is a perfect candidate for a lease-option.

--Search for homes that are listed for rent, but were previously listed for sale. It's likely that the owner was trying to sell the house, but wasn't able to. Now he/she is willing to rent it. That's another perfect candidate for a lease-option.

--Search for homes that are listed for sale, but were previously listed for rent. In today's market, there will be fewer of them, but it happens.

--Search for homes with expired listings. The owners wanted to sell, but weren't able to. Many will consider renting the property, especially if it's vacant.

--Search for homes listed for sale that are vacant. The owners are hurting. They might appreciate the cash flow they'd receive from leasing the property.

--Search for homes listed for rent that are vacant. Again, the owners are hurting. And most owners of single family homes are "reluctant landlords." That wasn't their long-term strategy. Especially if they're bleeding, they may just want to get the property off their hands.

***Not Using a Realtor***

I'm not advising doing it yourself, but you certainly can. However, here are a few other ways to do it.

--Advertise on sites like CraigsList for a lease-option. Advertise under both the rental and purchase areas.

--Go through the papers and look for properties that owners are trying to rent out. A lot of them won't be listed in the MLS. Approach them and explain that you'd like to rent their property for awhile, then have the option to purchase it.

--Look for FSBOs. Same basic pitch to them. You'd like to buy their house, but would like to rent it first.

--Choose a neighborhood you like. Knock on doors. Ask, "Do you know anyone in this neighborhood who might be interested in selling their home?" Often, you'll turn up people before the home is listed. Again, you explain you're interested in buying, just renting awhile first.

--Put cards up in your local supermarket.

--Attend a meeting of your local real estate investors club. It may cost $10 or $15, or maybe nothing. There's usually a time near the beginning of the meeting when investors can stand up and offer or solicit deals. You can stand up, too, and announce that you're looking for a rent-to-own. Specify what you're looking for (number of bedrooms, baths), geographic location, type of property (townhouse, single family home, etc.), maximum amount you're willing to spend on rent and purchase, and anything else that's relevant. Print up some one-page factsheets with details. Make sure you put all your contact information on there. Go to http://www.creonline.com for a list of investment clubs.

Hope that helps
0 votes
Zaritza Sanc…, , Tucker, GA
Tue Jul 15, 2008
In addition to contact a REALTOR, you can also search online. I searched for "Rental Properties", and several sites came up. Check your local news stands for rental magazines and cragslist.com
0 votes
Ken Herrera…, Agent, Las Vegas, NV
Tue Jul 15, 2008
Hello Heather,

You have many options in your search for rent to own homes. You can contact a local Realtor to help you begin your search. Many rent to own properties are offered in local newspapers and online in sites such as Craigslist.com.

Good Luck
Web Reference:  http://www.C21Infinity.com
0 votes
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