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

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

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Don Tepper, Agent, Burke, VA
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:…

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:

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.
2 votes
Not sure how true this is however, I have read rent to own ads that say part of your monthly rent will be applied towards the down payment of the home if/when you decide to buy. Is this true? I see how a rent to own benefits the investor but how does it benefit the buyer/tenet?
Flag Tue Jul 18, 2017
You say, "investors love rent-to-own situations" but who is the investor in your scenario? You are not, since you are technically not investing any money but just brokering a deal between the home-owner and a potential tenant/buyer. Can you explain? Is it common for real estate agents to take on an investor role, buy a property with hard cash, and then turn around and offer a lease option to their clients, who are not competitive buyers?
Flag Thu May 19, 2016
Larry Lichtm…, Agent, Bala Cynwyd, PA
Sat May 29, 2010
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
I want to rent to own in Palm Bay, Florida
Flag Wed Jul 5, 2017
As the user @Zeus8p I'm looking for the same thing... an investor that can buy the house and I'll fix the house, and it is ready to pass inspection and qualify for a traditional mortgage, I would buy the house from the investor... Basically I'm after an investor that does rent to own or a long term (2 or 3 years) finance with interest only.
Flag Sat Oct 15, 2016
We are wanting someone to buy a house with hard cash that we can then buy the house back from after we make necessary repairs so that the home wll qualify for a traditional loan. The home is currently in foreclosure and for sale, but the previous owners thrashed the home before leaving.
Flag Sun Feb 28, 2016
Simon Reff, Home Buyer, Philadelphia, PA
Sun May 31, 2015
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
Jesse B. Luc…, Both Buyer And Seller, Las Vegas, NV
Tue Jul 23, 2013
Rent to own homes. All areas, all prices ranges. Low Down, huge rent credits, price protection
0 votes
Your statement says all area but your website does not include WA State. Do you have affiliates?
Flag Mon Mar 28, 2016
jawi1560, Home Buyer, 48224
Sat Sep 1, 2012
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
Hannah Angert, Agent, PHILADELPHIA, PA
Sat May 29, 2010
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
Dp2, , Virginia
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,,, 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
Hannah Angert, Agent, PHILADELPHIA, PA
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
Timothy Garr…, Agent, Philadelphia, PA
Fri May 28, 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 (

0 votes
Temi Akojie, Agent, Upper Marlboro, MD
Fri May 28, 2010

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.
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0 votes
Hannah Angert, Agent, PHILADELPHIA, PA
Fri May 28, 2010
Why would an investor rent to own? An investor wants to buy, not rent.
0 votes
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