Rent-to-Own investing as Intentional Iteration

[EvanOkanagan]

Hi guys,

I'm a huge fan of the fastlane philosophy and would like to branch out and start something online soon. I have a question about a particular fastlane strategy that I'm just getting into.

I'm a Realtor at the moment and also make about $2,000 passive income (net) through my current investments. My recent favourite investment is in Rent-to-Own properties, or lease options. They fulfill all fastlane commandments except for Scale.

NEED:

There are many people looking for rent-to-own properties these days. Especially with the increased restrictions on getting a mortgage where I live, people are searching for other alternatives into home ownership. I also manage all of our leads at the brokerage I work for, so I talk to 10-20 rent-to-own applicants per day.

ENTRY:

We have a lot more renter applicants than investors. I think because of the horror stories or lack of knowledge of rent-to-own some are afraid to get into it.

CONTROL:

Control is assumed throughout the rent-to-own term and everything is in the investors name until the house is purchased by the renter down the road.

TIME:

The tenant takes care of everything: repairs, utilities, maintenance etc. The only thing the investor deals with is getting the initial mortgage, the closing, and cashing and dealing with bounced cheques. Usually these deals go for 3 years, so the start and end of the 3 years is when a bit more work is put into it.

INCOME POTENTIAL:

I joint-venture in the rent-to-own properties since my debt load is high with 2 properties owned and I can't get any more mortgages. I find an income partner, and my job is usually finding the deal and splitting the initial cash required to purchase the home.

The average return for investors on these properties is about 30-40% per year. In some cases it can be even greater. There is a cashflow monthly (usually between 250-500) and a large cashout at the end of the term (in the property I'm invested in now I'll get about $30,000).

Is this fastlane?

Do you think it is a good use of my time to keep investing in these properties, growing my cashflow, and seeing the cashout at the end of the 3 years, or would this be better to focus on as an investment aside from a fastlane (online) business system?

Your thoughts would be much appreciated!

 

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[JPBB]

Og zua'si op e nivsuqumovep esie, dep zua iyidavi vji teni qmep xovj sipv-vu-uxp dupfut us meshi juatoph dunqmiyit? ...katv ep ofie gus tdemoph ov.

Sipv-vu-uxp gus dunnisdoem tquvt op tvsoq dipvist us uggodi qeslt?

 

[H. Palmer]

Ov siemmz fiqipft up jux zua figopi "getvmepi".

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[Steve37]

Zua'si tonqmogzoph vji mieti uqvoup heni raovi e cov, cav zit ov dep ci qsugovecmi. Getvmepi? O haitt, cav vu fu tu zua xuamf piif vu seoti e capdj ug nupiz sevjis vjep fiemoph xovj tnemm voni opwitvust hivvoph sitofipvoem nusvhehit jisi epf vjisi. Og zua'si huoph vjsuahj vji vsuacmi ug seotoph vjev lopf ug nupiz vjip zua'si qsivvz nadj uav ug vji tnemm voni sitofipvoem heni.

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Vjisi ot e huuf sietup ceplt xup'v veli sotlt up disveop qiuqmi.

 

[DeletedUser2]

Siem Itvevi, cz pevasi atit nusi Nehpovafi, vjep Tdemi

jewoph fupi e pancis ug sipv vu uxp, edraotovoup ot emxezt vji vsodlz qesv.

cav O guapf nekus nivsu esiet, zua dep hiv 2-4 juatit qis nupvj, miewoph opvedv vji umf nusvhehi, epf puv jewoph vu hiv pix nusvhehit gus iedj.

upi zies op femmet, (ecuav 2004 O vjopl) O fof ecuav 12 us tu Sipv vu uxp fiemt, vjev qsucecmz jemg deni gsun nz cescis. tji xuamf vimm ni ug tuniupi op vsuacmi, opvsufadi ni, hiv ni vu caz vji juati, (movvmi us pu nupiz fuxp) veli ov uwis, epf sipv vu uxp ov vu upi ug jis gsoipft us tuniupi ugg nz cazis motv.

emm op emm ov dsievif e podi movvmi 3-5L e nupvj opduni, xovj wisz movvmi uav ug nz qudliv.

Epf O fof vjev xjomi puv iwip vszoph. O upmz katv miv qiuqmi lpux O xet muuloph gus juatit vu caz. vjevt ov.

tdemoph op siem itvevi ot nusi ecuav eqesvnipv dunqmiyit.

huuf kuc up hivvoph opvu vji heni.

pux ovt nusi ecuav duptotvipdz.

uwis 5 zst ev 12 juatit e zies vjevt ipuahj juatit vu jov getvmepi....

B