Posted by Gil on July 26, 2002 at 09:41:56:
Classified Ads, and signs mainly. 
Gil
Rent to Own vs. Wrap Mortgage or Seller finance. - Posted by Robert(NC)
Posted by Robert(NC) on July 25, 2002 at 19:26:58:
Has anyone done a rent to own deal ?
I as talking with a realtor I use here in NC, and he told me that technically Wrap Mortgages are illegal in NC.
And since I have the mortgage on the rental house, he suggested I might be able to do a Rent to Own deal with the current tenant.
The current tenant is self employed, not great credit, but does pay his rent on time and takes great care of the house. He has asked if I could help find financing for him. (he does have a family, wife stays home with kids).
Realtor suggested a 5 year lease, the tenant does ALL maintence. We give a 200 a month rent credit toward the purchase of the house IF the tenant buys the house they are in. If the do NOT buy the house they are in (I only have this one rental house ) and they leave, then they don’t get a refund of ‘rent credit’ …
I was thinking if I could do this, then I could refinance, pull my equity out and go find another property.
any thoughts ?
Robert (NC)
My 2 cents - Posted by D
Posted by D on July 26, 2002 at 11:24:57:
In my state, the title company in not allowed to prepare a wrap around contract, however, my attorney writes `em up for about $210 and sends them to the title company as part of my sale. Obviously, you must be able to reassign the underlying. Do a 15 minute phone consultation with a real estate lawyer and get the scoop for your state. Just my 2 cents, D
Re: Rent to Own Always - Posted by Gil
Posted by Gil on July 25, 2002 at 19:55:27:
Hi Robert,
You are a wise man. This is exactly what I have found to be extremely profitable. Purchasing cash for properties at 50/cents dollar then refi for 75-80% of appraised value. Then Lease optioning it out w/ positive 200-300 cashflow.
As far as lease option, what we do is have a regular rental agreement, then we have an additional option agreement. Reason we do two separate contracts is, I don’t want it to be construed as a sale. In the option I put in verbage that states that if they don’t do all maintenance, then they lose the option money. Simple.
You can’t legally have a tenant be forced to do the fixes etc… That is what is illegal. As far as a ‘wrap’ is illegal, I would consider your source.
Realtors in my investment area tell me that ‘flips’ are illegal because I am not a realtor. Ok, let them believe that and I will go make more then they make in a couple months off one deal. Poor saps.
Best Regards,
Gil
Re: Rent to Own Always - Posted by Maria
Posted by Maria on July 26, 2002 at 09:03:07:
Where are you getting properties at 50c on the dollar? That’s the part I’m having the most trouble with…any advice would be appreciated!