HAS ANYBODY TRIED RENT-TO-OWN PROGRAMS?

[cobando]

Hi,

The RTO program looks profitable than if you just buy an investment property and rent it out---considering my financial situation: I only have $5,000 saved up for downpayment (so the normal investment property route is not feasible yet---and CMHC does not want to insure me as I`m a casual).

I really want to start investing now instead of my savings not working for me.

Cost of membership (one-time): $600
monthly dues: $69 (you can cancel anytime)


How it works:

They have their list of tenants (normally with bad credit) wanting to buy homes. This is where I come in, along with other investors. You sell the house to the tenant after 2 years at a higher fixed price. If tenants decide NOT to buy at the end of the contract, I`ll pay the company $2,500 and they will get new RTO tenants in.

*downpayments are about 5-10% of purchase price
*rents are above market
*you charge $200-400 more on top of the rent
*you pay Homevestors 4% commission everytime you sell your RTO investment to your tenants
*...same RTO rules apply etc...

You still get leverage: positive monthly cashflow, use tenant`s downpayment to get another RTO property, property appreciation at the end of contract

My Question:

1) How often do opportunities go by since we kind of rely on a list of tenants who have already found a house and have been qualified by Homevestors---cashflowing and everything.

2) The only thing that stops me is I pay the same membership fee and monthly dues but I can only buy properties for up to $179,000. I know that most people that are on RTOs are ones who are tired of renting and would like to move in to bigger houses, which means houses that cost $230,000+

3) And oh---is this a better option than the regular property investment route since you see the numbers ahead of time and you don`t have to worry about advertising and there`s not much managing involved?

Anybody who`s heard of Bob Mangat`s Homevestor Rent to Own program? Please let me know any of your experiences and any possible downside with this investment.

Thanks a lot!

-C

 

[hazed]

I have listened to Bob Manget`s teleseminars and had a personal call with him last week. First off, I was told the Income for Life program was $99 if I signed up now and $34.95/month - not sure if we`re talking about the same program then. Anyway, in discussing RTO with him and looking at one of the deals, I don`t think he properly portrays the potential returns. Lots of costs are not taken into consideration so he boasts huge returns which are not realistic. He also conveyed to me that he is in need of qualified tenant/buyers himself and offered me a fee if I could provide him with tenant/buyers from my database. I haven`t heard too much back from him yet - this happened only a week ago. The fees to him seem too high for me and I didn`t feel he was being straight-forward in answering our questions. I too would be interested if anyone else has had experiences with HomeVestors.

 

[thebunny]

I would never ever use them.

Bob is a theif he stole our 5K and than asked fro another 2500 to finish the deal. So in the end we spend 7500.00 and lost every penny.

They rip people off. We were pushed into the rto program when we got the mortgage in our name they realky didn`t like that.

Please be very aware if you deal with them.

 

[GaryMcGowan]

There are many investors here on this board that are very familiar with Rent to Owns and how well the returns are for investors. We have a handful ourselves and use investors to provide the capital. Our approach is slightly different but the end result is the same. The investment needs to be WIN-WIN for ALL parties involved. One advantage to our investments is that we do not require our investors to qualify for any mortgages.

 

[markl]

C,

fees are fees you will have to pay something to learn a system so you can advertise and learn to filter prospects. You can start working on tenants right away.

My concern is why are you paying 4% commission on the exit? This is a private sale between you and the tenant. The Real Estate agent is making their commission when you purchase the property why would you pay them on the exit.

Where are you located? I am putting together a home learning course for my program. It should be available in a couple of weeks.

Regards,

 

[Pat]

QUOTE (markl @ Aug 24 2009, 04:35 AM) C,

fees are fees you will have to pay something to learn a system so you can advertise and learn to filter prospects. You can start working on tenants right away.

My concern is why are you paying 4% commission on the exit? This is a private sale between you and the tenant. The Real Estate agent is making their commission when you purchase the property why would you pay them on the exit.

Where are you located? I am putting together a home learning course for my program. It should be available in a couple of weeks.

Regards,
Hi Mark. Can you please send me information on your course?

My email is [email protected]

 

[tonypeters]

C,

I have been operating a successful "Lease To Own" program for almost seven years. If you would like to check out our programs you can visit my website @ Hi,

The RTO program looks profitable than if you just buy an investment property and rent it out---considering my financial situation: I only have $5,000 saved up for downpayment (so the normal investment property route is not feasible yet---and CMHC does not want to insure me as I`m a casual).

I really want to start investing now instead of my savings not working for me.

Cost of membership (one-time): $600
monthly dues: $69 (you can cancel anytime)


How it works:

They have their list of tenants (normally with bad credit) wanting to buy homes. This is where I come in, along with other investors. You sell the house to the tenant after 2 years at a higher fixed price. If tenants decide NOT to buy at the end of the contract, I`ll pay the company $2,500 and they will get new RTO tenants in.

*downpayments are about 5-10% of purchase price
*rents are above market
*you charge $200-400 more on top of the rent
*you pay Homevestors 4% commission everytime you sell your RTO investment to your tenants
*...same RTO rules apply etc...

You still get leverage: positive monthly cashflow, use tenant`s downpayment to get another RTO property, property appreciation at the end of contract

My Question:

1) How often do opportunities go by since we kind of rely on a list of tenants who have already found a house and have been qualified by Homevestors---cashflowing and everything.

2) The only thing that stops me is I pay the same membership fee and monthly dues but I can only buy properties for up to $179,000. I know that most people that are on RTOs are ones who are tired of renting and would like to move in to bigger houses, which means houses that cost $230,000+

3) And oh---is this a better option than the regular property investment route since you see the numbers ahead of time and you don`t have to worry about advertising and there`s not much managing involved?

Anybody who`s heard of Bob Mangat`s Homevestor Rent to Own program? Please let me know any of your experiences and any possible downside with this investment.

Thanks a lot!

-C

 

[Cargren]

Hello,

We looked into Bob`s program when we started out, and while it looked good we decided against it. Largely because they want you to sign an exclusive Realtor`s contract and we were not willing to do that.

I believe they charge a tenant/buyer placement fee as well, which is perfectly acceptable for finding a tenant for you as this is the hardest part of this whole strategy, but I didn`t like the thought of paying the membership fees.

We`re based in Surrey/Langley so if you`d like to meet up and discuss/network let me know.

Rob

 

[tonypeters]

I am sorry to hear you had such a bad experience! However, I am not surprised as I hear and I read about these types of stories all the time!This is one of the reasons why I elected to place a LOT of focus on establishing "credibility" with our own (LTO) program when we first started, as I did NOT want to be painted with the "same brush" as everybody else.

The "Rent To Own" and "Lease To Own" real estate investing strategies can be extremely lucrative and very rewarding for the real estate investor, but unfortunately, creating success for the "Tenant/Buyer" is not always factored into the equation. As a result, many Tenant/Buyers (including you) have been abused!

Now with that said, I do not believe that it is always intentional, as a lack of education definitely plays a HUGE role here! This is why I always say; "this area of creative real estate investing is NOT quite as simple as it may appear". There are MANY things that need to be taken into consideration when venturing down this path, and creating a Win, Win for ALL stakeholders should most certainly be at the TOP of the list!

Thanks for your contribution to this thread!




QUOTE (thebunny @ Aug 23 2009, 09:30 AM) I would never ever use them.

Bob is a theif he stole our 5K and than asked fro another 2500 to finish the deal. So in the end we spend 7500.00 and lost every penny.

They rip people off. We were pushed into the rto program when we got the mortgage in our name they realky didn`t like that.

Please be very aware if you deal with them.