QUOTE (tninvestor @ Mar 16 2010, 08:45 PM) I just wonder does the RTO program beneficial to owner or tenant? 2yrs or 5yrs term? short or long term?
Well I am just trying to get started in this business, but from what I have read and learned so far if you structure the deal correctly it is a win for everyone in the end. Yes the investor makes money off the tenant-buyer, but the tenant-buyer gets to buy a house they may not have otherwise been able to purchase. As for the terms it seems best to structure it based on what the needs of the TB, if they need 2 years to be able to qualify for a mortgage on their own, then do a 2 year term, if they need 5 then do 5. I think in the grand scheme of things for real estate, RTO is a short term side of the business since the terms rarely exceed 5 years, however as others have pointed out to me, you could use RTO as an exit strategy on a current rental property.
Like I said, I am just starting and don`t have any investment properties yet but from what I have been reading and learning this is how I have begun to see it.
Hope this helps