Rent-to-own formula

[Kyoung]

In the past, I was always leary of the rent-to-own places, mainly because I don`t know the formula that they calculate the rent and mortgage part. From a landlord`s point of view, I can see how it is beneficial and giving someone a good start if one can is always good.

Someone is taking this approach on my property but I don`t know how to present it. Do you know where/how I could educate myself about this? How do I build my own formula? Who can help? my mortgage broker?

Thank you
Kim

 

[JoeRagona]

QUOTE (Kyoung @ Sep 10 2008, 11:43 PM) In the past, I was always leary of the rent-to-own places, mainly because I don`t know the formula that they calculate the rent and mortgage part. From a landlord`s point of view, I can see how it is beneficial and giving someone a good start if one can is always good.

Someone is taking this approach on my property but I don`t know how to present it. Do you know where/how I could educate myself about this? How do I build my own formula? Who can help? my mortgage broker?

Thank you
Kim

Kim,

I have asked for help on this approach as well from a few key members on the board. www.homeownersoon.com is a good source with a formula that you can use as a start to see if it works for you.

I have successfully pulled together a RTO and if you approach it the right way, everyone comes out a winner.

If I can help, let me know or look up lease to own in the search for many discussions on it.

Joey

 

[LeighF]

QUOTE (JDRInvestments @ Sep 10 2008, 10:12 PM) Kim,

I have asked for help on this approach as well from a few key members on the board. www.homeownersoon.com is a good source with a formula that you can use as a start to see if it works for you.

I have successfully pulled together a RTO and if you approach it the right way, everyone comes out a winner.

If I can help, let me know or look up lease to own in the search for many discussions on it.

Joey


What formula is used to determine the set "purchase" price for the potential rent to own candidate?

 

[kboughen]

QUOTE (Kyoung @ Sep 10 2008, 11:43 PM) How do I build my own formula? Who can help? my mortgage broker?

Hi Kim,
If you need assistance positioning the financing for either you or the RTO client, feel free to contact me.

 

[JoeRagona]

QUOTE (LeighF @ Sep 11 2008, 07:52 AM) What formula is used to determine the set "purchase" price for the potential rent to own candidate?

If you go to the site I suggested, there is a formula there that will give you the suggested `purchase price` based on the price you paid for the property.

Kevin can help you as well, he certainly guided me in the right direction. You SHOULD have a mortgage broker on your team that can evaluate your potential client so you both know what needs to be done to `sell` the property later on down the road.