Full-time Income, Part-time Work!
You know the saying, One bad apple spoils the bunch? Well that one (or multiple) bad apple has left a bitter taste in the mouths of landlords and tenants when it comes to rent-to-own strategies. However, this tool, used by some to scam people out of money and leave them with defaulting properties, is valuable in your arsenal of investment tools.
In fact, the rent-to-own option is actually a win-win. For the investor, you stand to make a large profit off of the property (not the mention the pride that comes with helping others).
For the tenant, they get the house they never thought they could afford.
The simple 3-step process of the tenant-first strategy:
- Find and qualify a tenant looking to one day be a homeowner.
- Get the tenant to find the house of their dreams.
- Buy that house and rent it to your tenant with the option to one day own the home.
To give some traction to your first step, according to a survey by Altus Group Canada, 80 percent of renters under the age of 50 desired home ownership. Why would they be renting then? It always comes down to finances; they either are saving for a down payment or are sure or able to qualify for a mortgage.
Altus estimates that there were approximately 300,000 first-time buyers per year between the years of 2009 and 2013. That means that of the approximate 2.5 million renters in Canada, there will be approximately 1.7 million tenants who still have the desire of homeownership.
Thats a fairly large pool for you to begin your tenant search in!
For more strategies on expanding your real estate investment portfolio, get a free copy of our REIN Report Magazine
{{cta(‘1be66a74-7dfc-4e67-a1de-5a41539de3f0’)}}
If you are interested in learning more about Rent To Own investing check out the Canadian success guide!
All Access
