Chris Prefontaine explains how to handle rent-to-own deals when buyers can't secure financing near the end of their lease-option term. His program sees 2-10% defaults versus 80% failure rates elsewhere, using proper structuring and pre-qualification. Options include extending the buyer's term, renegotiating with the seller, selling conventionally, or finding a new rent-to-own buyer.
Chapters
All right. Q&A Thursday. Here's a real-world question for you. What happens if my buyer doesn't perform? And this is regarding specifically the buyer in a rent-to-own getting close to the end and not being able to get financing. As I've said in so many videos, our default rate is like 2 to 10% in our program compared with 80% failure. And with most people doing this out in the marketplace, they're flat out doing it incorrectly. My son Nick has mastered this end of our business. since 2014, and he's helping associates of ours all over the country, 80+ markets right now. Back to why a buyer may not be able to complete this successfully. They lose their job, they need more time for financing for a myriad of reasons on their loan conditions, they can't get qualified for a myriad of reasons. Let's leave all that for another video, or if you decide to attend our special deal room training where we run over all kinds of scenarios in person at our office. Deal after deal after deal. Regardless, now what? What happens when, when this gets thrown at you? Because this does happen, guys. I gave you the percentage. People have real-life events, and if you're not prepared for it, you might panic. But there's no need to panic when you know exactly how to pivot. Here's how you handle it. Step 1, you already knew this was a possibility. That's why you structured the deal with time, always giving yourself that buffer between The seller's term with you and your term with the buyer, always. That's why you prequalified them, these buyers, right? That's why you didn't just throw anyone in the house. I've done that before. It's a headache. Now when it happens, you do have some options. That's the good news. You can extend the term with them. You can renegotiate with the seller. Or if the buyer exits, you can either sell conventionally or place another rent-to-own buyer if you have enough time. I say conventionally, I mean with a realtor. Or on your own for sale by owner. Not sure where to get started? Go to smartrealestatecoach.com/getgoing for free books, strategy calls, and a whole bunch more. We're going to help you get going the wicked smart way. We've been after this for over a decade doing exactly that. You can always renegotiate more time. Now here's the beauty of all this. We've had every scenario you can imagine hit us with this, and therefore we help our associates pivot when they're faced with things. This is real life. This is why it's critical Who you're connected with. And that's the big difference here. See, this business isn't just contracts. It's decisions nonstop. You don't fear the what if. You literally plan for it based on our experience. Because when you plan for it, it's just another scenario. It's not a crisis. You just go, okay, if A, then B, right? I'll see you next Thursday. I mentioned Deal Lab. So to learn more about that and how to become an apprentice, I would urge you to go to 3paydaysapprentice.com/youtube. That's 3, the number 3, paydaysapprentice.com/youtube. Stay tuned in to all the pivots.
