In this team training session led by Chris Prefontaine, the group walks through a step‑by‑step system for screening, qualifying, and converting rent‑to‑own (lease‑option) buyers. The core tool is the “Next Step” form, treated as an application that is sent after a viewing is scheduled. The conversation script starts with a website introduction, a video overview, and a request for the prospect’s email before giving viewing instructions. Qualification hinges on a strict 3× monthly‑payment rule (the buyer’s income must be at least three times the total monthly payment) and a down‑payment range of 3‑10% of the purchase price. The team discusses handling self‑employed or cash‑paying buyers, probing deeper on income, and encouraging incremental down‑payment commitments (e.g., $15k now, $15k every three months). They stress using the buyer module/QLS to log calls, viewings, and Next Step forms, and they review real‑world metrics (calls, viewings, forms submitted) from recent properties. The session also covers the use of the company website (smartrealestatecoach.com/getgoing) and a simple animated video from REI Black Book to educate prospects. Finally, they outline when to introduce owner‑financing options (once a buyer reaches a substantial down‑payment threshold). The tone is conversational, instructional, and supportive, with a focus on creating a repeatable, data‑driven process.
Chapters
We want to see at least 3 times the monthly payment because I want to make it a slam dunk, as much of a slam dunk as possible.
So what's a buyer and buyer-like scenario? Why did—
I don't know the source of the buyer, but the buyer, his scenario is he's self-employed, has a bunch of different businesses.
You can use the tail right in front of you.
Yep. Has a bunch of different businesses. I made notes on the Next Step form, as I always do.
Does everybody know while he's looking at that what a Next Step form is? Just so we don't get ahead of you.
Next Step form is 18010 San Carlos Boulevard.
Nick, we have a lot of new people, so explain Next Step form, please.
All right. For lack of a better term, Next Step form is an application. So we're going to every property that we have. First, the initial call is they're going to say, hi, you called. Now I'll use this address about our home, our condo at San Carlos Boulevard that is available through our rent-to-own program. And rent-to-own program is not a great fit for everyone. So first, before we get you in there for a viewing, wanted to make sure that you get a chance to look at our website to see our website. Have you seen that yet? The answer usually is no. So you're going to say, great, do you have a pen? I can give that to you. And that kind of allows you to take control of the conversation. So then once they get a pen and they're ready, you give them your website. And the way that we have it set up is, all right, great. So once you're there, Have a look at the video that we have right on the homepage that goes over how our rent-to-own program works. And if it is something that you're still looking to do, just give me a call back and we'll get you in there for a viewing.
Okay?
I do that about 10 times per week is all he does.
I—
the motions and everything. Seriously, one of you know this walking by my office. So then, uh, that's why they ask more. That's why they So yeah, you gotta do something to keep yourself entertained. So then say you get like 10 calls. So not all 10 people are going to call you back. So maybe 3 or 4 of those out of 10 call back and say, yeah, it's definitely something I'm interested in. You know, I know I'm buying a home and it requires a down payment, that kind of thing. And you say, all right, great. Well, you arrange their viewing, get them in there for a viewing, and then you say, all right, what's the best— before I give you the viewing instructions, pretend you're the buyer, Philip. Before I give you the viewing instructions, what's the best email for you? And that way I can send you over some next step forms. And if you're interested in taking the next step on the home, After you see it, all you'll have to do is fill those out and get those back to me. So that just in your head, that's how you— that's how you get their email. I don't give them the viewing instructions before I get their email because then I don't know, it just throws my process off. So—
Well, it's a little tennis too, though. You want to make sure they're acting. That's why you set up the way you did.
Yeah.
You guys, the next step for them is in the buyer mod, just so in QLS.
So next step form is basically an application. So as soon as we set up their viewing, as soon as we set that up, we send the forms out to them and you say, oh great, after you view it, if it is something you're looking to take the next step on, all you have to do is fill the forms out and get them back to me. Typically I repeat on that call and I just did a twice today, between today and yesterday. I'm repeating the phrase on that call, hey, any last-minute questions before you send the forms back or issues viewing the property? I'm going to include my cell phone number in the email, so feel free to reach out to me at that number. And then that just— that's not— that's not so you want to take their call when they're there at the house, because usually 90 or 95% of the time They figure it out. They're like, oh, the key's not exactly what you said, but chances are they're going to figure it out. It just allows— it just allows them to kind of open that line of communication again and for you to have another conversation with them. Because even at that point, they're still thinking, oh, well, they probably don't want to work with me because I have this thing on my credit, or I went through a divorce, or I have a foreclosure, so they don't want to work with me. So this allows them to phone that, that lifeline.
Nick, how many next step forms did Jeff get, do you recall, or was that the only one?
Because we just got more aggressive with the price. This is— I don't know.
I don't know.
I don't know. I'm telling you, a few, probably.
Okay.
Annette, you had a recent sold. How many next step forms did Jeff get?
11.
Judy, you had a recent sold. How many Next Step forms on that property?
I want to say it was like 4.
Okay.
Just giving you guys an idea. How about total calls, roughly, Judy and Annette, on your—
on your—
how many buyer inquiries? Like crazy or not?
Oh, insane. Like hundreds. But a lot— but a lot of them wanted to rent. So once you weed those out, And then I think, Nick, I said like I had probably 12, 13 viewings.
I have my notes say for that property, Judy, that you had 16 viewings, 3 next step forms. And out of that, we found— we were able— yeah, we were able to find our one buyer. Well, because I had to look all these up recently.
Yeah.
So you're never without activity. I guess I want you to know the number. But the second reason I brought that up is Please, please, please, please, please follow the system in the buyer mod and what Nick set up, or you're going to drive yourself crazy. There's no reason to get caught up with all these buyers. As Judy just said, they're not all buyers. Just follow the system. Let the system weed them out. Well, let the cream rise, I should say. More important.
Okay.
All right. What are the buyer situation, Nick? Do you know it?
He's self-employed. Yeah, he has a bunch of different businesses. Temp business and catering business. And yeah, that's as far as I got with them.
And the next step, Kate, is— so the next, the next, the next step one came back with what kind of numbers? Because sometimes they don't always put what they can do, right?
Well, I think, yeah, I think this is good. So 3 to 10% for this house is $9,000 to $30,000. However, he only wrote down how much you have a down payment for today, $5,000. No plan, nothing like that.
Originally.
So after a conversation with him, he told me about his situation with his business. His business, his businesses. He has a salary for himself and he only listed $4,500 a month, which Doesn't— he wouldn't qualify income-wise based on that for this house. What we're always looking to make sure is that they make at least 3 times what the total monthly payment is going to be. So the total monthly payment here is $1,801, payments $1,500. We actually just reduced that and he's getting activity because we did that. And then tax of $301 and change. So after you multiply that by 3, that's $5,404. So he only listed $4,500. However, it's important to call every set of next step ones because after you're on the phone with them, you never know what the full story is. He said he, he can pay himself whatever he needs to. Like his business, his businesses do very well.
So you get him up and down.
Yeah.
Was that good? We're going to see tomorrow.
For down payment?
Yeah.
Oh yeah. And it wasn't, it wasn't anything Jeff or I said. This is another point. It wasn't anything Jeff or I said to this guy to get his down payment up. We just asked the question again.
Yeah.
Hey, if you were to buy a home hypothetically, what do you think you have set aside for a down payment? He said, well, you know, I listed $5,000. So, well, okay. Well, as you've seen the video, it's anywhere from 3 to 10%. What that means for this house is roughly $9,000 all the way up to roughly $30,000. So that's why I asked that question again. We have a lot of interest in this home, as we do all of our red tone homes. So the higher you get your down payment, the better your chances are of being accepted. So that's why while we're live, I just wanted to ask you that conversation again. He said, okay, I can do $15,000. He said, would that work? And I said, okay, well, yeah, that fits between the 3 to 10%. So I—
yeah.
So I said, all right, well, over the course of the next, I don't know, call it year, where do you see yourself being able to commit more? Towards the down payment, he goes, "Ah, I don't know. I could do every three months." I said, "Okay, what would you be comfortable with committing every three months towards your down payment?" He goes, "Um, could do another fifteen thousand." He picked that up.
It's all on your checklist, wouldn't it?
I was like, "All right, that's fine." Um. Now, someone that's doing a down payment plan like that, or like such a substantial amount every 3 months, you say, all right, well, to give you some breathing room, we're probably going to cut that around the 18 or 19 month mark. Because what we find is the majority of our rent-to-own deals are going like 24 months because we're able to find that most of our buyers are able to qualify inside of 24 months to become mortgage ready. So even doing that, his down payment on a $299,000 house, $299,900 house, is $105,000 for a down payment. Now, I think Jeff told me he has this property for 7 or 9 years. Well, yeah, 84 months. So, so he started asking me all these questions. Jeff started asking me all these questions about, well, we could probably owner finance a buyer and do all this and then you would never have to take a loan. I'm like, Yeah, that's, that's correct what you're saying. However, I wouldn't like to even enter into that conversation until we're at the very end of the buyer's meeting. Just say, hey, based on what you gave us for a down payment plan, once you get to $100,000 for your down payment, we could probably consider owner financing you and you never have to go through that. May I help you?
Um, hello. Yeah, I'm through.
I'm sorry.
You?
Yes.
Uh, could I have a burger and fries please? No ketchup.
Oh, Nick, you missed it.
No, no, I thought you had.
We were in the middle of an order of burger and fries. Number 2, actually.
And fingers.
Number 2. I asked for some. She didn't get me any.
So you want that?
Let's take a pause, see if you have any questions on the buyer side.
That helped.
Good question, Chris. When you, when you first started, is my understanding of rent-to-own was that people would pay X amount for rent and X amount for the purchase of the property at that time, you know, so like say $2,000 and then $2,000 for the purchase all the way through. Was that originally how rent-to-own started?
I don't know when it started. It started way before me, but how I did it was always just a regular rental amount. If they want to add on top of that, call it a buyer assistance program where they can put down extra money and we'll also credit them a piece of that towards the price. But that's a different conversation. But we never built in Huge amounts. And last, in Nick's checklist, he says to you, Dan, as a buyer, what do you think you could see yourself coming up with extra monthly? You know, they come up with some numbers. We've heard $500, $600. It's not like a standard thing.
And I heard, I heard somewhere it says, oh, well, we got tax returns. You're getting any tax returns?
You have to only buy that.
Yeah. For Christmas bonuses, tax returns and things like that out of his checklist.
And when it comes to, when it comes to someone that wants to commit more towards their down payment monthly. I want to first make sure— we want to first make sure that they make at least 3 times a monthly payment. If it's in excess of that huge— which, by the way, that's not just a made-up number. That means if they do make more than 3 times monthly, 3 times a monthly payment, that means their debt-to-income ratio, their housing payment to their income ratio is going to be 33% or lower. They are giving— lenders are giving loans for, I don't know, even 40% to up to 50% housing payment to monthly income as long as everything else checks out and they're a perfect buyer. I just— I hate to I'm going to take that risk with someone. That's why I always say that, that we want to see at least 3 times the monthly payment because I want to make it a slam dunk, as much a slam dunk as possible to our lenders, to when it comes time for this person to get their own loan. And just, just that it's going to be such a slam dunk.
That'll be when you minimize it.
Yeah.
Yeah, exactly. Exactly. Our standards are even higher than someone's.
When that guy— when that guy told you $4,500 a month, a lot of people are afraid to— a lot of these people make cash money and they're afraid to give you numbers. This guy probably makes more money. Yeah, because he's a— of course he's a painter and he probably gets a lot of cash.
A lot of our buyers. A lot of our buyers.
Yeah.
Hold on, Mick. Sandy had a question.
Zoom.
I just don't want to go past it.
Tom had a question.
Oh. Sorry. Let's go Zoom and then come back.
Yep. This question's from Norm. Um, Nick, what is the website that you send people to, please? What's the URL for the rent-to-own info?
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 would be sending it to your own website. That's why I stopped short and didn't say a website, because we— I send people to our website, but you would be sending them to your website.
Yeah.
You have your own site with the done-for-you videos and whatnot through REI Black Book, correct?
Yep.
They get it all. REI Black Book website is part of the video.
Who made the video? That's your video? Someone—
What's your video?
That's cartoons. Y'all can use it.
Cartoon made off of— based off of our video. And our video is just me copying him years ago. So I'm looking at just a simple system, simple video to drive people towards.
Just like when we talked about the seller side, we're driving to the email with some explanations because we're educating people. The buyers don't know that there's a rent-to-own program either, just like the sellers don't know that there's creative financing options. So just educating people through the process.
