Stop Managing Tenants — Do This Instead ($61K Deal)

Chris Prefontaine shows landlords how rent-to-own deals generate three separate paydays: an upfront down payment, monthly cash flow, and a final equity payout. A Nebraska landlord made $61,200 total profit on a $263k property in 24 months, far more than a traditional sale or rental would yield.
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Active real estate investors, tired landlords, if you're sick of dealing with tenants, toilets, trash, needing to manage reserves, CapEx, vacancies, or babysitting property managers, don't give up on real estate. I've actually heard this from too many people that it's not the right time to keep buying real estate because of those. No, the idea is you need to change your strategy. Now we have community members in droves that are real estate investors currently right now, and they're looking for a new exit strategy to go ahead and sell off their current portfolio. Now instead of just going to sell traditionally and getting hit with large amounts of capital gains, and honestly to go ahead and kill that golden goose that's been constantly producing income for you, on a monthly basis for years? No, the actual exit strategy can and should be selling on rent-to-own, which is allowing you to stop doing things the old way and start tapping into the 3 Payday System. Now this system, what we're seeing, is generating a significant amount of more profits and less headaches for these active investors. I'm actually gonna share with you a deal here in just a moment But she is just one of many community members now that are actively selling their current rentals through rent-to-own. 'Cause what this allows you to do is to start creating income today with large lump sums. It allows you to continue to get that passive income so you don't have to shut off the tap. It also allows you to have a clear exit in the future at an elevated purchase price. And yes, we are talking about people that are actually buyers, buyers that just need time to qualify for bank loans. Buyers that are self-employed, buyers that had legitimate hiccups in their credit or relocated or has gone through some type of family event like a death or divorce and it just happened to just need more time. I'm going to share with you how you can actually tap into these rent-to-own transactions by using the current properties that you already have so you're not getting hit with large amounts of capital gains by selling today or to really shut off your cash flow. Cheyenne of Nebraska is only one of many. We had Rick out of Florida who actually sold one of his properties long distance that's in Oklahoma because he was sick of dealing with the property managers and able to get an additional $45,000 to $55,000 in extra profits by simply exiting this way. Or Rich out of Pennsylvania who has been an active investor for so many years, fix and flip, Actually made an additional $90,000 by exiting this way. And Cheyenne, who is out of Nebraska, is creating an additional $61,000. Let me walk you through exactly what this looks like because you currently have a piece of real estate. Now, your current piece of real estate is just coming with some challenges, right? It's not that you have a financial challenge, you have a real estate problem, right? 'Cause right now, this particular property is very likely producing some sort of cash flow. So we're actually gonna keep that in play, right? It's also, you're getting tax benefits like depreciation. So we actually are gonna be able to keep that in play as well. And more than likely, you're getting some sort of appreciation. Now, I understand, That in some markets that is not actually true right now. So now this is your opportunity. Now you're actually going to be able to capitalize on the appreciation as well. And because we're selling this on rent-to-own, you're actually going to be able to continue to keep control over this property. But instead of only collecting monthly cash flow on a monthly basis, we're actually going to speed up and have you have the ability to actually tap in to profits today that you have to wait years and years for. Because we have this property, and instead of dealing with your typical tenant— and your tenant is going to come with, uh, CapEx, right? Vacancies. With that is repairs, right? It's going to come with maintenance. It's going to come with late-night phone calls. It's going to deal with property managers and babysitting. Instead, what we're suggesting outside of this normal tenant is you actually switch to a rent-to-own buyer. Now this rent-to-own buyer is going to provide a couple amazing things for you. They're gonna give you a down payment today, which is your payday number 1, which is anywhere from 3 to 10% of an elevated purchase price. You're going to be receiving your payday too, which is your cash flow, which is known as your payday too, which is anywhere from $100 to $1,000 extra per month. More than likely, you can keep the exact same cash flow that you're getting currently on your rental. And then also, you're going to have equity at the end of the sale. Now, if you've owned it for a long time, of course, you're going to have a Ton of equity at the end, but your payday 3 is when this buyer eventually cashes you out, and we're seeing anywhere from $35,000 to $100,000 on the back end. And honestly, our community members are making anywhere from $45,000 to $350,000 on all of our current transactions. But you get to bypass all of the front end of this business, and now you just get to execute on the current deal that you have, which completely speeds up your process. And completely speeds up your opportunity to receive a significant amount of down payment, which is typically what we're seeing anywhere from three to five years at least of your current cash flow. Plus, you don't have any type of management fees, vacancies, as your buyers are acting like and are treated like a homeowner. Let me walk you through this deal that Cheyenne, one of our community members. Out in Nebraska had. She had this rental property and she was sick of dealing with tenants, toilets, and trash. This is in Wood River, Nebraska. And she ended up using our strategy because she already had this property that she purchased traditionally and was a traditional landlord before she came into our community. And now she's selling it on rent-to-own. So let's walk through this. So she bought this property. For $263,000, $63,500. We're then going to go ahead and sell this to a tenant buyer, which she already has in place, for $289,000, $89,900. So she was already able to sell this property for an elevated purchase price because the buyers are able to lock in Their price today, and all of our tenant buyers are willing and able to buy it at a premium purchase price. Well, what she was able to do at day one at signing, she received $7,700 as her original down payment. This is her payday one, and then she's receiving an additional amount of money for a total of $15,600. $1,600 as the total down payment, which is somewhere around, say, 5%. So this is the non-refundable deposit that she has in her pocket day one. And as you can see, a rental property in this type of area is probably generating maybe just a couple hundred bucks per month. So if you compare that to your traditional rental right now, it would take you a pretty significant amount of years in order to just eclipse the $15,000. So you're able to pull your profits up front Plus you're eliminating any and all additional expenses because these buyers are acting like and are treated like a homeowner. So that's her payday 1. This is what she received upfront, and that's a non-refundable deposit. Then what she's then creating is monthly cash flow. So her payday 2 is roughly $250 per month, which is probably pretty standard for that area in regards to cash flow. And we're going to go this— we sold this on a 24-month term. So we're going to go ahead and collect $250 times 24 months is going to equal $6,000 in cash flow. So she's received $15,000 plus $6,000 in cash flow. This is becoming a really awesome deal. Okay, now she was able to mark up the property difference here, and the markup is $24,000 or $26,000. So day 1, she can mark up this property generating new equity immediately. She was able to. And so on payday 3, uh, which is the equity at the end of this deal, she marked up the home $26,400. We're also still receiving principal paydown. We are the owners of the property. We're collecting monthly cash flow from our buyer, uh, and then we're going to pay down the original expenses on this property. So the principal paydown is roughly $12,000 $100 per month. This is amazing. It's an awesome loan. You're going to see this is going to make a significant difference. So if we multiply that by the 24 months, then we're going to get $28,000. $28,800 in principal paydown. Now we already collected deposit up here of $15,000, so we have to eliminate that because that is non-refundable deposit and that is credited towards the purchase price. Which leaves us with a total back-end profit of $39,600. So if you go ahead and add up all these, you have $15,000, you have $6,000, right, plus the $39,000. She has a total on this deal of $61,200. Again, eliminating no, no management, right, because the buyer is treated like and act like a homeowner. No management. No capex because these buyers are treated like homeowners. They're the ones that are managing the entire property. We're typically not going to see any vacancy, right? We don't have to account for that because these buyers have the option to buy it over the next 24 months. So what is truly happening in these types of transactions is you're getting all the benefits of being a landlord without all of the downside. So if you're interested in seeing exactly how we can take your current properties and sell them on rent-to-own to absolutely maximize the amount of profits and completely shrink the amount of expenses on your current properties, go ahead and book a strategy call. Go ahead and click the link below, and we look forward to helping you build a much better, stronger, more profitable real estate portfolio.
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