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Tips For Doing A Rent To Own! #shorts

29 May 2024 · 0 min

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When structuring a rent-to-own deal, lock in the future sale price upfront in your contract. The speaker used his local market's historical 6% annual appreciation from 2013 to 2017 to predict what the house would be worth three years later.

The market is too crazy. When you do a rent-to-own and it's going to be a 3-year deal, you need to decide as you're signing the agreement with the tenant buyer what you're going to sell them the house in 3 years. Well, in 2013, '14, '15, '16, '17, it was easy because you'd add, at least in the area where we were doing the deals, you'd add 6% a year. And we were almost dead on every time we were selling a house at the end, that was the value.