Learn How To Do Your Own Rent To Buy Homes

Due to be released to the public in March, 2008, we tap into our many years of Rent To Buy knowledge, and show the average "non investor" type, how to confidently go out and find your own Rent To Buy deal. Most people don't know this, but when you buy a home from a Rent To Buy type investor, they will normally make a profit of $20,000 to $100,000+ from buyers like you! Now you will be able to apply these savings and deal directly with motivated sellers instead. We hope you are as excited as we are about this new system.

P.S. Don't forget to add comments to our guest book below, so we can keep adding articles that will help you along the way. Don't forget to regularly visit our main Rent To Buy website, and if you have not already signed up to be on our waiting list, you can do so by visiting the Rent To Buy Home Sign up page, so you can know the instant our new DIY Rent To Buy Home Study Manual is complete.

We are about to describe to you some of the ways to go about finding your own Rent To Buy Home, with little to no money down... In most cases, as little as $10.00 down and the ability to make regular payments towards a home you can finally call your own.

Many of you have probably heard about For Sale By Owner (FSBO) before. Many of these sellers choose to sell their homes without a realtor because they dont want to pay the expensive commissions, and would rather keep as much as the proceeds of the sale as possible. We find that a large majority choose to sell using FSBO because they have little or no equity. Others have trouble meeting their monthly mortgage payments and want to leave the commitment behind.

Here is where it becomes interesting.

The seller wants their home sold yesterday. You want to buy a home yesterday. This is the beginning of a match made in heaven, provided you both keep singing from the same hymn book along the way.

The first step you need to decide is how much you and your family can easily afford each month to make one of these deals work. Be fair to yourself. Buying a home will always be a bit of a stretch on the finances, but you must make sure that you don't turn the joy of owning your own home, into nightmare that eats all your available funds, and therefore robbing you from the pleasures of everyday life.

Once you have decided on a budget that you can easily afford, its time to start approaching the FSBO sellers and find out how flexible they can be with their terms of sale. By this we mean that you don't want to own the home today. You want to gradually own the home over time. If the owner has little or no equity available, or the main motivation for selling is because of the repayment headaches, then you can propose your value in being able to take these problems away from the seller.

In fact, you can even make the deal better for the seller, if you find they are not sure, by offering them another $5000 - $10,000 on top of their asking price. Remember this: It's not about how much you pay (within reason), but it's more about how soon you pay.

You want to have this arrangement running for as long as possible. We like to go for 5 years or more, whenever possible.

Be prepared to get lots of NO's from the FSBO sellers. The sellers who have little or no equity or have repayment issues will have two choices. Sell to a buyer like you, or let their bank sell their home for them. You just need to keep in touch with those sellers until they come around.

This article has covered how to go about finding your own Rent To Buy Home from For Sale By Owners. In our coming articles, we will address how to get the FSBO sellers to contact you instead.

In our last article, we discussed how to approach and propose your own Rent To Buy Home deal with a FSBO. In this article we discuss the ways to go about finding your own Rent To Buy Home with direct marketing. This means the sellers will be calling you, instead of you calling them.

You will still enjoy a deal with little to no money down... In most cases, as little as $10.00 down and the ability to make regular payments towards a home you can finally call your own.

Lets start out with the assumption that you have decided what your affordable budget is to be able to own your own home, with a Rent To Buy Home.

You know what areas you would like to live in and how much you can afford to pay, so it's time to let the numbers game work in your favour and tell these areas about your home buying services and how you can address the problems that many of them will be facing.

It can be as simple as preparing a bright yellow or orange postcard sized mailbox flyer that reads something like this:

We Buy Your Home Today!

* Do You Have Little Or No Equity?
* Are You Finding The Mortgage Payments Too Much?
* Are You Behind In Payments?
* Are You Going Through a Divorce?
* Is The Bank Wanting To Forclose?
* Are You At Risk Of Loosing Your Credit?

These problems and many more are common reasons for needing to sell quickly. We buy houses in your area and can your price with flexible terms.

Call 999 9999 9999 24 Hours 7 Days A Week

As you can see, this kind of letterbox drop addresses many of the reasons why people need to sell fast. If you can help them sell fast and achieve a price that stops them loosing money, they will hold you in high regard.

We normally print between 25,000 - 100,000 of these postcard sized letterbox flyers. If you have your own printer, you can print 1,000 - 3000 at a time, and walk these flyers around yourself, as this will save you money. Otherwise, if you have the money to spend on printing and distribution, pay for these services and wait for the phone to ring. It will ring! Make sure you use bright yellow or orange colored paper though. We have found this to always work better.

When you start getting calls, you will need to have a list of questions ready, so that you can work out everything about why they need to sell, so that you know right away if you will be able to help them, while helping yourself at the same time.

We normally structure our calls like this:

Kerrie: Hello, this is Kerrie speaking.

Caller: Hi, I'm calling about the flyer I received in my letterbox about buying my home.

Kerrie: Okay, so you have a house you need to sell?

Caller: Yes

Kerrie: Okay, well I will do my best to see how we can help. Before we get started, I will need to ask you some questions about the home and the financials so we can work out if its possible to help you or not. Do you have time to go through those questions now?

Caller: Yes, sure

Kerrie: What is your main reason for selling?

Caller: Well, I am being transferred with my job and need to relocate... Or... I am finding the mortgage payments are becoming too much for us to keep managing... Or... We are behind by a couple of months, and the bank is putting pressure on us to sell...

Kerrie: Okay, how much do you want for your home?

Caller: Well, I know similar homes in the street have sold for $XXX,XXX... Or... We would be happy to just get what is owing on the home... Or... We are pretty flexible but we don't want to give it away...

Kerrie: Okay, so how much is owing on the home right now?

Caller: The current balance is about $160,000

Kerrie: Okay, so what are the monthly outgoings the mortgage and all the other outgoings? (This is important, because some mortgage rates will be lower then others and will determine the size of the monthly payments).

Caller: Its about $1,200 per month for everything.

Kerrie: Okay, it sounds like we have have a way to be able to help you. Provided we can prove the value of the home, and if we can pay you what you want, can you give us flexible terms?

Caller: What do you mean?

Kerrie: Well... If we can fix these problems, by taking over all the outgoings right away, and take away all financial pressures, can you give us time for closing the sale?

Caller: How much time do you mean?

Kerrie: It really depends. We like to have up to five years, but it can happen much sooner then this. It all depends on how soon we can create some equity to be able to close the sale. The sooner the better, but we would like to have up to five years... But remember, all your outgoings would be covered by us until we close the sale.

Caller: Yes, that sounds great... Or... No, that does not work for me (Politely end the call at this point)...

Kerrie: Okay, let me a time to meet, so I can see the home and we can work out all the details.

Caller: Okay, how does Saturday at 10.30am sound?

Kerrie: That sounds fine. Do you have a partner?

Caller: Yes, my wife owns the home too.

Kerrie: I will need both of you at the meeting, so we can all discuss the sale.

Once the appointment is made, its your job to work out if you like the home or not. If you don't like the home, then you don't have to buy it. If you do like the home, then you can move forward with the purchase and become a happy home owner.

In the coming articles, we will talk about the terms you will want to include as part of the sale.

In our last article, we discussed how to approach and propose your own Rent To Buy House deal through direct marketing to sellers. In this article we discuss how to work with motivated sellers. Now that you know how the direct marketing works, you need to know how work with the seller and make the sale really rewarding for both of you.

The one point we want you to take away from this article is - What Goes Around Comes Around! When you are working with your sellers, always put yourself in their shoes, and try to relate to how they are feeling right now. Don't be like a hard nosed investor, trying to screw them down while they are at a low point in their life. The whole point of this exercise is to help you get into your own home, while helping the seller not loose their home to their bank.

Lets begin...

You have told the sellers who did not meet your criteria that you personally can't help them, but with their permission, you would let other home buyers know about their home. ** Remember, you don't want your time wasted, so don't waste a sellers time by going to an appointment if you know for sure you can't do the deal.

So you have gone through the example phone call script and narrowed down a few possible and probable deals that fit into your budget and criteria. You have made the appointment during a time that suits you both to go and look at the house and take photo's if required. By using the checklist in the DIY Rent To Buy Manual, you check for possible repairs that may be required, so you can do your sums on costs that you may need to pay once you are in the deal.

Provided the home meets all your requirements, its now time to provide the seller with the information sheets that we supply in the DIY Rent To Buy Manual, and ask them to take this to their legal representatives who are looking after their sale. This is where many deals get knocked on their heads, through lack of understanding from the sellers legal firm.

You don't want to waste valuable time and money asking your legal representative to contact the sellers legal representatives, because this will only cost you money. Find out first that the sellers legal people understand what is to be achieved, and that they are happy to represent the sale for the seller. You need to do this on all the houses you find that meet your criteria.

Make sure you explain to each seller that you are looking a a few homes under the same terms right now, and its really just a matter of what seller is happy to work with you first. Being open and honest with every seller about your intentions and actions is the best policy. Don't ever leave anyone wondering why you purchased another home and walked away from their deal. In other words, make sure everyone is singing from the same hymnbook.

Once the first seller has come back to confirm their legal representatives are happy with the terms of sale, then have your legal people get in touch with the sellers legal people, and start the process. We are assuming you have already qualified your legal representatives. If you have not, then you must do this before you get started, to save money and wasted time on your part.

Once seller and your legal people start the process of dotting the i's and crossing the t's you can be ready to move into your new rent to buy house in less then one week, and sometimes, within 24 hours!

Stay tuned for the release of our new DIY Rent To Buy Manual, so you can finally get off the rental roundabout too. Sellers can finally have alternatives to handing their homes to the bank for a firesale as well!