This article will teach you the proven and probably the most successful way to find a home of your own. I will be discussing the lease with the option to purchase strategy. How to rent to own your dream home will be the buying method we will be discussing. As you begin this process and you follow through with the steps, you will see results in the shortest amount of time possible.
Your consistent effort will produce results that will amaze you. This technique will double and, in some cases, triple the number of sellers who will be open to discussing with you the lease with the option to purchase the strategy of their home.
The terms “Rent-To-Own” and “Lease with Option to Purchase” basically mean the same thing. I will use them interchangeably.
This strategy works in a buyer’s or seller’s market. Even in a soft economy or slow housing market, it produces results for the knowledgeable home buyer. My wish for you is much success as you begin your journey toward becoming a future homeowner.
Begin Your Home Search by Driving through Neighborhoods
Pick a few neighborhoods that appeal to you. When you get there, slow down and look at things with a more critical eye. Look at the different homes up and down the streets.
Are they new or older homes? Do they seem to be well-maintained? Are the yards clean and mowed? Are the streets free of trash and other debris? These are important questions to ask.
You will only want to look for homes in neighborhoods where you will want to live in, where you will have the “pride of ownership”.
If you have children, you will want to know if there are families residing there with children as well. Look to see if children are playing outside of the home. Are there toys or playground equipment in view? Look for parks where families would go for fun and recreation.
Take different routes to view all the streets in a subdivision. Decide to drive through at different times of the day. You may be able to notice traffic patterns and busy intersections.
When appropriate, park your car and walk or ride a bike along the streets. At this slower pace, you can be more observant of clues that may reveal a potential rent-to-own opportunity. Be on the lookout, especially for vacant houses.
When you see one, write down the property address and do some research to find out the owner’s name. If you can do so, give him a call, and see if the home may be a rent-to-own possibility.
Next, look for homes that are ‘for rent’ or ‘for sale’ (by owner). Write down the phone number from the sign and contact the seller.
As you walk through the area, strike up a conversation with any folks you meet. Tell them you are looking to buy a home in the neighborhood. Ask them if they know of any houses for sale. Ask what they like about the neighborhood and what they don’t like.
Remember, how to rent to own your dream home begins with finding the right neighborhood.
CLICK HERE if you would like this article for future reference in a PDF format
Calling on For Sale and For Rent Ads
It’s important to develop good phone skills when calling on these ads. Using the newspaper can be very profitable and a great time saver.
Now when talking to the seller, listen carefully for the seller’s motivation. See if you can discover his level of need.
Does he have a pressing need to get out of the home quickly or is he just ‘testing’ the market to see if he can get his asking price? You need to decide.
If you discover a pressing need, ask him if he would consider a lease with the option to purchase. You will probably have to explain to him how this technique works. If he seems open to it, make an appointment to see the home and talk further.
Calling on “For Rent” Ads
Begin calling on the “for rent” ads first. By calling on these ads, you have overcome one main objection. Sellers want to sell their homes not rent them.
However, landlords want to rent, so you don’t need to convince them to. What will be necessary is for you to see if they would be willing to lease the home to you with an option to buy.
Many landlords are in the rental business as investors. They do not want to sell in the short term. Your job is to find the ones who do want to sell now.
The landlords who do want to sell now may not be landlords by choice. They may have tried to sell their home recently, but it did not sell.
It may have become necessary to rent the home out, cover the mortgage and pay other expenses associated with the house. He may even be an absentee owner, having moved out of the home and living in another city or state. The home may be vacant. He may be under pressure to get it occupied as soon as possible.
Calling on “For Sale by Owner” Ads
“For sale by owner,” ads should be called next. These calls will be more difficult. Many of these sellers must sell their homes and cash out. They cannot wait to receive all their cash. They may need the money from the sale to move or purchase another home.
Others are not flexible due to recently putting their house on the market. They feel that the home has not been for sale long enough. They want to ‘test’ the market to see what price their home can bring. However, circumstances change.
These sellers could be interested in a rent-to-own at some point in the future. Keep Following-up on those who have a slight interest in offering their home as a rent-to-own. Remember, life situations change. They may not be that interested today, but they could be more interested at some point in the future. Don’t give up.
Place your Ad in the Paper
Remember, classified advertising is charged by the line, so your ad should be short and to the point. Take time to research how to write great ads. Whatever wording you use, it must be attention-getting and create interest. Test the ad in different papers to see what works best.
Don’t limit using your ad in daily papers only. Weekly papers such as the American Classifieds or a local shopper are also good choices.
These publications have good circulation and are usually read from front to back.
You will need to be prepared when a seller calls. He may not understand how a lease with the option to purchase works but was motivated enough to call. You should have a working knowledge of the rent-to-own technique. When you understand the steps of how to rent to own your dream home it will much easier to communicate it to the seller.
The seller will need to be educated on how it works. You will not have to go into detail over the phone. Just explain the “big picture” and answer his questions as best you can.
If you sense in your discussion with the seller that there may be a rent-to-own opportunity, make an appointment with him to go out and see the house. Talking with the seller face to face and being at the property will give you a better feel of the situation. You can also see for yourself if he described the property as he indicated over the phone.
Visiting the Home
First, keep the appointments that you make with each seller and be sure to be on time. If you are not sure how to get to the property, ask for directions. Don’t attempt to remember them, write them down.
If something comes up and you need to cancel or you will be late, call and let the owner know. He is expecting you to keep the appointment, so give him this courtesy.
Believe me, when I say, there is very little else that irritates a seller than prospective tenant/buyers not showing up for appointments or calling to cancel.
Application Process
If you show sufficient interest in the home, and you are prepared to enter into a rent-to-own agreement, the seller will ask you to complete an application.
Each person over the age of eighteen who will live in the home will need to complete a separate application. There will probably be a small fee for processing the application. The most important aspect of completing it is, to be honest and complete in your answers.
For additional tips that discuss more specific little-known lease purchase secrets, read my article, “8 Tips To Lease Purchase Your Dream Home”
Conclusion
You now have the information at hand to get you started with your search to find rent-to-own possibilities. Don’t delay. I suggest that you take immediate action.
Don’t let fear or indecision freeze you up. Remember, you don’t need to have all the answers upfront. You can take “imperfect action”. Just get started. As you do, things will begin to work themselves out. When you use the buying method of how to rent to own your dream home, your success is close at hand. I wish you much success!
CLICK HERE If you would like this article for future reference in a PDF format.
I’m real estate investor, self-improvement coach, author, and publisher, Don Mayer. I would love to connect further with you to help you achieve your goals. If you are interested in learning more about lease purchasing a home, please take a look at my entry-level rent-to-own guide “The Ultimate Home-Finders Workbook”, and consider coming aboard and learning the steps to moving into a home of your own!
