WHY & HOW IT WORKS
Rent-to-Own Opportunities for the Investor
It is not hard to find a great deal on a house, especially in buyers market, but buying the house “right” is only half of the equation. The other half depends on a number of things: market conditions, market rents, and the time of year. Can it be sold for a profit? If it’s rented, will it be enough to cover the mortgage? Is this a good time of the year to sell or rent? The wrong decision could turn a great deal into a nightmare. Why speculate? The short answer: you shouldn’t.
Why our Rent-to-Own Program works:
There are three specific reasons Rincon Ventures RTO Programs work for all parties, the RTO Buyer and the Investor.
- The elimination of land lord issues through the use of Rincon Ventures Property Management. This is ideal for the passive investor and those investors that accumulate more than one property.
- The tenants are responsible for picking the house; of course it is with the help of a Rincon Ventures agent. This is a unique aspect of our Rent-to-Own program. The best tenants out there are the tenants that love the house they occupy. They love the house because they think of it as their house, and they take care of it because it will be their house. All of the opportunities we offer to investors have tenants attached. In our program there is no speculation, no worrying about carrying the mortgage on an empty house, and no money spent advertising for renters. We have adequately addressed each of those concerns, so our investors don’t have to.
- The house itself. No other investment opportunity is quite like what we have to offer. The house is insured, the house will appreciate, and the house will remain when all else fails. In our RTO Program, the investor’s protection is the house.
How our Rent-to-Own Program works:
The nuts and bolts of it: An RTO Buyer is identified the qualified. With the assistance of a Rincon Ventures Realtor, the qualified RTO Buyer selects their dream home. That house, with the RTO buyers attached as tenants, is offered to an investor. The investor obtains the loan for the house and has the RTO Buyers sign a two- or three-year lease and a purchase contract with a future price and date. The RTO Buyer obtains financing at the end of their lease and buys the home from the investor. The lease and the RTO Buyers are managed by a professional property management company (Rincon Ventures). The RTO Buyer successfully purchases their dream home, and the investor makes a nice return for his/her efforts. Everyone wins.
Home Buyers come to Rincon Ventures with the intent of purchasing a home, but for a number of reasons, obtaining a mortgage at the present time is not possible. Some typical reasons that people become RTO Buyers are; no down payment money, or a glitch in their credit history. After a careful evaluation and qualification process, Rincon Ventures determines the eligibility of the RTO Buyers. Once qualified, the RTO Buyers are admitted into one of several rent-to-own programs that address their specific needs and one that gives them the best opportunity to obtain the home of their dreams. With the help of a Rincon Ventures agent, the RTO Buyers will identify a number of properties that meet their criteria of a “Dream Home”. Once several properties have been identified, Rincon Ventures will either buy the home and/or offer the opportunity to a real estate investor. Once the home is purchased, the RTO Buyers will move in as tenants with a long-term lease (minimum 24 months), monthly rent (based on the value of the home), a predetermined rent credit (up to 30%), and a future purchase price based on 7.5% appreciation. Sixty days before the completion of the lease, the RTO Buyer will start the process to obtain financing to purchase the property from the investor at the agreed upon sales price. At this point, the investor has a several options available for the proceeds. He/she can either accept the long term capital gains tax, or defer the taxes through a 1031 Exchange. Rincon Ventures will always have opportunities for investors with 1031 Exchanges.