115: The BRRRRent-to-Own Strategy: A Win-Win for Tenants and Landlords

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 22 September 2021

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

What if you could own rental properties without the responsibility of landlording? Not only that, what if you were paid a hefty, non-refundable deposit for your home, minimizing your risk? Would you start investing under these circumstances? If you like the sound of that, you’ll love the rent-to-own strategy, or as Today’s guest Jessica likes to call her framework, the BRRTOR (Buy, Rehab, Rent-to-Own, Repeat). Most landlords won’t offer rent-to-own to their tenants, not because they don’t want to, but because they don’t know it’s a possibility. This type of seller financing is what Jessica’s entire portfolio is built off of, and it has some major benefits for not only the landlord but the tenant. Jessica also gives some great advice in our mindset segment, specifically relaying that a big part of real estate is making mistakes. Jessica has had some great deals in her real estate investing career, but not every one of them has turned out to be a superstar. The big takeaway for investors should be to start, make mistakes, learn from them, and do better! In This Episode We Cover Combining the BRRRR strategy and the rent-to-own strategy How to vet tenants to find the best candidates for seller financing The importance of putting ownership in the hands of a tenant Finding homes that will profit in this highly competitive market What to look out for when interviewing hard money lenders Understanding that the first deal probably won’t be a home run And So Much More! Links from the Show Real Estate Rookie Podcast Real Estate Rookie Youtube Channel Ashley's Instagram Tony's Instagram Real Estate Rookie FaceBook Group BPCON2021 Facebook Craigslist MLS Zillow Check the full show notes here: https://www.biggerpockets.com/rookie115 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie episode 115.
0:05.0	We've had such high demand after we started marketing this.
0:12.1	We had so many people interested in this that we actually are trying to apply our properties
0:17.7	a little bit more quickly because we have so many people that want to do this.
0:25.4	I'm Ashley and I am here with Tony, your host today of the Bigger Packings Real Estate
0:30.9	Rookie podcast.
0:31.9	Tony, what is new?
0:33.9	It's been a while since we were recording.
0:36.1	I know, right?
0:37.1	It's always like kind of getting back onto the bike after being off for a while.
0:40.8	But what's new?
0:41.8	We had an L.O.I. out on a non-unit hotel here in SoCal and a little late community.
0:47.4	It was rejected.
0:48.4	Was it even an encounter or just rejected?
0:52.9	No, they counter, but they were just asking for way too much.
0:55.4	It was kind of a stellar finance deal.
0:57.5	They wanted a certain number down for down payment that just didn't work at that number.
1:01.8	We told them what our max was so that the deal kind of fell apart.
1:04.6	But as a consolation prize, we just got three more houses in our contract and Joshua
1:08.6	Tree from the same building that we bought a lot of our other houses from.
1:11.4	So we're working on getting that close, hopefully in the next eight to tenish weeks.
1:16.3	I thought there was this conversation where Sarah said that you brought us to where you
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