427: Is Rent-to-Own the Easiest and Most “Passive” Way to Scale Your Portfolio? w/Jenn & Joe Delle Fave

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 3 July 2024

⏱️ 53 minutes

🔗️ Recording | iTunes | RSS

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Summary

Do you have a cash flow problem? Maybe property management fees are setting you back, or you’re spending too much on repairs and maintenance. Today, we’re bringing you a powerful solution that will not only solve your cash flow problems but also help you scale your portfolio faster than you ever thought possible! Welcome back to the Real Estate Rookie podcast! Jenn and Joe Delle Fave were content with buying one rental per year, an impressive feat for any rookie investor. But then they discovered an investing strategy that gave them even more buying power and the ability to take down several deals each year. Since pivoting to this business model, they spend less time managing their properties, enjoy three different types of cash flow, and help renters become homeowners in the process! In this episode, Jenn and Joe will tell you everything you need to know about the rent-to-own strategy and how to get started without buying any new rentals. Along the way, you’ll learn about building your buy-box, finding and screening high-quality tenant-buyers, and creating option and lease agreements. They will even walk you through one of their deals and share some potential rent-to-own pitfalls to avoid! In This Episode We Cover The most “passive” way to get MORE cash flow from your rentals The three types of cash flow that come with rent-to-own homes Why the rent-to-own strategy is the easiest way to scale your portfolio How to build your rent-to-own buy box and find high-quality tenant-buyers The two agreements you NEED when placing a new tenant-buyer And So Much More! (00:00) Intro (01:05) What Is Rent-to-Own? (08:34) THREE Types of Cash Flow?! (16:58) Lease & Option Agreements (26:00) The Renter's Path to Homeownership (33:34) Getting Started & Common Pitfalls (38:58) Where to Find Tenant-Buyers (44:32) Connect with Jenn & Joe! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-427 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie episode 427.
0:04.8	So, Ricky's, I'm sure all of you listening,
0:07.1	want to learn how to scale your real estate portfolio faster,
0:10.6	and that's what today's episode is about.
0:12.2	My name is Tony J Robinson and
0:13.6	welcome to the Real Estate Rookie podcast where every week, three times a week
0:17.1	we bring you the inspiration, motivation, and stories you need to hear to
0:20.3	kick start your investing journey. And today's guest are a husband and wife team that went from buying one rental a year which in and of itself is a great achievement to buying get this five a year after switching their investment strategy and it's even more
0:35.3	passive than traditional rentals and it's called rent to own and it generates more cash flow
0:40.8	and creates the velocity for them to scale their portfolio so much faster.
0:44.8	So today in this episode we're going to discuss how to set up a rent-to-own agreement.
0:49.6	We're going to do a real deal breakdown of this actual strategy. We're going to talk about how to find the ideal
0:55.3	tenants and how you can use this to 5X your portfolio. So Jen, Joe, welcome to the Real Estate
1:01.2	Ricky podcast. Thanks so much Tony.
1:03.2	We're so excited to be here.
1:04.3	Yeah, thank you so much.
1:05.4	Yeah, now guys, Rent to Own, right?
1:07.4	It sounds like a, you know, there's all these different strategies, right?
1:10.4	We just recorded a podcast not too long ago about sober living.
1:13.0	Obviously there's all the different creative finance strategies, but like rent to own is something we haven't really talked a lot about from the landlord's perspective.
1:20.0	So could you maybe define what the Rent to Own strategy is
1:24.6	and how it's helped the both of you
	...

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