So why on Earth would anyone want to purposefully sell an investment property or little to no money down? That doesn’t sound like a good business strategy to most investors. A rational person would want to collect as much moolah down as possible. 9 times out of 10 you would be correct.
About once 6 times a year for the past several years I will purchase homes that need to be renovated before they are able to be considered “livable.”
Livable: as I define it. Livable is a description about the condition of the home in discussion. One person’s definition of livable is not necessary another person’s definition.
About 6 times a year I offer mobile home housing “Rent-to-Own” with nothing required to move in. I love these deals! Why?
I love these fixer upper deals (handyman special) deals because if you know what repairs are no sweat than you can purchase homes that need repairs but will sell in a matter of days not weeks or months.
Why not do the repairs yourself and get more money down? Again this comes down to personal preference. How is your time best spent? Do you currently have the money to fix a property to livable condition? Do you like doing repairs? Can the property start cash-flowing today if you put a qualified tenant-buyer in the home to pay you monthly?
I currently have a waiting list of over 225 names and families that are eagerly looking to give me money each month for a “Rent-to-Own” property that they can use sweat equity in replace of a cash down payment.
I would rather get a mobile home in need of repairs sold so that the home can start producing cash-flow rather than spending time fixing the home and worrying about holding costs adding up.
Sell the home, collect your monthly payments and continue making deals!!! That’s my motto…
It is important to remember that some of these “handy buyers” may not have great past credit or rental history. So screen your all your tenant/buyers well.
- John
Tags: repairs
Leave A Reply (4 comments So Far)
Tom Smock
670 days ago
~ Tom
Administrator john
670 days ago
Tom, I have been hustled by fly-by-night gurus too. I wont mention any names here but they are all out there. But remember it is NEVER too late to start investing correctly. ITS ALWAYS A GOOD TIME TO MAKE MORE MONEY!!! -John Fedro
Kris Kemp
668 days ago
Hi John,
Excellent idea–use sweat equity as down payment and then rent-to-own. After reading the books on mobile home investing by Lonnie Scruggs, it appears that this is a great way to earn monthly income with little investment. I like your idea of a waiting list, perhaps I’ll put together a capture page in order to get people on a waiting list for mobile homes that I intend to purchase and rent or rent to own. Thanks for your post!!!!
John Fedro1
668 days ago
thanks Kris, mobile homes are amazing in the ROI department. Go as far as to have a priority list of tenant-buyers that would like to get pre approved with you. Charge them a fee and run their credits to get it out of the way in advance… plus it shows they are serious about home ownership. John