EP37: Rent to Own with Jenn & Joe Delle Fave
Welcome back to the Women Invest In Real Estate podcast! This is episode three is our four-part mini-series with Jenn and Joe Delle Fave and we are so excited to dive into today's topic: rent to own. Rent to own has a very specific creative financing strategy that Jenn and Joe are well-versed in.
But, before we get started if you haven't listened to the first two episodes in this mini-series follow these links to check them out:
Jenn and Joe began implementing the rent-to-own strategy in 2017. They had a handful of single-family homes rentals at the time and the thought of being a landlord became overwhelming and simply put, daunting. They were self-managing all of their rentals when they stumbled upon this new process and they decided to take it head-on. The summer of 2017 was a crazy summer for Jenn and Joe. All of their leases were coming due so they decided to give their tenants first right if they wanted to purchase the homes, which none of them did. They all moved out and Jenn and Joe converted all of the single-family homes into rent-to-own properties.
The reason why they love this strategy so much is that they get to help their renters turn themselves into homeowners; what many would call the American dream. While they’re technically losing doors if tenants buy the property but that's okay because they can always get more doors. Their goal is to work with tenant-buyers and collect a large non-refundable option deposit upfront before they move in.
The tenants then continue to pay monthly rent and Jenn and Joe make cash flow each month. also with rent to own the tenant-buyer is responsible for items such as maintenance, any repairs to the property, and all utilities. Also, the tenant is more likely to keep up with all of the repairs and home maintenance when they're planning to purchase the home in the long run and they've already paid the non-refundable option deposit. Those tenants are treating the home like their very own, decorating landscaping and making it theirs and that is a really cool thing to be able to do for someone who might not otherwise have the opportunity to purchase a home.
Some of their favorite ways to advertise their rent-to-own properties are:
Facebook groups and/or marketplace (surprise, our favorite too!)
Craigslist
Zillow
Road signs
…Any…way…possible!
With all of these methods, you can typically expect a huge influx of interest, but the key to filtering through all of them is to look specifically for the people who have that non-refundable option deposit, in hand.
That concludes episode three of our four-part creative financing series with Jenn and Joe, make sure you tune in next week for the fourth and final episode! We’ll catch you next week, friends!
Resources:
Book a Consultation Call with Jenn & Joe and mention WIIRE to receive $2,500 off their programs!
Listen to Episode 35
Listen to Episode 36
Visit Jenn’s website
Connect with Jenn & Joe on Instagram
Check out Jenn & Joe on YouTube
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