I have not blogged in sometime and I have not looked for my own rent to buy deals for sometime, until this past weekend. I realized that making deals and structuring rent to buy deals is something I really love. Real estate investing is in my blood - especially rent to buy deals. Rent to buy deals are also the most profitable thing I can do right now.

I looked at approximately 15 homes and made offers on 5! As an investor, it's highly unusual to find that high of percentage of houses to make offers on in that short of time. It just goes to show how hot the current market is for investors. The rent to buy market is just as hot!

 

Rent to Buy Deals on the MLS

Here is one deal that I found this weekend - right on the MLS!

$34,000 - brick home with 3 bedrooms, 2 baths, basement and garage. It has good schools and in an all brick area. It is NOT in the hood or in Detroit at all. I can rent this home for around $1100 per month or do a rent to buy for around $99,000. So? Why am I not doing more of these rent to buy deals? Great question! I am kicking myself right now, as I haven't done enough rent to buy deals lately.

But I'm back in the saddle both doing my own deals and sharing with students and readers here on my blog. Just as I thought, this is a great time to be investing. It's a buyers' market with the added benefit of being great to rent or flip houses with a rent to buy program.

Might be a Round Trip With This Rent to Buy House

I also put an offer in on one for $27,000 that I sold about 7 years ago for $132,000. Imagine doing so many deals that you start to buy back your old inventory . I could sell that one on a rent to buy contract for close to $100,000.

So you might ask, "Why would someone sell it to me for that low price?" Cash is the secret weapon in today's market. Very few buyers can make all cash offers. Distressed sellers want to sell now. They could accept multiple offers for considerably more than my offered but their chance of closing the deal is slim.

In today's market, the seller has two big challenges when it comes to a financing contingency. First, lending standards are so tight with banks that most people can't qualify for a loan. That's part of the reason there are so few buyers in the market. Of course, most realtors require a buyer to prequalify before they'll spend time showing houses.

So, you would think the buyers in the market would make a similar low ball offer to what I made and the seller would accept the higher of the two, knowing the other buyer is prequalified. Nope, cash is still king. When you can buy with cash, you can run a very profitable rent to buy program.

You see, those with a financing contingency need to have the house appraised. Lender appraisals are like the loan standards. Appraisals are very conservative now and some even assume the market has not found the bottom. So again, the financing contingency is not a sure deal for the seller.

On the other hand, my all cash offers have no financing contingency and don't require an appraisal. And there's no lender anywhere in the deal. It's just me and the seller. We can close the deal in two or three days if the seller needs to get out that fast. And I can move on to my next rent to buy deal.

I hope several of my offers get accepted. I'm excited to turn them into rent to buy deals.

I also have a Realtor team if you want one of these rent to buy deals yourself - let me know. There are enough out there for you also.

Fellow real estate investors:

We have a unique and short-lived opportunity to make some serious money using the "First Time Homebuyer Tax Credit," which will be in effect through December 1st, 2009.

If you own homes, or plan to this year, you can sell them on land contract and collect 10% of the purchase price - up to a total of $8,000 - as a down payment.  And it won't cost your buyer a thing - he gets the money directly from the government!

This attractive and profitable strategy can be dangerous for you and your buyer unless you understand all the legalities and tax consequences, though, so on Tuesday, September 1st at 8PM EST, I am holding a free webinar on exactly how to make these deals work legally and ethically.  We'll cover.

• What a land contract is, and how it helps Americans become homeowners while making you a bunch of money
• What the "First Time Homebuyer Tax Credit" is, how it works, and which of your buyers can qualify for it
• How to make sure the buyer's tax credit ends up in YOUR POCKET, not his - and which forms the IRS requires to make the refund
• How to make properties for sale on land contract, how to set up the deal to succeed, and much more

Don't miss this once in a lifetime opportunity to get cash AND cash flow selling on land contract - and don't miss this webinar about how to do it right.

The webinar is Tuesday, September 1st at 8PM EST and you MUST pre-register at:

https://www2.gotomeeting.com/register/123600618

You literally won't see this information anywhere else, don't miss it!