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

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