hi I’m Evan Carmichael welcome to an
edition of ask Evan in today’s episode
I’m going to answer question from one of
my newsletter readers Indra who is a
real estate investor buys buildings and
then rents out the units and it’s having
a hard time convincing the people who
rent to then want to buy and own the
units so it’s offered as an option to
rent to own and basically provide as
much information as possible to make it
really easy for somebody to become an
owner instead of just a renter but it’s
having a hard time convincing people to
make that stuff from being erected to a
buyer and one of my advice on how to do
it so Indra thanks for the question I
think when you’re dealing with renters
and buyers is different breeds and at
some point in somebody’s life they they
make you that transition where they want
to you know own but it could take years
and you may not have time to wait that
out I think the biggest challenge for
you is in your qualifying at the
beginning and instead of making an
option to be rent to own I’d make that a
mandatory thing so you’re looking for
people who want to buy right and you can
give them a program where it’s either
six months or a year I don’t know
however long you want them to be you
know breakfast for before they buy but
you make that part of your qualification
process so you’re not just getting any
renter in there you’re getting somebody
who from the beginning understands that
this is the program that you set up for
them and there are people who do want to
you know rent to eventually own but
there’s a lot fewer than than than just
people who want to be renters right so
you got to go and find them and do your
marketing to find them it’s a lot better
i think then trying to go after just any
renter somebody who’s not a qualified
prospect and hoping to turn them into an
ideal customer so with any business you
want to you know i like the idea of
using a thin wedge into the market so
you have something that’s easy for
people to to buy and get used to want to
use and then as you get into the
business you’re able to sell more to
them and upsell them but it has to be an
ideal client you don’t want to spend a
lot of time working with that you know
thin wedge in and that’s your only
entering into that business so for you
how do you apply that to your market you
don’t want to bring on the renter
who will never become owners if you know
that they have no intention of ever bind
then don’t bring them in as a renter at
the beginning you know unless you really
really need that cashel to start maybe
you segment them maybe half of them are
just renters and half you really focus
on getting people who want to become
owners right from the very beginning and
when it’s something that’s a little bit
in the future it’s a lot easier to to
sell people on it I find so you can say
if it’s six months or it’s a year or two
years or however long it is before you
want them to buy then if the sign up to
that up front it’s a lot easier because
that that pain point of changing your
life and having to become an owner is in
the future so the pain I just hit my
light there the pain is a lot is a lot
less because it’s so far in the future
so it’s a lot easier I think to do that
then to then have them as a renter and
then the pain comes on them and then
they don’t want to make that change so
if you make them sign up for that from
the very beginning then I think you’re
going to have much better chance to be
able to get people to you know go on the
program that you want it’s more work up
front to get the qualified people that
you want for your business but I think
you’ll end up being a more successful
business owner if you’re able to get
those people on that’s my take I wanted
to then invite my friend John who John
Carter who was a real estate investor an
entrepreneur to share his two thoughts
and give you some feedback as well and
how you can how you can get that
business going
thanks for the introduction Evan and I
appreciate the opportunity to answer
angels question I’m John Carter with
Parker’s real estate investments and you
can find out more information about me
at John Carter CA or Petrus CA my
background in real estate is in all
types of real estate investment from
single-family to large commercial
properties currently have a focus on
multifamily limited partnerships so to
answer your questions indra i would
first ask you on the rent to own
strategies why are you trying to
convince rental mentality people to own
that’s the first question there’s
oftentimes in every major city in north
america thirty to forty percent of the
population who rent and even though i
have the same belief that i think all
moaner ship is the smartest decision
financial decision especially for the
average person it’s often not right for
everyone and if they don’t have the de
financial discipline to save on a
monthly basis spend less than they make
and put that money away towards a down
payment there’s a reason they can’t buy
and also if your marketing program is
effectively marketing to give something
for nothing that’s the perceived value
of it nothing so i would suggest for you
to look at your lead generating systems
the marketing you’re doing and perhaps
the type of properties you’re buying and
targeting as to improve the quality and
improve your qualification in the target
rent-to-own customer that you’re after
to your second question around financing
my game first question to you is why are
you buying all cash I’m understanding
you have a flip business model where
you’re buying an improving properties
great strategy and can be an excellent
way to get started in real estate
investment and most people do start that
way I have one past colleague client who
had a great system renovating an average
of over 50 homes a year for several
years in a row and they did so with
$500,000 capital that they were
revolving
an established relationship with one
lender they had a very tight system set
renovation set type of property they
were buying and they would keep
properties along the way and it’s often
times easier to get financing when
lenders both as well as private lenders
CD you have some of the existing assets
so those would be my tips for you and
feel free to contact me if you had any
additional questions I’m always happy to
talk real estate investment with anyone
you can reach me at John Carter CA or
for more information and investment tips
visit p trust CA for parkhurst thanks
very much take care so indra i hope that
helped i hope what I said was useful i
hope what johnson was also helpful thank
you John for joining us for this for
this video if you guys like the video
please give it a thumbs up below makes
me want to keep more of these videos
coming for you and I’d love to hear what
you have to think if you have a comment
or question leave it down there in the
comments below and we’ll see you on the
next episode
you
edition of ask Evan in today’s episode
I’m going to answer question from one of
my newsletter readers Indra who is a
real estate investor buys buildings and
then rents out the units and it’s having
a hard time convincing the people who
rent to then want to buy and own the
units so it’s offered as an option to
rent to own and basically provide as
much information as possible to make it
really easy for somebody to become an
owner instead of just a renter but it’s
having a hard time convincing people to
make that stuff from being erected to a
buyer and one of my advice on how to do
it so Indra thanks for the question I
think when you’re dealing with renters
and buyers is different breeds and at
some point in somebody’s life they they
make you that transition where they want
to you know own but it could take years
and you may not have time to wait that
out I think the biggest challenge for
you is in your qualifying at the
beginning and instead of making an
option to be rent to own I’d make that a
mandatory thing so you’re looking for
people who want to buy right and you can
give them a program where it’s either
six months or a year I don’t know
however long you want them to be you
know breakfast for before they buy but
you make that part of your qualification
process so you’re not just getting any
renter in there you’re getting somebody
who from the beginning understands that
this is the program that you set up for
them and there are people who do want to
you know rent to eventually own but
there’s a lot fewer than than than just
people who want to be renters right so
you got to go and find them and do your
marketing to find them it’s a lot better
i think then trying to go after just any
renter somebody who’s not a qualified
prospect and hoping to turn them into an
ideal customer so with any business you
want to you know i like the idea of
using a thin wedge into the market so
you have something that’s easy for
people to to buy and get used to want to
use and then as you get into the
business you’re able to sell more to
them and upsell them but it has to be an
ideal client you don’t want to spend a
lot of time working with that you know
thin wedge in and that’s your only
entering into that business so for you
how do you apply that to your market you
don’t want to bring on the renter
who will never become owners if you know
that they have no intention of ever bind
then don’t bring them in as a renter at
the beginning you know unless you really
really need that cashel to start maybe
you segment them maybe half of them are
just renters and half you really focus
on getting people who want to become
owners right from the very beginning and
when it’s something that’s a little bit
in the future it’s a lot easier to to
sell people on it I find so you can say
if it’s six months or it’s a year or two
years or however long it is before you
want them to buy then if the sign up to
that up front it’s a lot easier because
that that pain point of changing your
life and having to become an owner is in
the future so the pain I just hit my
light there the pain is a lot is a lot
less because it’s so far in the future
so it’s a lot easier I think to do that
then to then have them as a renter and
then the pain comes on them and then
they don’t want to make that change so
if you make them sign up for that from
the very beginning then I think you’re
going to have much better chance to be
able to get people to you know go on the
program that you want it’s more work up
front to get the qualified people that
you want for your business but I think
you’ll end up being a more successful
business owner if you’re able to get
those people on that’s my take I wanted
to then invite my friend John who John
Carter who was a real estate investor an
entrepreneur to share his two thoughts
and give you some feedback as well and
how you can how you can get that
business going
thanks for the introduction Evan and I
appreciate the opportunity to answer
angels question I’m John Carter with
Parker’s real estate investments and you
can find out more information about me
at John Carter CA or Petrus CA my
background in real estate is in all
types of real estate investment from
single-family to large commercial
properties currently have a focus on
multifamily limited partnerships so to
answer your questions indra i would
first ask you on the rent to own
strategies why are you trying to
convince rental mentality people to own
that’s the first question there’s
oftentimes in every major city in north
america thirty to forty percent of the
population who rent and even though i
have the same belief that i think all
moaner ship is the smartest decision
financial decision especially for the
average person it’s often not right for
everyone and if they don’t have the de
financial discipline to save on a
monthly basis spend less than they make
and put that money away towards a down
payment there’s a reason they can’t buy
and also if your marketing program is
effectively marketing to give something
for nothing that’s the perceived value
of it nothing so i would suggest for you
to look at your lead generating systems
the marketing you’re doing and perhaps
the type of properties you’re buying and
targeting as to improve the quality and
improve your qualification in the target
rent-to-own customer that you’re after
to your second question around financing
my game first question to you is why are
you buying all cash I’m understanding
you have a flip business model where
you’re buying an improving properties
great strategy and can be an excellent
way to get started in real estate
investment and most people do start that
way I have one past colleague client who
had a great system renovating an average
of over 50 homes a year for several
years in a row and they did so with
$500,000 capital that they were
revolving
an established relationship with one
lender they had a very tight system set
renovation set type of property they
were buying and they would keep
properties along the way and it’s often
times easier to get financing when
lenders both as well as private lenders
CD you have some of the existing assets
so those would be my tips for you and
feel free to contact me if you had any
additional questions I’m always happy to
talk real estate investment with anyone
you can reach me at John Carter CA or
for more information and investment tips
visit p trust CA for parkhurst thanks
very much take care so indra i hope that
helped i hope what I said was useful i
hope what johnson was also helpful thank
you John for joining us for this for
this video if you guys like the video
please give it a thumbs up below makes
me want to keep more of these videos
coming for you and I’d love to hear what
you have to think if you have a comment
or question leave it down there in the
comments below and we’ll see you on the
next episode
you
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