Recession Proof Real Estate Strategy

Video Transcription

Neal Johnson: The real estate market is booming in Dallas-Fort Worth, but experts are saying that a crash is inevitable. So how do you protect your profit, whether you want to sell or rent, if we end up having an economic crash and the real estate market crashes? In this video, I’m going to show one proven way that people have been able to beat economic crashes and real estate crashes and still come out with a great profit.

So that one proven way to ensure your profit is called rent-to-own. It can be rent-to-own, lease-to-own, lease-to-buy, whatever you want to call it. It’s all the same thing. Basically what that is, is you go and you find a tenant-buyer aka someone that says, “Hey, I want to purchase your home, but right now I would like to lease your home, and then in a year or so I will go and get the home financed and purchase it from you.”

So what makes rent-to-own so attractive?

1. You get the monthly cash flow. You get the cash flow every single month just like if it was just a regular rental home.
2. The tenants that you usually put into the home are better tenants because they’re looking at this home not as just a rental, but they’re also looking at it as their future home that they’re going to live in. So whatever holes or any type of damages that they put in the house, they’re literally thinking, “Oh, man, well, this is going to be my house, so let me make sure I don’t mess it up.”
3. You get the upfront nonrefundable, option money. Basically what that means is, let’s say the tenant-buyer says, “Yeah, I want to purchase this home after 12 months and X amount of dollars per month,” so the monthly the cash flow. Let’s say by the end of those 12 months, the tenant-buyer is not able to or does not want to purchase the home. You don’t lose the home, and you also get to keep that non-refundable option money that you received at the beginning of it.

Win Win Real Estate Strategy

So how is this a win for you and for both the seller and tenant-buyer? Most of the time for the tenant-buyer, they’ve gone through either a bankruptcy, a divorce where they’ve had to split their money, foreclosure, or they just had credit problems where they haven’t had good enough credit to be able to get a home from a bank loan or whatever that might be. So you giving a person that, before wouldn’t have been able to purchase a home an opportunity to purchase a home. Also, on your side, the win for you, is you get the monthly cash flow, you get a trustworthy tenant for the most part, and you get that nonrefundable option money at the beginning. And on top of that, most of the time you’re able to get the market value for that house because the tenant is willing to pay a little more just for you to give them the option to purchase the house that nobody else would’ve let them purchase. So it’s a win-win for the tenant-buyer and the seller.

How To Get Started?

So by now, I know you’re probably thinking, “Man, this sounds great, but where do I find a tenant-buyer?” Or if you’re a buyer, “Where do I find a homeowner that’s willing to do something like this?” Super simple. We’re the people to go to! Go to our website NOW Property Investments LLC or give us call at (214) 744-3491, and we can help the two get connected and help you be well on your way to starting this new journey of rent-to-own.