Gene 0 Report post Posted December 17, 2004 Has anyone seen the latest issue of Fortune Magazine? It is actually a special issue dated December 27, 2004 (Investors Guide 2005). Well, there is a nice article on real estate investing called, "How Real People Get Rich". Within the article is a sub article called "The Rent-to-Own Strategists". It basically describes exactly what we do. Michael, You better get the printing press humming. A whole new group of naked newbie’s will be knocking on your door. Gene Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 17, 2004 Thanks for the heads up, Gene. I'll have to look into that.You better get the printing press humming. A whole new group of naked newbie’s will be knocking on your door. New meat... Share this post Link to post Share on other sites
-Tony- 0 Report post Posted December 18, 2004 Hmmm might get a copy and one of the article in ws journal. Put those to work for me as well. Share this post Link to post Share on other sites
Sold ! 0 Report post Posted December 22, 2004 Good article. here's the excerpt about RTO: The Rent-to-Own StrategistsHans and Janice van der Kolk know the value of doing one thing in real estate investing and doing it well. Ten years ago 44-year-old Hans, the CEO and primary owner of a building-products manufacturer in Palmetto, Fla., met a real estate investor who told him about a potentially lucrative strategy. It was this: Buy a house, fix it up, rent it to a tenant—typically one who is trying to clean up his credit—and give that tenant the option to buy the house at a specified price in a certain time period. The rent-to-own tenant agrees to maintain the house, so expenses are minimal. The van der Kolks were game to try it. In 1998, with $14,000 from a line of credit on their home, they bought a $65,000, three-bedroom concrete-block home in Bradenton that had been a foreclosure (they found it on the website of the U.S. Department of Housing and Urban Development). Over the next four weeks they spent an additional $3,000 and tons of sweat equity filling four dumpsters with debris, putting three coats of paint on every wall and cabinet, laying tiles in the kitchen and carpet everywhere else, and installing new brass knobs on each door and cupboard. They then took out an ad in the local paper offering the house for a 48-month lease ($925 a month) with an option to buy for $92,000 at any time before the end of the lease. (They charged $1,500 up front for that option.) Of the $925 per month rent, the van der Kolks would put $100 aside toward the tenant's down payment. If the tenant never wound up buying, the couple would keep that money. A dozen renters were interested—and the van der Kolks also got offers to buy the place outright for $85,000. "We were tempted by the cash," says Hans. "But there was more money to be made the other way." Here's why. Had they taken the cash offer, they would have made roughly $17,000 (before taxes). With lease-purchase, they'd get about $20,000 more. If the tenant couldn't manage to clean up his credit enough to buy at the end of the lease, they'd just start the process again with a new tenant. So far the van der Kolks have completed four lease-purchase deals, clearing about $30,000 to $40,000 per property, says Hans. It would have been even more had they anticipated the rapid housing appreciation of the past few years. What about investing in the stock market? This family doesn't. "I cannot tell you what's going to happen in my own company next year," explains Hans. "Why would I gamble on a company that I don't control?" Who could that investor have been? MC, do you know these people? :xwink: Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 23, 2004 C'mon, Rich, you're not buying that story, are you? I thought everyone knew this stuff doesn't work. I mean, van der Kolk? Couldn't the author have made up a more mainstream name? :xwink: Share this post Link to post Share on other sites
Sold ! 0 Report post Posted December 23, 2004 As my Grandma always told me, " silence means consent". :xcool: MC, since you didn't directly answer the question, I am assuming they are proteges of yours??? No mention in the article? Ungrateful so-and-so's ! :xevil: Cool strategy, though.....they buy it themselves and LO it over and over and over again. Not a bad goal to shoot for once the CA and LO machine gets a rollin', gang ! HAPPY HOLIDAYS TO ALL !! THANKS FOR AN INSPIRING 2004. I plan on putting my REI into Hyper drive at the first of the year. I admit I have been slacking due to lack of available time towards the end of the year. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 23, 2004 I admit I have been slacking due to lack of available time towards the end of the year.Rich, it's a busy time for all of us. It comes down to prioritizing. Share this post Link to post Share on other sites
Sold ! 0 Report post Posted December 23, 2004 I agree. REI HAD TO take a backseat for a while this month. But, I was encouraged by the responses I was getting on the phone before that and I am ready to hit the ground running in 2005. Got new cards and am ordering signs for the truck. Got fliers printed and a plan to distribute them. Very encouraged by the successes posted on these boards, too. I will have my first deal by February. That's my goal. Now, it's time to work backwards and make a plan to accomplish it ! :xbiggrin: Thanks again, everybody. Merry Christmas ! Share this post Link to post Share on other sites
