Rent To Own Homes And Passive Income With Paul McAllister & David Pereira
Manage episode 418829459 series 3574924
In this conversation, Paul McAllister and Dave Pereira discuss the concept of rent-to-own investments in real estate. They highlight the mission of Rent to Grow Homes, which is to help deserving families achieve homeownership while providing passive investors with a target annual return of 20%. They emphasize the satisfaction of seeing families succeed and the impact of rent-to-own investments on communities. Not only that, but they also discuss the importance of tenant buyers having an owner mentality and taking pride in their homes. The conversation touches on the geographic focus of rent-to-own investments in Eastern Ontario and the potential for cash flow and appreciation in smaller markets. They mention the challenges of finding lenders who are willing to finance rent-to-own deals and the importance of working with a mortgage broker to navigate the process. The profile of an investor in rent-to-own properties is someone who wants to be passive and not involved in hands-on management. They are looking for a low-maintenance investment with predictable returns. This type of investor is often a first-time investor who would like to get involved in real estate without the risks and responsibilities of traditional buy-and-hold properties. Rent-to-own investments offer a predictable and easy way to make money in real estate, with a promised 20% annual return. The key is to find a good property with no major issues and to have a reliable property management system in place.
- (00:00) - Introduction and Background
- (02:37) - Rent-to-Own: Helping Deserving Families Achieve Homeownership
- (07:23) - Tenant Buyers: An Owner Mentality
- (13:26) - Eastern Ontario: A Prime Market for Rent-to-Own Investments
- (20:29) - The Predictability of Rent-to-Own Investments
- (21:52) - The Importance of Home Inspections in Rent-to-Own
- (22:48) - Rent-to-Own Investing: A Strategic Mindset
- (27:16) - Building a Portfolio for Your Desired Lifestyle
- (29:14) - Expanding into Different Markets for Maximum Opportunities
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Takeaways
- Rent-to-own investments can help deserving families achieve homeownership while providing passive investors with a target annual return of 20%.
- Rent-to-own investments have a positive impact on communities and allow investors to make a difference in people's lives.
- Tenant buyers in rent-to-own agreements have an owner mentality and take pride in their homes, leading to better maintenance and care.
- Eastern Ontario is a favourable market for rent-to-own investments due to reasonable home prices, potential for cash flow, and opportunities for appreciation.
- Finding lenders who are willing to finance rent-to-own deals can be challenging, but working with a mortgage broker can help navigate the process. Investors in rent-to-own properties are looking for a passive investment with predictable returns.
- This type of investment appeals to first-time investors who want to get involved in real estate without the risks and responsibilities of traditional buy-and-hold properties.
- Rent-to-own investments offer a promised 20% annual return, making it an attractive option for investors.
- Finding a good property with no major issues and having a reliable property management system in place are key to success in rent-to-own investments.
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