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The 2 Types of Rent to Own

by Andrew C. MacDonald on July 11, 2011

158x365Call it rent to own, lease to own, lease options, or whatever you like. The strategy has been gaining popularity thanks to the numerous benefits of rent to own for each party in the transaction.

There are two fundamental approaches to putting these deals together; the tenant first approach or the property first approach. There are many investors using each strategy and each has its own advantages and disadvantages.

Tenant First Rent to Own

As implied by the name, the first step in the tenant first strategy is to find a qualified tenant-buyer who is going to rent to own a property and intends to buy it out at the end of the lease term.

Property First Rent to Own

Again as the name implies, property first rent to own means you start out with a property and then find a tenant-buyer.

Continue readingThe Two Types of Rent to Own: Advantages & Disadvantages on my blog at BiggerPockets to learn more about each type of rent to own as well as the pros and cons of each.

Creative Commons License photo credit: House of Joy Photos

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