00:00 Speaker 1 Foreign.

00:04 Speaker 2 To the real estate investing morning show with

your hosts, Wayne and Gabby.

00:15 Speaker 3 Hey, good morning, real estate investors.

00:17 Speaker 4 Good morning.

00:18 Speaker 3 Oh, boy, oh, boy.

Today's topic, we're going

to be getting into 10 benefits offering rent to own.

You know rent own.

00:28 Speaker 4 Yeah, I do.

00:29 Speaker 3 We're gonna offer.

We're gonna talk about

10.

00:32 Speaker 4 We're gonna offer you a rent to own.

00:35 Speaker 3 We're gonna.

We're gonna talk about 10 benefits offering rent to own for your tenants.

I've seen a few people asking about rent to own lately.

Normally when I see people asking about rent to own in public groups, I instantly get really scared.

I

was gonna say shut the hell up.

00:56 Speaker 1 Oh.

00:58 Speaker 3 Rent to own is one of those.

It's one of those ones that people think that, it sounds simple enough.

I could do that.

I'll just figure out a price, charge them a little extra, you know, figure out a price I'm gonna sell it to them for and then they could buy it later on.

It's not that hard.

Well, it's a little bit complicated, though.

And so normally when I see stuff like that, I'm just like, no, I'm not going to help this person.

That's one person that I will not help because they need to go take a course first.

It's one of those ones.

You got to take a course.

If you don't take a course,

you're not going to understand it fully.

01:36 Speaker 3 And if you don't understand it fully, what's going to end up happening is you're going to screw somebody over, really honestly.

It's what ends up happening.

There's so many little technicalities with rent to own, and you just got to make sure that you have everything set up properly.

Because if you don't have it set up properly, it's not you that loses.

In fact, you're actually going to win.

The landlord always wins in those situations.

The problem is that if you don't set it up properly, the tenant is going to lose

because the tenants isn't set up for success.

They're not set up to actually.

02:11 Speaker 4 And they're counting on you to know and to, to coach them through.

02:17 Speaker 3 They need you to set it up properly in order for them to get a mortgage.

What I was going to say.

And like you said, yeah,

like they're.

02:24 Speaker 4 Counting on you to explain it to them.

How does

this work?

Yeah, do I qualify?

Is this something that would work for me?

02:31 Speaker 3 So many tenant buyers, that's what you call the person who's on the buying side of it, the tenant.

So many tenant buyers, they.

They just don't know how it works.

I've had so many people like, be like, okay, so you're going to give me the mortgage?

Like, no, I'm not going to give you a mortgage.

And they're like, well, who's going to give me the mortgage?

Well, you're going to get one from a bank.

No, I can't get one from a bank.

That's why I'm here.

Yeah, I understand.

But what we're going to do is we're going to help you get to a position where you can go to a bank.

Oh, okay.

Well, that's not how I thought it was.

So you just got to understand that

most people don't understand how this works.

03:07 Speaker 3 So they're relying on you to have everything done properly so that if they complete all the necessary steps that you recommend to them or you guide them through that, they will be able to go to their broker and they will be able to get a mortgage afterwards.

I say all this because normally, like I said, normally I will not respond to questions online about this because I don't want to give someone a little bit of information that gives them a little bit more confidence to go and do this if they don't have the right education.

But today, what we're going to be talking about is not all the little ins and outs and technicalities of rent to own.

What I want to share with you guys, what Gabby and I are going to share is

the benefits offering it to tenants.

03:47 Speaker 3 The benefits offering it because as an investor, it is a terrific business.

It is a terrific offering that has tons and tons of advantages for you as an investor that's going to get you more profits, higher cash flow, lower risk, and we're going to share those benefits and hopefully it inspires a lot more people to go and get the right education on rent to own and maybe offer it as part of their business, maybe add a little subsidiary of your little rental business that helps families into homeownership.

I'm really looking forward to getting into that.

We're broadcasting the show live as we do every weekday morning

at 6:00am Mountain time every weekday.

And we broadcast the show from Edmonton, Alberta.

What's

the weather looking like in Edmonton today?

04:37 Speaker 4 The weather today will be

25 degrees and mainly sunny.

It is currently 10 degrees and clear.

04:43 Speaker 3

Thank you so much.

04:44 Speaker 1 Thanks.

Heavy.

04:45 Speaker 3 Really looking forward,

is this a done deal now that Everly will be coming to recon?

04:51 Speaker 4 Oh, yeah.

Yeah, she's coming to recon.

She's.

She's on the REI Masters team

and she's.

She's going to be working and she'll.

05:00 Speaker 3 Be performing the

weather as well.

05:02 Speaker 4 Yeah, she's going to be on stage doing the

weather for the live real estate investing morning.

05:08 Speaker 3 What's our show called?

Hang on just a second.

What's our show called?

How many episodes have we done now?

Hang on, let me just.

Let me just check.

How many episodes?

That.

10,

15 episodes.

And you don't know what the show.

05:21 Speaker 4 I suddenly forgot

what our show is called.

05:25 Speaker 3 Sorry, you were saying?

05:27 Speaker 4 I don't know if I can come back from that.

I don't know if I

can get regather my thoughts.

05:32 Speaker 3 Oh, my God.

05:33 Speaker 4 The real estate investing morning show podcast.

She's going to be doing the weather live as

we do the show live on the recon stage.

05:42 Speaker 3 All right.

05:43 Speaker 1 Yeah.

05:44 Speaker 3 All right.

Anyways.

Yeah, really looking forward to that.

That's coming up on September 6th and 7th.

It's getting close, actually.

Getting really close.

I gotta start getting my ducks in a row.

Oh, gosh.

Less than two weeks.

05:56 Speaker 1 Really?

05:57 Speaker 3 Wait, no.

One to two and a half

weeks.

Sorry.

Less than three weeks.

Okay, my bad.

06:03 Speaker 1 Okay.

06:04 Speaker 4 Okay.

06:08 Speaker 3 Well, here's the deal.

You got something.

06:13 Speaker 4 Oh, I was just going to say I know that this.

I know that this Rent to Own subject is.

Is for later.

So I don't want to get into it, but I do.

When we, when we start the subject, can I tell you

what I thought Rent to Own was before I was into real estate investing.

06:30 Speaker 3 Okay.

This should be a fun exercise because.

Yeah, I like this idea.

It.

I like hump.

It's going to humble us a little bit.

And I also want people to understand that if you don't understand what Rent to Own is, it's

completely okay.

06:45 Speaker 4 That's totally fine.

06:46 Speaker 3 You just don't know

what you don't know.

06:47 Speaker 4 Haven't learned yet.

06:48 Speaker 3 I like that.

I like.

I like people knowing that.

The fact that nobody knows until they

know.

06:55 Speaker 1 Yeah.

06:58 Speaker 3 There'S a lot of.

Yeah.

I.

Sometimes I look back and I think about some situations where I'm like.

Or some things that I thought I knew what it was and then I found out what it

was and I was like, oh, man, I clearly didn't know what it was.

07:08 Speaker 1 Yeah, right.

07:09 Speaker 3 Okay, so what did you think Rent to

Own was when.

When you didn't know what it was?

07:13 Speaker 4 Okay, so I remember when I first moved to Alberta, to Edmonton.

I remember back then it was like during an oil boom.

And things are crazy, but I remember seeing these

Rent to own signs everywhere.

07:31 Speaker 3 Really?

07:32 Speaker 4 Yeah, it was really weird.

And like, I don't know if it was because people were making loads of money but like, maybe they couldn't qualify for mortgages or something.

I don't know.

I don't know what the opportunity would have been back then.

Like, like why it would have been so out there.

But just like you would see like how for sale by owner signs there would be like Rent to own signs in yards and.

07:55 Speaker 3 Wow.

07:55 Speaker 1 Yeah.

07:56 Speaker 4 And so it was like this thing that I didn't.

I had never really heard of it before.

You know, I was young, I was in my early 20s.

Like I had never heard of rent to own before moving here to Edmonton.

And so seeing these signs.

So of course I formulated my own idea of what that would be like.

I didn't have any education, I didn't have anybody telling me what it was.

And so my assumption was that.

And remember I was renting at this time too.

I was a renter myself.

So I was like, oh, what is this?

Like I could rent and

then I could own it.

08:28 Speaker 3 Like, why am I paying rent?

Yeah,

I could be owning a home.

08:32 Speaker 1 Yeah.

08:32 Speaker 4 So my.

08:32 Speaker 3 Towards a home.

08:33 Speaker 4 So my assumption was that.

And remember this is what your tenant is going to think if they do aren't familiar with it.

Okay.

So.

So if you're thinking about offering this, think like remember that this might be what your tenant buyer possibly thinks it is when they contact you.

08:49 Speaker 3 Right.

08:50 Speaker 4 So I thought that I would enter into a rental lease agreement and you know, back then rents were pretty low.

So say I was paying, you know, 1200 bucks for rent.

I thought that I would just pay 1200 bucks and every month that 1200 bucks would go towards the $300,000 purchase

until 300 months from now I would own the property.

09:15 Speaker 3 Oh, wow.

09:16 Speaker 4 Yeah, so I just literally thought that your rent would be just paying down that much of the cost of the house every single month.

And I was like, okay.

I'm like, it would take a while.

You know, 300 months is

how many years?

I don't know.

09:32 Speaker 3 25 ish?

09:33 Speaker 4 25 ish.

So I hadn't gotten that far in my thought process.

I hadn't figured out, you know, how long that was actually going to take.

But I was like, oh cool.

Instead of my rent just being rent, I could actually, it could be going

towards, you know, paying 1200 bucks towards a house each year.

09:50 Speaker 1 Yeah.

09:50 Speaker 4 So that's what I thought.

Rent Own was.

09:52 Speaker 3 How

does that make you feel about it?

09:55 Speaker 4 Doesn't make me feel anything.

I just had no idea.

I formulated my, it's called Rent to own.

I, I

figured that's what it was.

10:02 Speaker 3 Yeah.

Why am I just paying it

into rent?

Shouldn't all of it go into owning?

10:07 Speaker 1 Yeah.

10:07 Speaker 3 Or like paying it off?

10:08 Speaker 1 Yeah.

10:09 Speaker 3 It just goes to show that like nobody, well, you're just one person.

But I, I had similar thoughts.

I had like what is it?

Like half of it goes towards it or like you know how much of my rent goes towards it and you know, how long before the house is mine.

Nobody really knows shit about shit until they

like, until they do it right.

10:29 Speaker 1 Yeah.

10:30 Speaker 3 Especially 20 year olds.

You know what I mean?

Like, you think that you're old enough.

No offense to the 20 year old listeners, but like I feel like they're a little

smarter.

10:38 Speaker 4 Business smarter these days.

10:39 Speaker 3 Yeah, yeah, for sure.

But like I remember a lot of things that I thought that I, that I understood back when I was 20 and I was like, damn, I didn't realize how

dumb I was.

No offense to you.

10:50 Speaker 4 Just haven't had life experience

yet.

10:52 Speaker 3 Yeah.

And there's lots of 30 year olds that don't even know how to like how owning a home works or how a mortgage works or anything.

You know what I mean?

There's, there's adults that think that like, oh, I'm paying off your mortgage.

I'm.

My rent is paying off your mortgage.

That's not fair.

I just sit here and I'm renting for 10 years and I paid off a

third of your mortgage.

11:13 Speaker 1 That's.

11:14 Speaker 3 I should get some part of ownership of this.

I should get something.

Meanwhile, they don't understand that we're financing this.

You know what I mean?

They just think that we bought it all cash and that, you know, now they paid off a third of it and they deserve more.

It's that you're right.

And you do have to understand that if you are going to be offering a service like this, it's good to have a general understanding of what their understanding is or lack of understanding.

Because if you're trying to market it, if you're trying to pitch it, you know, you're looking at it through the lens of what you know, it is and they don't see it that way.

11:58 Speaker 1 Yeah.

11:58 Speaker 4 So there is a, there's a question here

that says is lease option the same as rent to own?

12:04 Speaker 3 Yeah,

we'll get to that after the break.

12:05 Speaker 4 Okay, sounds Good.

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12:36 Speaker 5 The Real estate

investor conference September 6th and 7th here in Edmonton.

12:43 Speaker 3 Galvin, I'm stoked.

12:45 Speaker 5 I cannot wait.

12:46 Speaker 3 Wayne.

12:46 Speaker 5 There is going to be so much opportunity happening in this room and I think they're even

giving you a mic and doing a live podcast.

12:54 Speaker 3 Yeah, we're doing the live podcast in person.

You can come and see Gabby and myself in our pajamas drinking coffee.

And like I said, I mean, I'm stoked for it.

It's going

to be a blast.

13:04 Speaker 5 And we're serving waffles.

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13:26 Speaker 3 See you guys there.

13:30 Speaker 4 Okay, we're back.

13:31 Speaker 3 Yeah, sorry about that.

We had to take a commercial break and you were

getting into.

13:35 Speaker 4 Yeah, sorry.

I was like, no, you're like, hold on.

13:38 Speaker 3 Gabby has her cues of like, wrap it up.

And I have

mine.

I'm like, we need to take a break.

Gabby starts going down.

13:44 Speaker 4 I wasn't, listen, I wasn't looking at him.

13:46 Speaker 3 There's a great

question that came in the live chat here in the live show.

13:50 Speaker 1

Yeah.

13:50 Speaker 4 So it says, is lease option the same as rent to

own?

13:55 Speaker 3 Yes, yes, same.

Spelled different.

In a way.

I've seen it.

Really?

It's.

I almost wanted to say yes.

I mean, technically it is.

14:08 Speaker 4 Technically, yes.

14:09 Speaker 3 Technically, yes.

But then again, there's also different ways that people form rent own with different types of contracts.

And I've kind of like.

And I don't know if this is everybody or if it's just me, but I kind of like separate lease options and rent to own as two different things.

I use the term rent to own because that's what everybody knows.

That's the most common.

That's what your tenant knows, that's what your grandma knows.

It's.

It's almost like the brand of it.

You know what I mean?

It's the Q tip of Rent to Own.

It's the Kleenex of rent own or lease options.

Whatever you get.

You get

my point.

14:42 Speaker 1 Yeah.

14:46 Speaker 3 Rent to own is a lease with an option meaning that you're renting it with the option to purchase it.

Right.

So it's more technical to call it lease options.

Rent to own is kind of a gimmicky name, but I've also seen like, people create rent to own contracts where it's not like a lease option, it's more like what were talking about earlier, where you pay the rent and a portion of it goes towards your purchase.

Now I don't like structuring my rent to own that way for technical reasons because it's seen as more of a deposit and not more of as an option fee.

But now I'm getting too technical.

This is why you need to take a course.

Just think

about it.

15:25 Speaker 3 If you set this up incorrectly and you said a portion of your rent goes towards the purchase that is non refundable, whereas, sorry, it is refundable.

It is refundable in the event that they don't follow through on the purchase.

But if you did a lease option where it was at least plus an option fee, the option fees are non refundable if they don't purchase the property.

Very different, very technical.

And this is what I mean.

You need to really understand the ins and outs of Rent to Own before you do it because you can really

screw either yourself over or screw over your tenant.

15:58 Speaker 1 Yeah.

15:59 Speaker 3 So again, I'm not going to get.

16:00 Speaker 4 Into that stuff, but yes, they are.

They're the same.

But that's what you're familiar with if you've learned

lease option.

Yes, that is a rental.

16:06 Speaker 3 Yeah, absolutely.

16:07 Speaker 1

Yeah.

16:08 Speaker 3 I tend to call it lease option more, but you know,

for the sake of a title in a podcast, I call it rental.

16:16 Speaker 4 Wayne, before we really dove into that subject, I did have something that I

wanted to cover today if we have a little bit of time.

16:24 Speaker 3

Oh, wow.

16:25 Speaker 4 Just.

Is that okay?

16:27 Speaker 3 Yeah.

16:28 Speaker 4 Okay, sorry.

16:29 Speaker 3 Let me just get comfortable.

16:30 Speaker 4 I wasn't sure if you were gonna like dive right in or if you needed me

to, if I don't know.

16:35 Speaker 3 Anyway, this chair is not comfy today.

I gotta find a better.

Hang on.

I need a.

I need a stool or

something.

16:41 Speaker 4 Oh, you get comfy.

I have something that is, I guess, a little bit more of like a public service announcement than it is like, I

want to educate you on something.

16:51 Speaker 3 Oh my God, is this gonna.

16:53 Speaker 4 And it's not like a gabby rant no, no, it's not.

And it's also not like it's not like a specific question has come in.

But there's been a series of comments made in the past several weeks where the same kind of subject keeps coming up where clarification is, has been needed over and over again.

And so I know that this isn't just isolated thought processes, that this is something that people struggle to understand.

And I want to clear something up for every single person who is a landlord.

I guess specifically I will be talking about a landlord in Alberta because I don't know how this, how exactly this differs in other provinces.

17:37 Speaker 4 But if you are a landlord in Alberta, you really in depth need to understand the difference between a fixed term lease and a month to month lease and all of the little intricacies that surround it.

Because I'll give you a couple examples of some misconceptions that I've heard in the last couple of weeks.

I have two that are really standing out in my mind, but that I know there's more.

I know that this kind of stuff comes up all the time.

So the first one that came up was in regards to when selling a property that has tenants in it and the kind of situation around how much notice do I need

to give them to vacate?

And that sort of thing.

18:24 Speaker 4 Because in the Residential Tenancy Agreement or act, sorry, the rta, there is a little bit of information in there that isn't super clear about what it's talking about.

And people instantly think that it is in regards to fixed term leases.

It's so easy.

It's so easy.

I'm not faulting you guys.

It is really easy to not to just bypass this and be like, oh, okay, that's fixed term.

But if you look closely at the title of the section, it's actually talking about fixed term lease or sorry, month to month leases.

Periodic.

Yes, thank you.

That's the technical term that they use.

It's talking about periodic leases and it talks about how, you know, like giving rent increases requires 90 days notice or you know, in fixed term leases it says you don't

need to give notice if you're ending the tenancy.

19:22 Speaker 4 So anyways, people just see all of these random statements about like notice given or that you don't need to give notice, it just ends and they mix them all up.

And I really want to stress that if you are a landlord in Alberta, you need to pull out that rta.

You need to print it out or pull it up on your computer and you need thoroughly go through it and make sure that you understand it.

And if anything is confusing you need to come to the show and ask for clarification.

Because there was a situation where somebody was stating that they were purchasing a property or, sorry, they were selling a property that was tenanted and that they were going to give their tenant 90 days notice that they needed to vacate because

they wanted to sell their property.

20:16 Speaker 4 Oh, and you can't just do that.

You can't just, you can't just get a tenant to leave because you're selling a property when they're month to month or when they're fixed term.

But this specifically was because the tenant is month to month.

I'm going to give them their 90

days notice to vacate.

20:32 Speaker 1 Yeah.

20:33 Speaker 4 And you can't do that.

There's very spec.

There's only like really two reasons why you could ask a

tenant to.

20:40 Speaker 3 Technically.

20:40 Speaker 1 Yeah.

20:40 Speaker 4 Why you

could ask a periodic tenant to leave.

So you need to understand that.

20:44 Speaker 1 Yeah.

20:45 Speaker 4 And then there was another one where what was the situation?

Oh my God.

It's escaping me now.

But anyways, it's these little increase.

No, it wasn't a rent increase.

But that actually, that is another common one.

They think like, oh, I just need to give or you know, like something that we see a lot is the assumption when you're in a fixed term lease, they'll be like, oh, I need to give 90 days notice of a rent increase.

Yeah, well, you don't.

You could just give an increase at the end of the one year of the end of the lease.

But anyways, there's all these little things that I'm seeing.

People are getting mixed up and not fully understanding and it gets you in trouble.

And I see it on the landlord pages all the time.

21:30 Speaker 4 People getting in trouble because they didn't understand that they were following the rules for either periodic when they were fixed or following the fixed rules when they were periodic.

And I don't want that to be you.

You guys are here because you want to do it right.

You want to learn, you're interested in real estate investing.

Please.

If you are becoming a landlord, if you are a landlord and you thought you knew everything, but you haven't thoroughly gone through and looked at those differences.

Do it today.

Do it this week.

Do it this weekend.

22:00 Speaker 3 Right on.

22:01 Speaker 4 That's my little public service announcement.

Because I'm seeing lots of people make stupid

mistakes.

22:06 Speaker 3 Oh, it's.

22:08 Speaker 4 Sorry, the mistakes aren't stupid.

It

could have been avoided.

22:11 Speaker 3 Yeah, yeah, they definitely could have been avoided.

Goes back to what we said about you don't know.

You don't know, right?

22:17 Speaker 1 Yeah.

22:18 Speaker 3 And I don't even know.

Like, other than you just saying that, I don't know how anyone could have, could figure that out on

their own because it is not easy to read.

22:30 Speaker 4 And that's the thing is that I feel like, you know, you read it and you're like, oh, okay, yeah, I understand it.

It says it right here.

Or I referenced it before

I did it and look, it says it right here.

22:39 Speaker 3 Or like,

you want to know the.

22:40 Speaker 4 Answer right above it says periodic.

It

doesn't say.

22:43 Speaker 3 That's the thing is, I don't blame them.

I blame the people that wrote the act.

Because when you're going to look for the answer and you're like scrolling through or you hit a control F for like, you know,

find.

It looks.

22:55 Speaker 4 You think you find your section, you're like, okay,

that's what it says.

22:58 Speaker 3 It looks like you found your answer.

But it's not, it's so frustrating.

And then you'll see the, the landlord Facebook groups or the tenant Facebook groups just like, people arguing over it.

It's, it is, it's.

It's very frustrating.

But, you know, thankfully you guys are here and you're.

And you're getting good quality, you know, guidance from us you can rely on.

I've seen some really smart people think, like, believe that it's the opposite.

You know what I mean?

And it's so hard to even in a world where you think that, you know, information is.

It's just so easily accessible now.

It's still.

You see people messing up and stuff like that.

What I was going to say was that, you know, I firmly believe that 75% of the world's landlords, or let's just say Canada's landlords are amateurs.

23:51 Speaker 1 Yeah.

23:52 Speaker 3 And that's being nice.

75% of landlords don't know what they're doing and they're not doing everything properly by the book.

Whether that just be ignorance or whether that just be a lack of understanding or education and guidance, which is really unfortunate because there's a lot of really good people out there that are renting.

There's a lot of really good tenants.

Now, I would say that 100% of tenants have no clue what they're responsible for or what they're entitled to,

because why would they ever read the act?

24:22 Speaker 1 Yeah.

24:23 Speaker 3 You know, What?

I mean, so 100% of the tenants don't know what they're entitled to or responsible for, and 75% of landlords don't know what they're entitled to or what they're responsible for.

And what percentage of the population is renting.

Isn't that crazy how it's just like so unorganized?

It's, it's.

Yeah, it just makes total sense why

you hear so many bad stories all the time.

24:54 Speaker 1 Yeah.

24:54 Speaker 4 Actually, what I would implore you to do is just based on knowing that it can be misunderstood.

Now, you've heard, you've heard this episode.

You've heard us say it.

Now pull up the rta, the tenant, the Residential Tenancies act, and go through it with a different set of eyes and be like, what were they talking about?

They said that I might misunderstand this and I need to keep an eye out for that periodic.

So, you know, like, what were they referring to?

And go through it with that new idea, that new set, that new set of eyes and be like, oh, okay, I see how I might have missed this before.

I might have

misinterpreted this.

25:34 Speaker 3 Yeah.

25:34 Speaker 1 Yeah.

25:35 Speaker 4 So Patrick

had a comment.

25:37 Speaker 1 Yeah.

25:37 Speaker 4 Patrick says it is absolutely worth printing the RTA and reading it with a cup of coffee, a pen and

a highlighter.

Yeah, absolutely.

25:46 Speaker 3 Yeah.

I know it sounds kind of nerdy.

Yeah, we did it.

25:51 Speaker 1 Yeah.

25:52 Speaker 4 And.

And, and it's funny because, you know, we don't deal with month to month.

We know that it's

bad.

25:58 Speaker 3 And so we have one right now.

26:00 Speaker 1 Yeah.

26:00 Speaker 4 We just bought a property.

26:01 Speaker 3 We bought a property

that has one.

26:02 Speaker 1 Yeah.

26:03 Speaker 4 But we are, we're so in, like, we run our business that no, we are not going to have monthends.

We're not going to let that happen.

We're not going to offer it that we can get so in our own lane of fixed term leases that sometimes a periodic question will come up and I'll second guess myself.

I'll be like, wait a minute, I need to like, focus, regroup.

Because I can misspeak on it sometimes if I'm not like, if I haven't like, prepared and gotten myself in that space because I'm like, I won't touch it with a ten foot pole.

Except sometimes if Wayne forces me to and he buys property that has enough to make, but that's neither here.

26:41 Speaker 3 They can't hear the last four seconds.

You were.

26:44 Speaker 4

I was trailing off because I was.

26:46 Speaker 3 Pretty sure a dog.

A dog four miles away heard you.

But you have to talk louder into the microphone.

26:51 Speaker 4 I was being mean to you, that's why I trailed off.

26:54 Speaker 3 I thanks anyways.

Thank you for that psa and hopefully, you know, that inspires some people to go and print it out today and have a look and understand the differences between fixed and periodic tendencies in Alberta and also in their own individual province.

Keep in mind that every province has their own Residential Tenancies act.

And they are all different, right?

Very different.

What I'd like to do is get back into today's main topic, which is the 10 benefits offering rent to own for your

tenants.

27:25 Speaker 4 Let's do it.

27:27 Speaker 3 Well, benefits for you offering

it.

27:31 Speaker 4 To tenants to you, the landlord.

27:33 Speaker 3 Yes.

And maybe later this week if we have some time, maybe we'll go over some benefits for tenants as well.

It can be a win if done properly.

But we're going

to take a quick little commercial break and we'll come back.

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29:41 Speaker 3 Okay, thank you again for

sharing that.

That was great.

29:47 Speaker 4 Yeah, no problem.

As you guys might realize, I deal a lot with our, with the tenant side of our business, and it lights me up whenever there's, like, tenant questions and that sort of stuff that

comes through.

It's my expertise.

It's where I thrive.

30:01 Speaker 3 Yeah, it's.

You guys.

Can.

You can tell where, like, where Gabby's side of the business is, like, what her expertise is and what Wayne's is?

I mean, I know the RTA inside and out, but that's Gabby's side of the business.

She manages all of our rental portfolio and our tenant stuff and whatnot.

She.

She.

That's.

That's her jam.

Like, that's what she's been doing for so long now.

And, and I.

Yeah, it's.

It's super

valuable that you can bring that to the show.

30:28 Speaker 4 Yeah, we actually had somebody who's been very interested in joining the mentorship program, and they were going to.

They were kind of in, like, this waiting pattern.

I don't know exactly what they're waiting for, but they had a, A tenant issue come up, like, something that they're really going to need help walking through.

And I got a message just saying, like, okay, like, should I just join now?

I need help.

Like, can you handle hold me through this?

And I said, yes, absolutely.

So that was just this morning.

30:59 Speaker 3 Oh, really?

30:59 Speaker 1 Yeah.

30:59 Speaker 3 Oh, okay.

So we'll have to talk about who that is.

I mean, they probably know who, but

I mean, that's.

31:04 Speaker 1 Yes.

31:05 Speaker 3 I wish it were under

better circumstances.

31:07 Speaker 4 Yeah, for sure.

But I mean, it's.

31:09 Speaker 1

Yeah.

31:09 Speaker 4 And like, and by.

I'm not saying, oh, if you have a tenant issue, you know, join the program, help you, like, bring your questions here

as well.

31:17 Speaker 3 Yeah, we have free coaching on the show every single

morning.

31:19 Speaker 4 Yeah, we.

And I get lit up when I get to talk about tenant stuff, so bring your questions here.

But yeah, if you need a little bit more and you want to take it further and you also want to learn the strategies and really setting yourself up for success in the future, then, you

know, joining the program is available as well.

31:38 Speaker 3 I really wish that we didn't spend as much time, you know, in our mentorship program with our students on this kind of stuff.

But it's also really good.

I mean, it's part of

the journey.

It's inevitable that you're going to have issues with people.

31:51 Speaker 1

Right.

31:51 Speaker 3 It's part of your business.

But you know, we spent so many coaching sessions like going through how to fill out the RTDRs paperwork, how to structure your emails to get the outcomes that you want with your tenants.

You know what I mean, what to say, what not to say, those types of things.

And we can really dive deep in it with you to make sure that you get the best possible outcomes and you also, you know, get as much money back that you're entitled to as possible and just kind of reduce those risks.

So whoever that person is, I'm sorry to hear that you are going through this, but I'm also very happy to hear that you're joining the program and looking forward to getting to

that.

We actually had somebody else join the program yesterday too.

32:29 Speaker 3 Oh, we have to hang on a second.

Congratulations to Kyla and Joseph for joining the

REI Master's Mentorship program yesterday.

32:39 Speaker 4 Big congratulations.

We're really excited for you

guys.

32:41 Speaker 1 Yeah.

32:44 Speaker 3 Yeah, I met.

Met Kyla a couple

weeks ago in Red Deer.

32:48 Speaker 4 Oh, did you?

32:48 Speaker 3 Yeah, at Amanda's Red Deer Real Estate Investing and yeah, connected yesterday.

And this is what they've been looking for.

So I'm really excited for them as well.

They're going to

join in on our coaching session tonight.

33:00 Speaker 1 Love it.

33:01 Speaker 3 Okay.

Okay.

I'm just taking a peek at the comments section.

I see.

Actually Joseph had more questions about Rent to Own.

You know what, Joseph?

Just save that message and bring that tonight.

Bring it to our coaching session tonight and I will answer that because just I don't want to get too.

This is what I mean.

Like, I want to answer his question here, but the more I, the more questions, technical questions I answer about Rent to Own, the more confident I make people about doing Rent to Own and then the more likely they are to do it without doing a course.

And that just scares the sh.

The poop out of me.

Let me see if I can go a whole episode without swearing.

Just scares the poop out

of me.

Seriously though, it's.

33:53 Speaker 3 The rentone has this horrible stigma because everybody just thinks they can write it on a napkin and then no tenants ever complete it.

I literally saw a message this morning.

Someone was asking about Rent to Own.

Someone commented back and said, why would you even do rent own?

They always fail.

And I was so close to saying, you motherfucker.

The only reason why all of them fail is because the landlords, the owners never get the proper Education to make them actually succeed.

It's so frustrating.

It's not the tenants most of the time.

Most of the time it's not the tenants, it's the landlord setting them up for failure.

They should have never accepted them in the first place because guess what, they

were never going to get approved for a mortgage.

34:41 Speaker 1 Right.

34:43 Speaker 3 Did you set them up with a mortgage broker ahead of time to see if they're actually going to qualify?

You know what I mean?

I know I'm getting into technical stuff, but like, you know what I mean?

Yeah, it's frustrating.

Rent to own is such an amazing strategy for investors.

Honestly, I'm really bummed that I don't see more people offering it because done correctly, lease options, rent, owns, whatever you want to call them can really help a lot of families out.

And it's a really great investment strategy.

It's a really low risk investment strategy that it like talk about goal setting and you know, getting more cash flow, lower risk investments like this is almost numero uno, you know what I mean?

So let's talk about some of those

benefits.

How about 10 to be exact?

35:38 Speaker 4 Sounds good.

35:39 Speaker 3

All right.

35:39 Speaker 4 It's a good number.

35:40 Speaker 3 Number one, you attract long term tenants.

See rent to own agreements.

Often, you know, they run for several years, anywhere from two to three or sometimes as high as five years.

And what that does is that reduces your tenant turnover and your vacancy costs.

You know, one of the hidden expenses that nobody ever talks about with rentals is vacancy costs.

It's actually, I think next to like your furnaces and your roofs and your windows.

Vacancy is one of the highest expenses that nobody ever talks about.

When you have a tenant move out and that unit sits empty for however many months, however many times throughout the duration of you owning that property, that comes at a cost that's $2,000 or a thousand dollars each month of rent that you don't have coming in,

that is an expense.

36:38 Speaker 3 If you own that property for 20 years and that happens seven times at the end of, you know, you do 12 month leases, right?

Seven times.

You have a vacancy of one month and your rent is 2,000, that is $14,000 worth of expenses.

That is two furnaces over a 20 year period.

Yeah, Think about it.

That would be the same as replacing two furnaces over

that 20 year period.

37:06 Speaker 4 And for anyone who is maybe new to investing and is thinking like the market's hot, why are you having vacancies?

Like you should have no problem filling it in a week or two tops.

You just haven't

been around long enough.

It's not always going to be like this.

37:21 Speaker 3 Sometimes tenants move out and they're not as accommodating and like, you know, keeping the place tidy.

Maybe they're messy, maybe they're like, no, that's not a good time.

I homeschool my kids.

Or no, that's not a good time.

I'm in the middle of a course right now.

I can't have people come through the house, even though you can.

Are they going to be welcoming and, you know, and tidy the place up?

Is it even worth showing the unit to a new prospective tenant when the tenants.

That's still in there, it's got the place like a dump.

Is it worth your time going down there?

Right, so it's.

It's not uncommon to have a month or two of vacancy throughout your ownership of a property and over the duration of you

owning that property.

That adds up.

Yeah, it really adds up.

38:06 Speaker 3 And that's a big expense.

But with rent to own, you don't have turnover, you don't

have vacancies because the tenant is staying for years and then purchasing.

38:18 Speaker 1

Right?

Yeah, yeah, absolutely.

38:20 Speaker 4 That's one of the best ones.

It's one

of the.

38:22 Speaker 1 Yeah.

38:23 Speaker 4 Number two would be higher tenant

commitment and care, so.

38:27 Speaker 3 Oh, God, yeah.

Speaking of taking care of

the place.

38:29 Speaker 1 Yeah.

38:30 Speaker 4 Because remember, like, this is now their home.

I mean, while they are just, you know, quote unquote, renting until they

do actually purchase it.

38:38 Speaker 3 Leasing.

38:39 Speaker 4 Yeah.

38:39 Speaker 3

And then purchasing.

38:40 Speaker 1 Yeah.

They, it.

38:42 Speaker 4 They are considering it as their home and so they are taking care of it as if it

was as their home.

38:47 Speaker 1 Yeah.

38:48 Speaker 4 Compared to traditional renters who are, you know, just.

It's not that they're like, oh, this is just a rental.

I'm going to trash it.

But it's like, oh, this, you know, there's just

an extra level of care that comes when it's like pride of ownership.

38:59 Speaker 3 Yeah.

Actually, in fact, you know, normally we do quarterly inspections on our rental property.

So every three months we go in, we change the filters, we, you know, clean the gutters so they need to be cleaned.

We check on, you know, just

regular general maintenance of the property and.

Because that's our responsibility as the owners.

39:20 Speaker 1 Right.

39:20 Speaker 3 But when it's a rent to own, we only go like once every six months because we know that they're taking care of it.

Not to mention the fact that.

I don't know if this is on here.

We'll get into it a little bit later.

But on the list, they're responsible for changing the filters.

So we don't even have to go in there and change the filters, which is an extra bonus.

We'll be sharing in just a little bit here.

So that extra commitment, that extra care means that they're more likely to tidy up.

They're more likely to treat it like their own.

And as well, they're more likely to pay on time.

That commitment is also to paying on time because they know if they don't pay on time, they lose that option, that right to purchase the property.

40:00 Speaker 1 Yeah, yeah.

40:02 Speaker 3 Now, as we're going through this list, I want you to think of all the things that you hate about renting, all the things you hate about being a landlord, and all the things, the risks that you are scared of for renting properties out.

I want you to list them all.

And as you're listening to this list, I want you to see which of these

that we name.

40:20 Speaker 4 Crossed off.

40:21 Speaker 1 Yeah.

40:21 Speaker 3 Will help you cross off the fears that you have on your list.

Okay.

It's a fun little exercise.

All right.

You remember in, like, in math class sometimes where they would have like.

Or in problem solving, they would have like.

They would have, like a picture.

Like, one side they would have all the animals, and then on the other side they would have, like, all the foods.

And then you would draw a line from, like, mouse to cheese or like, cat to milk or like, dog to bone.

You know what I mean?

This is what I want.

I want you guys to have our list, and then I want you to have your list, and then I want you to draw a line for everything that we say, the benefits

of rent to own.

40:59 Speaker 3 I want you to draw to the fear or the risk or the thing that you hate the most about rental property properties.

And you're going to notice that we're going to.

We're going to fix them all.

This is why rent owner is so amazing.

Okay, Number three.

I'm okay.

Are you okay?

Oh, God.

Oh, God.

She choked on her bone.

Okay.

Numeral three.

You can also charge above market rent.

Monthly rent is often higher than typical market rents.

It's.

You can actually charge a premium.

Now.

How much higher on rent?

Not much.

You

know what I mean?

41:42 Speaker 3 Like, you're not going to charge a ridiculous amount more, but if you are, say, in a competitive market and there's lots of other rentals in the area, let's say you've got lots of competition, and typically people might charge a little bit less, $50 less, $100 less, just to get it rented out quickly.

Keep in mind that you are offering an incentive and a premium of the fact that this is also a rent to own a lease option.

So you're going to be able to charge top dollar for your rents.

If your market rent is say 1900 to 2100, don't be surprised if you get 2100 or maybe even 2200 because of the fact that they get the added incentive that this is a lease option.

Right.

I've seen some people.

Now, Gabby was kind of like cocking her

head a little bit me.

42:26 Speaker 3 She's like, you know, Wayne, like you don't charge like ridiculous.

Like, like you're not going to charge over market rent, but there is a premium on that you can charge on rent for this incentive.

And I've seen some people getting very, very good rents specifically because of the fact that

it has this.

42:46 Speaker 1 Yeah, right.

Yeah.

42:49 Speaker 4 The next one

would be that there's like an option fee income that is generated.

42:54 Speaker 3 Okay.

So the option fee is the additional fee that you would charge on top of the rent.

That is the option fee is the consideration for that.

They pay

for the right to buy it at the end for a fixed price.

43:08 Speaker 4 And so that can.

That comes in the form as an upfront fee.

Like, let's call it almost like, imagine it as like a buy in, like towards like

a.

A lot of people use the terms down payment, which.

43:21 Speaker 3 Do

not.

43:22 Speaker 4 Do not, do not.

But it helps visualize, you know what,

like, okay, I'm, I want to back.

43:30 Speaker 3 This is where, this is where you have to be careful with your words, people.

This is why the words are really important with lease options.

Yeah.

So the tenants will typically see this as my.

The sum of all of my option fees can be used towards my down

payments.

43:43 Speaker 1 Yes.

43:44 Speaker 3 Or it can be used towards my deposit.

Deposit.

We don't use the words deposit or down payment because the second you say that, it becomes refundable.

So what they do is they pay an additional fee on top of their rent.

And those fees, the initial fee that they pay up front and then the additional monthly option fees that they pay every month.

Typically what we'll do is we'll structure that to sum up to say, 5% of the purchase price of the property.

So if they do exercise their right to option to purchase the property, they get a mortgage.

They say, yes, we're going to buy this property at the end, then we will credit those option fees towards the purchase.

Right.

And we will write it in the purchase contract as a deposit that we have received.

44:26 Speaker 3 And then that is kind of in their eyes, it's seen as

like, oh, that's my down payment.

44:31 Speaker 1 Yeah.

44:31 Speaker 3 When really.

It's just a credit.

It's a credit towards the purchase.

44:34 Speaker 1 Yeah.

44:34 Speaker 3 So for.

If they're buying the property for $400,000, we're going to credit

$20,000 towards the purchase as a deposit.

44:42 Speaker 1 Yeah.

44:42 Speaker 3 At that time.

So this, the option fees are.

What they are is.

It's what.

The option fees that we're collecting on day one, the initial option, plus the monthly option fees that we're collecting on top of the rent.

That is our future profits today.

44:56 Speaker 1 Yes.

44:57 Speaker 3 So the $20,000 of the $400,000 we're selling the property for, we get today, ahead of time.

We get our future income now.

45:06 Speaker 1 Yeah.

45:07 Speaker 4 And a common misconception is that, like, you need to pull out that $20,000 and like, and.

And basically, like, give it to

them for their down payment.

No, you don't.

It's just.

It's credited.

Yeah.

45:19 Speaker 1 It's a.

45:19 Speaker 4 It's a line on a.

On a piece of

paper that says it's already been received.

45:23 Speaker 3 And that's only, again, only

a credit if they actually exercise their option to purchase.

45:27 Speaker 1 Yeah.

Right.

45:28 Speaker 3 This is.

Again, it's only an option fee.

Right.

It's for the right to buy the property.

And the only way they get those fees credited towards

the purchase is if they actually purchase the property.

45:43 Speaker 1 Okay.

45:44 Speaker 3 Really, really important number five, predetermined sale price.

45:50 Speaker 4 So you lock in that sale price at the beginning, which can protect you against future market drops.

45:56 Speaker 1 Yeah, yeah.

45:58 Speaker 3 And which is a benefit for both parties.

I mean, kind of a bit of a negative for.

For us as the sellers or the owners, because the fact that if the value of the property goes up more than the predetermined price over the two to three years or five years, whatever, then they benefit.

Then they get the benefit of it.

But there needs to

be some form of incentive for the tenants.

46:19 Speaker 1 Right.

46:19 Speaker 3 They're the ones that are taking care of the property.

They're the ones that, you know, we're saving a lot of money, remember, on vacancies and repairs.

Yeah, yeah.

Which we haven't got into yet.

But they're the ones that are, you know, we're getting all the benefits.

They should have some benefit and incentive, too.

So they get to lock in on their price now.

So in a rising market where the prices keep going up and they're, you know, someone would otherwise have to just be saving, be renting, renting, saving, saving, saving until they're eventually in a position where they can qualify for a mortgage or they've accumulated the down payment that they need.

At least with this program, what that we offer, they get to lock in on the price today.

They have a guaranteed price.

47:01 Speaker 1 Right.

47:01 Speaker 3 And that's a big incentive for them.

And additionally, we also know for us the benefit is that

we know how much we're selling this property for in the future.

47:09 Speaker 1

Right.

47:10 Speaker 3 And so the really cool thing is that we can actually now calculate what our exact profits are going to be.

We can calculate what our cash flow is going to be.

You know, the total accumulation of the option fees our mortgage pay down, how much equity we're going to build in, plus how much extra we're selling the property for in the future.

You know, from day one, we know what our prop, what our profit is going to be and what our return

and investment is going to be, which is amazing.

47:34 Speaker 1 Yeah.

47:35 Speaker 3 The next one is reduced vacancy risk.

Now we already explained this.

Tenants are less likely to move out early since they're invested in the path to ownership.

I'll rephrase this one.

You know, it's less likely that they're going to change their mind because they're invested in this.

Yeah, they made it.

A lot of times what they'll do is they'll make an upfront option fee or option payment, which is almost like a commitment fee.

Not really a commitment fee, but it's like, you know, if they put $5,000 in as an upfront option fee, that's how we know these people are

actually going to see it through.

48:17 Speaker 1 Right.

48:17 Speaker 3 Because now they're invested into it, they put some money into it and they're actually going to see it through.

And that helps us know that, okay, these people are actually going to see it through because in a lot of cases, you know, sometimes you'll offer a rent to own or a lease option on a property that you own, which is great, you already own this property.

But most businesses that offer rent to own, they actually will go out and buy a property specifically for their tenant buyer.

So they'll find them on, you know, they'll, you know, they'll have some sort of a lead generation maybe through their website or something like that, or they'll pre qualify tenant buyers and then they'll find out, okay, this tenant buyer needs a two to three

year rent to own.

48:55 Speaker 3 Their mortgage broker says they'll, they only need two years to get their ducks in a row.

They've almost got their down payment saved.

We know exactly what they need to do.

Now what we're going to do is we're going to go out and buy a property that they want.

We're going to lease it to them with the option to purchase in two to three years.

49:11 Speaker 1 Right.

49:11 Speaker 3 Now, would I have normally purchased that property?

Probably not as a rental property?

Probably not, yeah.

Because normally when I buy rental properties, I buy them as a rental.

I buy them because I want to keep them for 10 to 20 years.

This property is probably not the property that I would have normally bought, but it's the property that they want, the want that they want to buy in the future.

So I need to know that they're committed to this and that they're not going to move out in six months from now and

be like, yeah, no, I changed my mind.

49:40 Speaker 1 Right.

49:40 Speaker 3 So that commitment helps me feel confident about buying this property specifically for them.

Because if I take this property back, if they do change their mind, I want to know that I can rent it out or I can sell it and you know what I mean?

And at the very least, just kind of COVID my cover any shortfalls.

So the commitment there is really important.

Yeah, it's a bit of a stronger tenant pool as well.

Like, the people that apply for this are much stronger tenants.

They're more reliable, right?

50:11 Speaker 1 Yeah.

50:11 Speaker 4 I mean, they're motivated tenants who are working towards, like, improving their credit and their finances and they can often be more reliable than the average renter.

I mean, that's not to say that, you know, there aren't renters out there who are also working towards home ownership, but they just don't need help.

Like they're just, you know, saving and improving upon their situation.

But, you know, when you're strictly looking at, you know, the tenant buyer pool,

they are all.

That's what their goal is.

50:41 Speaker 3 Right.

50:42 Speaker 4 And that's what they want.

That's what they're working towards.

They just need a little bit of help.

So you do tend to have a little bit of a higher caliber of people who are looking for that.

Yeah, not all the time.

Sometimes you just have people with the misconception of what rent to own is like we talked about in the beginning.

And maybe they aren't as, you know, savvy or committed, but

yeah, absolutely.

51:01 Speaker 3 It's, it's definitely a numbers game with rent.

51:05 Speaker 1 Oh, yeah.

51:06 Speaker 3 You know, we kind of touched on this a couple times throughout, you know, these previous seven.

But number eight is lower maintenance burden.

And, you know, going back to what I said earlier, it's like it's theirs.

They're, they're more likely to take care of this property.

There, there's far less wear and tear, as if, you know, it were a rental property.

And the other benefit is that even if there was, you know, repairs required or I mentioned furnace filters or I mentioned cleaning the gutters earlier with a rent own, if structured properly, you know, if you structure your, your lease and your option agreement properly like we do, and we can help you with that, you can make it so that they are responsible

for repairs and maintenance.

51:54 Speaker 1 Yeah.

51:55 Speaker 3 And, you know, many landlords, they don't really practice good bookkeeping and they don't really understand this, but there's a lot of extra little expenses that really add up that affect your bottom line with a rental property.

Like furnace filters, for one.

You know, how much are furnace

filters on these new furnaces now?

52:19 Speaker 4 Oh, gosh, a lot.

52:21 Speaker 3 Like 30, 40 bucks in some cases.

52:23 Speaker 4 Like 60, 70 in

some cases.

52:25 Speaker 3 What?

52:25 Speaker 4 Yeah, for the really big ones.

52:27 Speaker 3 Yeah, 60 to $70.

52:32 Speaker 4 Yeah, we, I mean, we buy them in bulk, thank God.

But yeah, if you were to walk into Home

Depot to get one of the big bonkers.

52:38 Speaker 3 The big bonkers.

52:40 Speaker 4 Chonkers.

52:41 Speaker 3 Chon.

Furnace chonkers.

52:45 Speaker 1 Yeah.

52:46 Speaker 3 Okay, I didn't know.

52:50 Speaker 4 Yeah, because there's like 5 inch thick

ones by like 25.

52:54 Speaker 1 But yeah.

Yeah.

52:56 Speaker 3 God damn.

52:57 Speaker 1 Yeah.

52:58 Speaker 3 Goddamn inflation or.

53:00 Speaker 4 Oh, I

need to talk tony about the Kirkland brand.

I see him mentioning Kirkland.

53:04 Speaker 3 All right, so they're too dense.

53:06 Speaker 4 They're gonna ruin your furnace.

53:08 Speaker 3 All right, sorry.

Work with me here.

How many furnace filters are

we putting in a furnace every year?

53:18 Speaker 4 Four.

Four per furnace.

53:21 Speaker 3 So you're replacing them every three months?

Yeah, everyone's like, I don't replace

them until like a year later.

53:27 Speaker 4 Well, just keep in mind, all,

your furnace loves you.

53:29 Speaker 3 You guys, your furnace loves you.

It's working.

It's working overtime for you.

53:32 Speaker 1 Yeah.

53:33 Speaker 3 Okay, so new furnaces, we got the big old furnace chonkers.

60, let's say 60 bucks if you buy them in bulk.

Times four is $240 a year just on furnace filters.

Jesus.

Okay, what other expenses are we paying that I'm not aware of?

I'm telling you.

Wait a second.

I've been sitting here for.

53:56 Speaker 4 We buy bulk.

We

don't pay that much.

53:57 Speaker 3 I've been sitting here for 10, 15 episodes telling people that buying rental properties is profitable.

I'm suddenly second guessing this.

Holy shit snacks.

I didn't know that.

Well, thank God.

With rent to own, the tenant buyer pays for them.

Now that's also a big reason why I check in on my properties at least once every six months.

Because I do need to make sure that you can't just rely on them like, oh, they're responsible for it.

Do you think they're doing it?

That's why we check on our properties to make sure that they're

actually changing the furnace filters.

54:25 Speaker 1 Right.

54:26 Speaker 3 We can't just

leave them for three years and just assume that they're going to.

54:29 Speaker 1

Right.

54:29 Speaker 3 We got to make sure that even though they are responsible for, we need to ensure that they're actually doing it because it is still a lease, it is still a rental until they exercise their option to purchase the property.

But cool thing is that they are responsible for all the repairs and maintenance.

If you structure your option agreement and your lease agreement the right way, again, you cannot just assume that they're responsible for it.

You have to structure it properly.

So, you know, if you guys are interested in learning how to do this properly, reach out to us.

We'll teach you guys.

We'll get you the right course, we'll give you the right guidance and coaching to do that.

Some other, you know, things that they would be responsible for like if the, the dryer stopped working.

That's their cost and

their repair.

55:09 Speaker 1 Yeah, right.

55:10 Speaker 3 The fridge stops working.

That's theirs.

Should I go through all the appliances?

Because that's where all the money's coming

from.

55:18 Speaker 4 Well, also like they have a plumbing issue.

55:21 Speaker 3

Yeah.

55:21 Speaker 4 They call out the plumber.

Pay for the plumber.

55:23 Speaker 1 Yeah, yeah.

55:25 Speaker 3 All those types of things and then repairs and maintenance adds up, guys.

It's, it really affects your bottom line.

I, I hope that

you guys understand that.

55:32 Speaker 4 And, and that's why lots of, and lots of tenants will like, it's up to them.

It's their choice.

But lots of tenant buyers will complete a property inspection prior to agreeing on the home that they want to purchase.

Right.

It's, it's highly recommended that they do so that they know what

they're getting into because they are going to be responsible for it.

55:51 Speaker 1

Yeah.

55:52 Speaker 4 So they get that report beforehand that says there's these types

of issues.

You should take care of them.

55:58 Speaker 1 Yeah, yeah.

55:59 Speaker 3 We already discussed this earlier, but we'll say again that there is a built in exit strategy.

So you know what your profits are going to be ahead of time.

You know what your return on investment is going to be if you are looking to do lease options or rent owns and you're looking to raise capital for this venture, meaning that you're looking for joint venture partners.

You guys had that list.

You guys are still crossing off all these things.

These two lists.

You're putting the cat to the milk and you're putting the dog to the bone.

A lot of the big fears around rental properties, maybe they're not coming from you, but maybe they're coming from your joint venture partners or potential joint venture partners.

The person who's got

the money to partner up with you.

But they're like, I'm just so scared.

56:41 Speaker 3 What if the tenant trashes the place?

What if they don't pay rent?

Or what if, what about all the extra costs?

Like, you know, I just heard recently that Furnace filters cost 60 to $70.

We got to replace those four times

a year.

Is this even profitable?

56:55 Speaker 1 Right?

56:55 Speaker 3 All these fears that joint venture partners have, you can squash all of them if you pitch them with rent to own instead.

Because all of their fears are covered with rent own.

All of the benefits that we have with authoring these options get solved.

All these, all these benefits solve all of the fears and the issues that you know, come with rental properties, right?

It is, it's so superior to rentals.

It's complicated though and we want to make sure you get the right education.

Okay?

Just remember that.

Remember you got to get a right education.

But the built in exit strategy, the built in, the knowing your profits ahead of time and being able to answer all the questions for your joint venture partners, it really just makes it an absolute no

brainer for investors.

Absolute no brainer.

57:47 Speaker 3 I've never had an issue with pitching it to an investor because they, there's ero like any fear they have.

I can squash it with just because of the rental own strategy and the way that it's built and the way also the way that we structure our rent owns because again, there's lots of different ways you can structure it.

And if you don't do it properly, well, it can be incredibly risky, right?

So you have to make sure you set it up for success and you have to know how to do it properly.

Number 10 is just, you know, I thought this would be a great way to end it out is just that good feeling, win, that good win feeling, right?

I've always said that capitalism's kind of funny, you know what I mean?

58:36 Speaker 3 I think that if you want to succeed and you want to grow and you want to create something better for yourself.

You got it.

That's why capitalism is so great.

You know what I mean?

It's, it gives everyday people the opportunity to

build something more for themselves and for their future.

58:54 Speaker 1 Right?

58:55 Speaker 3 And sometimes people don't like the sound of that.

Sometimes people don't like the idea of I win, you lose.

That's how I get better.

Capitalism is built off of me getting more and someone getting less.

That's right.

Me buying something at a discount and selling it to you for a premium, right?

I buy stuff from China for a dollar and I sell it to you for $20 dollars.

I win, you lose.

You lose because you could go and buy it from China yourself.

You know what I mean?

Like that's, I, I go and I fix something when you could have fixed it yourself.

It's, it's.

Someone is always losing in capitalism and a lot of people don't like that.

They don't like, well, why wouldn't you just do it

for free?

Why wouldn't you just sell it for what you bought it for?

59:41 Speaker 3 Why do you got to mark it up?

Well, that's.

Because that's how

I make my money.

59:45 Speaker 1 Right?

59:46 Speaker 3 The interesting thing about Rent to Own is that and many other businesses that I have and my outlook on entrepreneurship is that I want to build businesses where I can profit from helping

people.

01:00:01 Speaker 4 Absolutely.

01:00:03 Speaker 3 If you can build a business where you make money helping people, there's no better business.

There really is no better way to run a business is starting a business where you get to profit and make money from helping people.

And this is what Rent to Own is all about.

If you do it correctly.

Now you guys are starting to understand why I don't help people online with Rent to Own.

Because if I do, I'd only be helping them develop more confidence to hurt people, which I am not interested in.

I need to make sure that if I'm going to teach someone, I need to make sure that

I teach them exactly how I do it.

01:00:42 Speaker 3 With all of the intricate systems to make sure that I'm not only setting you up for success, but I'm setting you up to succeed in helping other people succeed.

I cannot sleep at night knowing that I helped someone hurt someone.

Rent to Own is pretty dangerous if done incorrectly.

But if it's done right, it is just such an amazing feeling of knowing that were able to help someone get into homeownership.

Someone that didn't know anything about how to solve their problem.

Someone that's sitting there renting year after year, saving year after year until eventually they can buy a property.

But by the time they get to the savings amount that they need, the value of that property is higher and now they need to save more.

Or maybe they don't qualify anymore because the

value of the property went up by 20%.

It sucks.

01:01:32 Speaker 3 It's really hard to go from a renter, a tenant, to an owner.

And if we can put together a business or a model that helps people into homeownership and helps them and their family grow their financial future, I just think it's beautiful.

I think it's awesome.

And that's honestly the best, number one benefit, if you were to ask me, of doing rent to owner, offering it for your tenants.

So that wraps up today's show, guys.

I mean, hopefully it inspires you to learn a little bit more, actually learn a lot more.

Learn everything about rent to own before you do it.

But seriously, you know, do a little bit more research into it, find out if it's right for you, and.

And maybe you will see what I see.

I think it's

an amazing business model.

I think it's really great.

01:02:17 Speaker 3 I think it's really beneficial.

I think it's got a great return on investments, very low risk, as you can tell.

It's easy to raise capital for.

And it's a business where you get to help people, so why the hell not, right?

I saw some questions coming in.

I am going to save those questions, Joseph.

I will answer those questions for you in our mentorship group, the more technical ones.

And if anybody else wants to learn more about this, just send us an email, Come back tomorrow, ask more questions.

Right?

This is what the show is all about.

Not just.

We're not here to just sing and dance for you.

We're not monkeys, right?

We're not your clowns.

We're

here to answer your questions.

01:02:52 Speaker 1 Okay?

01:02:53 Speaker 3 So bring your questions.

I want to make sure that the questions that you bring are actually something that you need to know that are intentional, that are going to help you with whatever it is you're struggling with.

So you can go and take action today or

tomorrow.

So we'll see you tomorrow.

01:03:06 Speaker 4 Have a great day, you guys.

01:03:08 Speaker 1 Bye.

01:03:12 Speaker 2 Thanks for listening.

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