Friday Oct 23, 2020

Rent to Own in Real Life with Kevin McHardy

What you’ll learn in just 17 minutes from today’s episode:

Find out the investment strategy that has given Kevin steady cash flow and an appreciation advantage with the property
Learn about the benefits of focusing on rent-to-own properties
Find out the pitfalls you should avoid in dealing with a rent-to-own investment strategy

Resources/Links:

waypointproperties.ca

Summary:

For the past 10 years, Kevin McHardy has built a steady love for real estate through focusing completely on relationships. Whether it’s helping families proudly move into their first Rent-to-Own home, or reporting significant returns to their growing team of investors, or learning from like-minded leaders in the industry, it’s the people that make his work matter.

In this episode, Kevin shares about his rent-to-own investment strategy and how he structures deals around them. Creating benefits for both the investor and the tenant-buyer at the same time, and taking the worries off of the property management, as it is taken care of by the tenant.

Topics Covered:

00:57 – How he transitioned from an airline pilot to real estate investing

01:42 – What is a rent-to-own investment strategy and how does he structure deals of this type

04:33 – Giving an idea of what a wholesale version of rent-to-own is

07:15 – Benefits for tenant-buyers for doing ren-to-own

09:48 – Advantages to rental operators of rent-to-own properties

10:47 – Price points consideration of properties in the area he is focused on and its typical terms

11:52 – What rental cash flow difference you get doing the rent-to-own versus having the house as a rental property

13:24 – What are the dangers of the rent-to-own strategy

16:56 – The advantage of getting outside credit coaches

Key takeaways:

“The benefits for tenant-buyers of our program is, they’re picking the house and we’re buying it right for them, they’ll know their set purchase price. That’s a great scenario and the rents won’t increase.” – Kevin McHardy

“As a rental operator the benefits for us would be obviously great, great, great returns of monthly cash flow is a big one and also the sale price so there’s a good amount of built-in appreciation so we know the sale price at the end” – Kevin McHardy

“We’ve got a third-party company work outside of our mortgage. Depending on their credit score (tenant-buyer), we’ll set them up and we’ll build that cost into the programs to help them out to really make sure that we can achieve the homeownership at the end.” – Kevin McHardy