Turning The B Property into an A+

As of Tuesday that all changed. We have turned our solid B into an A+.
 
On Tuesday Dave deposited a bank draft for $10,000 and starting in July we'll begin collecting so much rent from this property that we'll be banking $700 in cash flow profit each and every month.
 
So what did we do? Well, basically we decided to turn this property into a rent to own! And we were totally overwhelmed with the response. Like I said, this property is in a great location. It's a very high demand area. We actually had a wait list of qualified applicants without even showing the property to a single person! We were blown away.
 
What we uncovered by simply trying to find a way to turn our B property into an A was a crowd of starving people desperate to get into a rent to own program for a home in this specific area. Many of the folks we've talked to already rent nearby, work close by and have kids in the schools that are walking distance from this home. They want to live in this area but can't get financing from a bank to buy. Some of the folks anxiously waiting for a home in this area include:

• A young couple with a 4 year old son with good jobs but one person in the couple has horrible credit because they cosigned for a loan for a family member and the family member defaulted on the loan;
• A family from Nigeria that has only been in Canada 9 months and hasn't established their credit yet;
• A couple going through divorces with assets tangled up in the divorce and very little cash for a down payment;
• A single mom with credit issues coming from her divorce.

Now with our B property safely positioned as an A, we can focus on buying more properties in this area! And, while we're doing that we'll be carefully reviewing our portfolio every couple of months to make sure the A's are still A's.
 
If you have rental properties today ... take a look at your portfolio and figure out where you can improve your holdings. If you're holding B's figure out a way to turn them into A's. If you can't turn them into A's you should consider selling them. And if you're holding C's consider selling them so you can buy A's instead.
 
It's as simple as ABC ... :)

Share It!

Stumbleupon Facebook Twitter Google Bookmarks

ABC Image Credit: © Limbi007 | Dreamstime.com 

Smiling Face Image Credit: © Kuzmichevdmitry | Dreamstime.com 

Published May 27, 2010
 -------------------------------------------------------------------------

Get the Rev N You with Real Estate Starter Tips Guide free when you sign up for our complimentary Rev N You with Real Estate e-zine.

We respect your privacy and WILL NEVER SELL OR GIVE AWAY your name and e-mail address to ANYONE!