Sell and rent back can be a great investment for the savvy real estate investor, or even for the investor who is just getting started. If you are thinking of getting into real estate investing in terms of rental properties, sell and rent back deals could be just the way to get started.

A sell and rent back agreement is where you buy someone’s home from them, usually at a discounted price, and agree to allow the former owner to rent the house from you. The agreement can be for a six month rental up to five years or more. The time frame is entirely between you and the seller. They might just need enough time to find another place to live, or they might not want to give up their house at all, in which case you can agree to sell the house back to them after a few years.

Some advantages to investing in sell and rent back deals are that you have an immediate renter who has been in the house for a while and who cares about the condition of the home. After all, they are still feeling like it is their home, especially if the agreement includes their repurchasing the home at a later time. You can also negotiate that the renter takes care of lawn care and repairs for a lower rental rate.

You can charge any rent that is agreed upon in the sell and rent back agreement. This amount should be enough that you make more than your payments are on the house. Some investors are able to get homes at ridiculously low prices by offering to allow the tenants to live in the house rent free for a period of time. This can be a very desirable offer to the seller because they obviously are desperate for money or they wouldn’t be looking for the sell and rent back deal in the first place.

If your sell and rent back agreement allows the tenant to repurchase the home at a later date, you should set the price within the contract. Make sure that the seller understands that the price is static, even if the market continues to go down. They should also be made aware that if the market goes up, they will be purchasing their home back with instant equity. The price you agree upon for the repurchase of the house should be significantly more than you bought the house for. You make a profit on the rents as well as the subsequent sale of the house.

Make sure your sell and rent back agreement has outs. You need to be able to get out of the agreement in situations such as the tenant destroying the property once they have sold it to you. This is not common, but does happen. Your out clause should state that you have the right to evict the tenants and/or sell the home in situations that should be clearly stated within the contract. Get a lawyer to help you draw it up.

Investing in sell and rent back properties can be very profitable. It is also much easier to get a good deal on a home when the seller is in a bad way and needs to sell it right away. Be diligent in the sell and rent back process and make sure that both parties are benefiting. You’re not likely to make very many of these deals if your sellers won’t give you good references.

Benefits of Property Auctions to a seller
Are property auctions suitable to sell my house
Good reasons to use property auctions
Why Sell home using online property auctions?
Home Repossessions - An opportunity for investors
Repossetion : The truth about mortgage rescue firms
Home repossessions are on the increase - protect your home
Avoiding Repossessions - a simple guide to freedom
How Repossessions Can Impact Credit
Repossessed Homes as Investments
Selling and Renting Back Homes Schemes
Sell and Rent Back: Some Situations Beg For It
Sell and Rent Back: Answers for a Great Deal
How Repossessions Can Impact Credit
Sell and Rent Back Your Home Today!
Selling and Renting Back: Overcoming the Tough Times