Lease to Own (LTO)

What is it?

An investor acquires a property for a tenant buyer who in return will purchase it back from the investor in time with pre-determined terms.

Benefits

  • Passive investment
  • Helping a young family or first-time buyer purchase a home
  • Pre-determined exit strategy

Considerations

  • Money is typically tied up for 4 years
  • Getting qualified tenants is a long process
  • Typical cost of entry: $125,000