The Equity Builder Program (EBP) is an amazing tool to help everyone achieve a win-win transaction. The premise behind the EBP is that it works like a rent-to-own (or lease option) but without a specific property to purchase.
The tenant gets an opportunity to build credit toward the purchase of a property while they work through whatever credit issues they need to resolve before buying their home. Imagine, they pay down more principle through this program than if they actually purchased the property!
The owner gets a higher than market rent, has long-term tenants, cash-flow property and an easy to manage property. The tenant must behave in order to get the purchase credit. It makes an average deal a great opportunity!
I have been trying to get a house rented in a traditional fashion for nearly a month. There have been several lookers but no takers. The home is old and needs some updating. We found a family that is struggling with credit issues due to a recent divorce. They are trying to rebuild their lives and need a place to start. They now have a house big enough for the family, building equity, have a home they can eventually purchase and they are thrilled to death. We have a house that would just break even that is now has a positive cash-flow, tenants who proactively want to improve the house and reduces the management headaches of the property. This is truly a win-win situation.
(We advertised this house for rent at $1,050/mo, $1,000 deposit, 1 year contract; we rented it for $1,250/mo, $1,500 deposit, 2 year contract)
Equity Builder Program in Action
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