Rent-To-Own Scheme: A Risky Option?

In any business, there are risks. You just have to know how to manage the risks involved. You have to know how to go out of the door also.

I am also in a Lending Business and I found real estate investing through "rent-to-own scheme" more secure. It is almost the same as lending money being your property as a secured loan collateral.

As I always say, if you are strict in screening your tenant-buyers, the risks involved can easily be managed. "Rent-To-Own Scheme" is the same as the "In-House Financing" offered by real estate developers in selling their real estate inventories. This is the fastest way in selling properties because not everybody can afford to pay in full (spot cash payment). In case of non-payment of your tenant-buyers, the exit solution is just a rescission of the contract due to non-payment of monthly rent/ monthly amortization. I don't see any risks if proper procedure is being done.

I am also doing flipping of property. I also transferred some of my tenant-buyers from "rent-to-own" scheme to bank financing receiving all my capital gains in full. Where are the risks involved now? It is just a matter of strategy on how you will dispose your property fast.

I am not a real estate guru. I have learned all of these on the streets only. I have learned from failures also and I found those failures more valuable than my triumphs. I believe that the education you received in school is important but the the education you received on the street is even better.